Mini Installment Loan- Look for its Benefits
If you search the Internet for offers of smaller loan amounts, you will encounter different terms. There are two of these, which are particularly common: mini-credit and microcredit . At first glance, it may not be clear what the difference between these two is. Is there any at all or is it ultimately the same financing product? In hindsight, we want to briefly highlight this for you.
As numerous as these two terms are to be found, just as diverse are their definitions. These are definitely not fixed. There are no exact specifications as to which requirements a mini or micro loan must meet. Both have in common that it is about smaller loan amounts, which would not be awarded with standard installment loans.
A small loan is basically a normal installment loan . Only the payout volume is not quite as high. In some places, upper limits of 10000 € are called, elsewhere only 5000 €. From the level, the amounts are always below those of larger installment loans. Otherwise, as usual, terms and interest rates are set. Small loans, however, have less collateral due to the lower loan. Most providers already have proof of a regular income and a positive Schufa information. In addition, you should be of legal age and have a permanent residence in Germany in order to be eligible for a small loan.
Often, small loans are also particularly flexible in repayment. Special repayment options allow you, for example, to repay parts of the loan unscheduled.
When Do We Start Talking About A Mini Loan?
As I said, there are no fixed terms for these terms. For mini loans, more specific offers have emerged in recent years. These make the term stand out sharper. A mini loan is basically a small loan up to a maximum of 1500 euros payout volume . From this limit, many providers no longer speak of a mini loan. The repayment models are also designed differently. A mini loan is considered a short loan to bridge until the next salary. For example, the terms are 30 days and the loan amount will be repaid immediately after expiration. Rate options are usually chargeable.
A mini loan can be seen as a special form of small loan. Ultimately, however, you should always read carefully what each provider understands in detail. At least in the case of mini loans, certain standards have meanwhile been established, which has made the offers very comparable.
What Is Special About Such Loans?
Since these are relatively small loan amounts, these can be applied for much less bureaucratic. Many of the offers are now completely online. This saves the providers, for example, personnel costs, whereby the loans can be offered with better terms. By applying via the Internet, loan commitments are granted much faster. Similarly, the payment of the loan amount sometimes takes only a few working days. For mini loans, the transfer can even be made within 24 hours. But you have to pay extra for such a service in most cases.