If you want to borrow a small amount then you speak of a mini loan. Do you want to request a mini loan? Then read on.
Credit Saver lists the advantages and disadvantages of a mini loan for you. We will also tell you more about how you can apply for a mini loan.
What is a mini loan?
With a mini loan you can borrow a small amount. The mini loan, also called flash credit, is characterized by a short duration and a high interest rate. Another feature of the mini loan is the fact that no BKR review is required.
With a mini loan you can borrow between 100 and 1500 euros. The amount depends on your wishes and your salary. Incidentally, the salary of your partner may also be included in the assessment. Loan providers assume that when you run a household together, you are also responsible for the financial side. This means that you are both liable for paying back the loan. So you also have to put both your signature.
Because it is such a small amount, the mini loan must be repaid in the short term. Usually between 2 weeks and 2 months, depending on the amount of the loan. So it is good to consider whether you can do this.
The interest rate of a mini loan is relatively high. This is not only due to the higher risk, but also because with other loans the profit margin is spread over a longer term. The interest on a mini loan can be as high as 14%. The mini loan is therefore seen as an expensive loan.
When applying for a mini loan, the Credit Registration Office remains out of reach. This means that there is no testing. So even if you have a negative BKR listing, you can request a mini loan. Because the lender wants to have something of a guarantee that the loan will be repaid, you need a guarantor. You can choose someone from your area, a personal guarantor. This person guarantees the repayment of your loan. If you do not have a personal guarantor, you can opt for an external guarantor via the lender, but there are extra costs involved.
When is a mini loan handy?
A mini loan is especially useful if you do not need structural money but are just a bit short. For example, because your car just needs to be repaired and your salary has not yet been paid. Did your washing machine break down while you were on vacation? Or if you are just in between two jobs and you just have a salary gap. Or do you just need an advance on your salary? Due to the short duration and the high interest rate, it is therefore necessary to repay the loan within the stipulated time. Before you take out a loan, consider carefully whether you are able to repay the repayments, including interest, within the specified period.
Do you want to borrow money but are you hindered by a negative BKR listing from the past? Then you can still borrow money with a mini loan. If you have a negative BKR listing because you now have arrears and debts, you may wonder whether you would be wise to take out a new loan again.
The disadvantages of a mini loan
- It is an expensive loan because of the high interest
- The loan must be repaid in the short term
- You need a personal guarantor and if you don’t have one, you pay extra costs, making your loan even more expensive.
- Choose the amount you want to borrow and the corresponding duration.
- To identify yourself, you can then upload a valid proof of identity.
- Enter your information.
- Choose a personal or external guarantor.
- For a personal guarantor you still need a valid proof of identity, a copy of a bank statement and a signed agreement from your guarantor. You can send this by mail. You don’t have to do anything with an external guarantor.
- Now verify your account by transferring € 0.01 to the lender.
- Send your request now.
Requesting a mini loan
If you want to request a mini loan, you need a number of things. If you ensure that you are well prepared when you apply for your mini loan, you can have the money in your account within 24 hours.
One of the lenders where you can request a mini loan is Bankate. Below you can read which steps you must take to apply for your mini loan.
When you choose an external guarantor you have your money in your account quickly. A personal guarantor is cheaper but it costs a little more time because the documents supplied must first be checked.
Another way to borrow a small amount of money
Another way to get a small amount in the short term is to borrow money with collateral. From a legal point of view, that is not a real loan but a sale with the right to repurchase. For example, you could consider giving jewelry or art as collateral. This is possible at a pawnshop.
Prefer to borrow a larger amount?
If you want to borrow more than € 1500, you will no longer be eligible for a mini loan. You can then choose from other options such as a personal loan or a revolving credit. Which of these loans is the best choice for you depends on the degree of flexibility you require and your loan objective. These loan forms have their own specific advantages and disadvantages.