The internet is useful for many things and has made many actions in our lives easier. 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. When you compare loans with one another, it is possible to find the best one.
Most have probably heard of microcredit in third world countries. Business start-ups are made possible with these micro-loans, which are often only a few dollars. Examples of this are the acquisition of a sewing machine in order to then work as a self-employed seamstress. With the money earned in this way, the loan installments are repaid. This helped women in particular to provide for the family.
Mini-loans, as they are also offered in Germany, just sound similar. This is because it is not about loans to secure a livelihood. However, it is a question of comparatively small loans that not every bank would offer. The reason for this is that the effort for a mini loan does not differ from that for financing over 10,000 euros. For the customer, this would result in high interest rates for small loan amounts.
Mini-loans can be paid off quickly
The reasons why people choose one Minicredit record are diverse. An unforeseen repair for the car or the purchase of an urgently needed household appliance such as a stove or refrigerator. In all cases there is an acute need for financing. You don’t have much time to compare offers on site. And there is seldom time even for a lengthy decision-making process. It is a great advantage that some Internet providers can pay off 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 presenting proof of income and information on the financial situation. All of these documents can be conveniently scanned or photographed at home. The decision as to whether the financing request will be granted is then made at very short notice.
This comparatively unbureaucratic lending is a big plus for the customer. You can do everything from home. Choice of provider, financing request and loan disbursement. Personal wishes can be taken into account. This means that particularly short loans are also possible, with which you can finance the period up to receipt of money. This is the case, for example, if you need a new washing machine in September and your employer pays the Christmas bonus in November.
A mini loan helps over a financial bottleneck
But one thing has to be clear. A mini loan can only ever be used 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 significantly smaller amounts such as five hundred euros.
This is the wrong instrument for long-term financing of real estate or vehicles. This is also due to the fact that the conditions for this are not attractive. Higher risk costs are factored in because you forego collateral. Some providers even grant mini-loans without SCHUFA information. For the resulting higher probability of default, the customer has to accept a slightly higher interest rate.
In view of the small loan amounts and short terms, this is of little consequence. This is completely different with real estate financing designed for 30 years. Most providers also have to forego flexible repayment. Of course, you want to protect yourself against the small loan amounts being repaid prematurely, in whole or in part.
Borrow money quickly and seriously
When you get into the situation of having to borrow money quickly, mini-loans are the quick and reputable way to go. You never lose track of which friends you borrowed small amounts from. Instead, you enter into a contractual relationship for the entire amount and then pay it back in monthly installments. By the way, you save yourself stress with friends or family. Of course, they also want to get their money back.
A mini loan from the Internet is serious, even if it is not granted by one of the well-known banks with their own branches. In any case, it is preferable to contact with dubious lenders, popularly also loan sharks. Since you can save yourself the trip to the bank, you can calmly compare the offers of the providers on the Internet. Here you can also find reviews previous customer and can then consciously decide on the right offer.
You can finance the short-term liquidity bottleneck or the necessary purchase with it. However, the same applies to all other loans. Only when you are able to pay the loan installment can you think about taking out a mini-loan.