The mini loan – a real alternative? | Payday loan

Those who need money at short notice have the option of a mini loan. However, not all financial institutions offer microcredit because of the low loan amount.

Loans between 500 and 5000 euros

Loans between 500 and 5000 euros

A mini loan is a loan that amounts to a maximum of 5000 euros. It serves to bridge short-term liquidity problems and is a cheap solution, especially compared to the credit line. Depending on the provider, the interest rates amount to three to four percent, with processing fees still pending. The terms of such a loan are usually twelve months, but this also depends on the loan amount and the respective conditions. Here, too, there are differences from institute to institute, which must be taken into consideration. Nevertheless, a mini-loan is a good solution for short-term money problems even with negative credit bureau, which can be used especially online.

Mini loan mainly available online

Mini loan mainly available online

Since the processing fees for a mini loan are out of all proportion to the loan amount, by no means all banks offer such a loan. It is therefore advisable to go directly to the Internet and look for the right loan there. Good providers offer corresponding services with interest rates below four percent. In addition, it is easily possible to apply for the contract over the Internet. The provider then sends the corresponding documents, which contain all the necessary information.

Alternatively, the microcredit can also be completed through a financial broker. This makes it possible to also resort to the loan offers from foreign banks and thus possibly obtain more favorable terms. However, it should be noted here that the commissioning of a financial broker incurs corresponding fees.

Hardly any collateral needed

Hardly any collateral needed

A big advantage of the mini-credit are the manageable collateral. As a rule, only the usual salary statement is required, which is supplemented by a corresponding wage attachment clause in the loan agreement. In the event of a default, the bank has the option of seizing part of the borrower’s salary to settle the outstanding debt.

A guarantee can also be used as collateral. However, due to the low loan amount, banks usually try first to collect the outstanding money in the usual way. In any case, certain collateral is required to receive a mini loan. Those who do not have this, can fall back on the classic discretionary credit, but must then expect comparatively high interest rates. In addition, credit facilities are also granted only on a regular cash receipt and only to a certain amount. Who is uncertain: From the bank and in the consultation clarify the possibilities. In case of doubt, the payday loan loan helps with small sums.

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