Small loans have been experiencing a veritable boom in the financial sector for quite some time, which is why financial services providers are increasingly designing more specific and sophisticated offerings for specific audiences. One of these is the so-called mini loan, where borrowers can borrow only small amounts in the two- or three-digit range for a relatively short period of time, which is immediately on the account. These loans are therefore also referred to as a mini loan or short-term loan.
Why pick up a mini loan?
- How to apply for the short-term loan with instant confirmation?
- Why does a short-term loan make sense despite additional costs?
- What alternatives to short-term credit are there?
Why pick up a mini loan?
The short-term loan is offered to new customers usually within a range between 100 and 600 euros immediately, with some financial service providers but also amounts in the double-digit range are possible (the maximum amount for mini credit are, depending on the provider, up to 3000 euros). This loan will help if the borrower currently has a liquidity problem and wants immediate money, for example, because he has previously forgotten to pay the electricity bill, which should now be done immediately to avoid problems with the provider. The mini loan is then repaid mostly after the next payment on the account. Mini loans from 1000 Euro are in our mini credit comparison on the start page , while we recommend for smaller sums (less than 1000 euros) and for real short-term loans immediately on the account minikreditsofort.net special page .
How to apply for the short-term loan with instant confirmation?
Anyone who wants to take out a mini loan immediately, just has to find a suitable provider on the net and then fill out the application form. The interested party should immediately submit the necessary documents; Usually, proof of a regular income , for example in the form of payroll accounting, is sufficient. Thanks to standardized procedures, applicants often receive a few minutes notice as to whether the application has been approved or not, and then the money is transferred in the quickest possible way.
Why does a short-term loan make sense despite additional costs?
Although a higher interest rate applies to a short-term loan, it can be useful in many situations – even for economic reasons – to take out such a loan. The reason: The interest rate is usually the APR . However, because the respective amounts are only taken over a period of a few weeks, the visually higher-interest interest rate is put into perspective again, because the bottom line is that there are only small additional costs. This applies at least in cases where borrowers forego additional benefits such as an immediate payment or installment payment over a longer period of time. These extras are in fact associated with other fees by which the providers actually earn their money. Thus, the mini-credit bottom line may even come cheaper than many alternatives to bridge a liquidity shortage.
What alternatives to short-term credit are there?
Those who have sufficient income and the necessary collateral could also borrow a conventional installment loan . However, this only makes sense for larger purchases. Because the offers of the financial service providers usually start here only in the four-digit range and the terms are correspondingly long. The borrower must therefore pay interest over a long period, just because he wants to pay before the next payment, for example, still a small bill.
Also, the credit line is not necessarily the better alternative, especially if you should get the money immediately on the account. Anyone who applies for a posting at his bank must first of all expect a waiting period for the processing – the mini-loan, provided that all documents are complete, however, paid with immediate commitment. In addition, the Dispo seduces to fully exhaust the disposition framework, and at relatively high interest rates.
Borrowing money from acquaintances would be another alternative to mini-credit. However, it is first of all, to ask relatives, friends and acquaintances, without guarantee that they can actually lend the required amount immediately. Here, the affected may lose too much time, especially if an invoice must be paid immediately. A small loan from private to private, there are now also on corresponding credit marketplaces on the Internet, but there is not the money immediately on the account, but must take into account with 2-3 weeks of waiting.