The Internet is useful for many things and has facilitated many actions in our lives. Especially when it comes to our personal finances. Today you can compare loans from different banks and other loan providers that fit your economic situation. If you compare loans with each other, it is possible to find the best one.
Most people have probably heard of microcredits in third world countries. Startups are made possible with these microloans, which often amount to just a few dollars. Examples include the purchase of a sewing machine to then work with as a self-employed seamstress. With the money earned in this way, the loan installments are repaid. This has helped women in particular to provide for their families.
Mini-loans, as they are also offered in Germany, only sound so similar. These are not loans for securing one's livelihood. But these are very much comparatively small loans that not every bank would offer. The reason for this is that the effort required for a mini loan is no different from that required for financing over 10.000 Euro differs. For the customer, this would result in high loan interest for small loan amounts.
Mini-loans can be disbursed quickly
The reasons why people take out a mini-loan are many and varied. An unforeseen repair for the car or the purchase of an urgently needed household appliance such as a stove or refrigerator. In all cases it is an acute financing need. Then you do not have much time for an offer comparison on the spot. And there is rarely time for a lengthy decision-making process either. Since it is a very big advantage that some providers from the Internet can disburse mini-loans very quickly. Payouts within 24 hours are not uncommon.
Nevertheless, it is a normal loan, for which the creditworthiness of the borrower must be checked by submitting proof of income and information on financial circumstances. All these documents can be conveniently scanned or photographed at home. The decision whether to grant the financing request is then made at very short notice.
For the customer, this comparatively unbureaucratic approach to lending is a big plus. You can do everything from home. Choice of provider, financing request and loan disbursement. Personal wishes can be taken into account. So also particularly short loans are possible, with which one can finance the period up to a money entrance. This is the case, for example, if you need a new washing machine in September and the Christmas bonus is paid by your employer in November.
A mini credit helps over a financial bottleneck away
But one thing must be clear. A mini loan can always be used only for a temporary need for money. This is because almost all providers limit this to three to five thousand euros. On the other hand, you can also borrow much smaller amounts, such as five hundred euros.
For long-term financing of real estate or vehicles, this is the wrong instrument. This is also due to the fact that the conditions for this are not attractive. Higher risk costs are priced in, because one does without collateral. Some providers give mini-loans even without a SCHUFA information. For the resulting higher probability of default, the customer must accept a slightly higher interest rate.
However, this does not matter so much in view of small loan amounts and short terms. This is quite different for a real estate financing designed for 30 years. Also one must do without a flexible repayment with most offerers. Of course, one would like to protect oneself from the fact that the small loan amounts are repaid prematurely in whole or in part.
Borrow money quickly and seriously
If you get into the situation of needing to borrow money quickly, then mini loans are the fast and reputable way. You never lose track of which friends you have borrowed small amounts from. Instead, you enter into a contractual relationship for the entire amount and then pay it back in monthly installments. Besides, one saves stress with friends or family. These want to get their money back of course.
A mini loan from the Internet is reputable, even if it is not granted by one of the well-known banks with their own branches. It is always preferable to contacting dubious lenders, popularly known as loan sharks. Since one can save the way to the bank, one can compare the offers of the offerers in the Internet in peace. Here you can also find reviews from previous customers and can then make a conscious decision for the right offer.
The short-term liquidity bottleneck or the necessary purchase can be financed with it. However, as with all other loans also applies. Only if you are able to pay the loan installment, you can think about taking a mini loan.