What is a mini-loan and what is it for?

What is a mini loan and what is it for?

A mini loan is usually between 1.000 and 5.000 euros, which offers considerable advantages. These apply both to the application and to the repayment. But what are the concrete advantages of a mini loan?

The mini loan and its benefits

A mini loan is characterized by a small amount of credit. Here's how you can get the loan in an amount between 1.000 and 5.Borrowing 000 euros. This has implications for the repayment period, which is usually between 12 and 36 months. It makes repayment manageable, so you'll be done paying it off after three years at the latest.

Of course, you can change the term individually, because most loans allow free unscheduled repayment. Due to the short term and the small loan amount, the interest rates are of course also lower, so the mini loan is not particularly cost-intensive.
When applying for a mini loan, banks aren't quite as picky as they are with a regular installment loan. This means that you could have opportunities even if you have only a moderate credit rating.

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What should you use the loan for

As a rule, you can apply for your mini loan for any use. There is no prescribed purpose. This in turn gives you maximum flexibility. Thus, a mini-loan is particularly suitable for bridging a financial bottleneck and maintain your payment obligations. If your account does not give much at the moment?

With a mini-credit you can easily balance your overdraft and benefit from a fixed installment amount and a manageable account movement. You can also use your mini-loan to pay for a nice vacation trip or to redecorate your apartment.

Who can apply for a mini loan?

Basically, the same criteria apply as for a regular installment loan. You can apply for a mini loan if you have a fixed monthly income with which you can service the loan installments.

For this, your household account must be positive. When you apply for a loan, the bank checks your fixed expenses and your fixed income against each other. The ratio must be positive in any case and still have enough buffer to pay for food, gasoline and other things. If the budget calculation then shows that you can pay your loan installments, there is nothing standing in the way of your mini-loan. The criteria of the bank are usually not as strict as with larger loan amounts, because the risk for the bank is lower.

However, each bank sets its own criteria, so that the question of relevant Schufa characteristics cannot be answered unequivocally. Completed negative features can also allow a mini loan, depending on the amount and duration. However, this is checked individually by the bank.
Furthermore, you should have either a permanent employment contract, or a fixed-term contract that extends over the term of your loan.

Should you e.G. If you have a fixed-term employment contract for three years, but your loan is only for two years, the application can also go through.

As a self-employed person, you can also apply for a mini loan, as the target group often includes employees and self-employed persons. The budget calculation is also important.

How can you apply for a mini loan?

You can basically compare a mini-loan via this loan calculator. The query is Schufa-neutral, so you do not have to expect any negative features in the Schufa, as long as you only start a request. Several offers are obtained during the inquiry, but these have no effect on your personal Schufa score. When you have found a suitable offer, you select it and go to the loan application form.

They will also tell you what documents you need to submit. As a rule, you can apply for a mini loan fully digitally and do not have to send any documents by mail. The identification is also possible from home.

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