Recently, the term ” mini-credit ” appears more and more often. Many consumers are wondering what exactly is behind it. Commercial banks and savings banks often issue installment loans only in the four-digit range. They argue that the cost of working on smaller loans would exceed the yield. Alternatively, they offer the Dispo. What if a customer only needs a loan over 400 euros, but rejects a dispo because he has no clear repayment requirements?
Mini loans online are loans in the range between 100 and 3,000 euros. The repayment period varies between 15 days and 90 days, depending on the loan amount. Usually, the loan is returned with the following payroll. However, there is an exception among the providers. There, the mini loan is offered as a credit line, so it works like a credit line. At this company, new customers receive the first month as a free, that is interest-free “Probemonat”.
Who can apply for a mini loan?
The requirements are
- Residence in Germany
- Bank account in Germany
- Minimum income (usually € 500 a month)
- No over-indebtedness
- Mini loans are also available for students, retirees and the unemployed
The relatively generous lending has to do with the relatively small loan amounts. The lenders are less involved in the award than banks and savings banks for larger sums. The providers are so-called FinTechs who do not lend themselves. The funds come from partner banks, which have also focused on the online business.
For new customers, the first-time loans, depending on the lender, are limited to amounts between 300 and 600 euros.
Mini loan available immediately
Mini loans advertise with a clear plus. The application is completely online, the money is available on request the next day.
What is the cost of a mini loan?
For a classic mini loan, there are no additional costs other than interest. Depending on the provider, the interest rates are between 7.95 percent pa and 14.99 percent annually. Even if interest rates seem quite high at first glance, it should not be forgotten that they only cost very little. How this works in practice, the following table shows a provider of mini loans:
|loan amount||300 €||400 €||500 €|
|running time||30 days||30 days||30 days|
|Debit interest for 30 days||3,27 €||4,36 €||5,45 €|
|redemption amount||303,27 €||404.36 €||505.45 €|
The underlying annual percentage rate is 14.99 percent.
Additional fees are incurred if the borrower wishes to receive the money the very next day. However, the prerequisite is that all documents for the credit check are available by 2 pm.
Is there a mini loan without ?
A mini loan is in fact without , that is also available at a negative entry. Although not all providers renounce the request, the chances of receiving a mini loan despite their poor credit rating are nevertheless very good. The risk of a loan default is limited due to the small amount of loans for the lenders and therefore quite feasible.
Thus, a mini loan without , for example, is suitable for all those who, for lack of sufficient creditworthiness, do not receive a credit line from their bank.