Small loan immediately: these are today praised by many providers. For the customer, however, it is important to find the best deal with this variety of offers. But how? In order to find a good lender where you can apply for a small loan, in addition to the terms and conditions also the other credit conditions should fit. In addition to the additional credit costs, this also includes repayment terms and easy lending.
Click here to find your online payday loan online today
The biggest advantage to try this payday loan online is the possibility of immediate loan closure. Thus, the financing amount can be paid by the lender immediately to the customer. Collateral is usually not needed for small loans. Nevertheless, many lenders offer the option of taking out residual credit insurance.
Although this minimally increases the credit costs, in the event of death, illness or unemployment, the insurance company assumes the credit installments. This cost saving can be worth gold in such a case. At the same time, however, the question is whether you really need insurance for relatively small loan amounts and do not want to have the lower credit costs, everyone has to decide for themselves.
Whether a small loan is paid out quickly depends on various factors. First of all, of course, it depends on the provider, for example, there are some credit intermediaries an “express” option that speeds up the payout, but for the credit is a little more expensive. Whether the small loan is paid out quickly, however, also depends a bit on the customer. Especially if the microcredit is applied for online, you can, if you have previously provided all the necessary documents and these immediately forwarded to the provider, speed up the process of disbursement.
Small loan cheap for short-term purchases use
First and foremost, however, it should be clarified which type of loan is a small loan at all. Small loans are used when a customer requires, for example, short-term funds for the purchase of utensils or services. For example, if you want to buy a new TV, who would like to finance a holiday trip, or who would like to pay for furniture with credit installments, you will receive a small loan. Most of these loans, depending on whether the borrower meets all the criteria, also a quick payout.
Of course, a small loan can also be used for other purposes, such as small investments or the repayment of other loans or an emergency loan.
The amount of the financing depends on the customer and the bank. In most cases, small loans are limited to a financing amount. This is usually around 5,000 euros. In the case of a microcredit, the customer receives his funding and has to repay it with monthly repayment rates.
What are the benefits of a small loan
1. Fast to apply, little paperwork
The providers of small loans offer their products in Germany almost exclusively via the Internet. As a result, and by providers’ simplified procurement rules, the application process often takes less time and is not as complicated as applying for higher sums.
2. Less difficult to get than larger loans
Due to the low credit sums, the risk of a default on the credit providers is limited. That is why you have a much lower credit rating, for example, a much better chance of one of these small loans than a classic, higher credit of a bank.
3. Mostly cheaper than a credit line
A microcredit can also be an excellent instant loan to balance the account at the end of a month, to prevent falling into the minus and having to pay the often higher interest rates for the credit line.
What should be considered when applying for small loan?
Of course, the interest rate on a small loan is crucial for borrowing. Here, the interest rate is usually determined by a credit check. Although many banks advertise with particularly favorable lending rates, only after an individual credit check can the exact amount of interest be determined. For the creditworthiness of the customer both the income and the personal housing situation (rent or home) and the Schufa information play a major role.
The better these components are estimated by the bank, the lower the interest rate will be. In addition, care should be taken to ensure that the credit costs, such as the processing fees or the account maintenance fees, are very low. The repayment of a small loan takes place by means of monthly repayment rates. In the best case, it is also agreed upon conclusion of the contract that special repayments can be made at any time. So the loan can be repaid faster and the monthly financial burden can be reduced, if more money should be available for the repayment, as first thought.
Differences to a mini loan
If you really only need a very small loan amount, you should look for a mini loan. The difference in the loan offer here lies mainly in loan amount and term. For example, in most cases up to a loan amount of EUR 500 is called a mini loan, which must be repaid within 30 days.
In addition, the payout in this loan offer often happens very quickly, is often even advertised as an immediate payment, because the bureaucratic effort is kept very small due to the low buzzers.
Requirements for Cheap Small Loans
As with all forms of credit, there are a number of basic requirements that must be met in order to apply for small loans.
These criteria must be met:
The applicant must be at least 18 years old
Permanent residence in Germany
Sufficient creditworthiness / regulated income
These are the exclusion criteria:
Very bad Schufa score (provider dependent)
Ongoing personal bankruptcy proceedings
On-going application or submission of an affidavit
Pending arrest warrant
Pending garnishment by a judicial attachment order
An important difference between small credit providers and other banks may be that they tend to accept customers whose credit rating may not be perfect. They are often more willing to take the risk here than other banks. For example, providers specializing in low-interest loans reduce their own risk by reducing their terms and lending amounts.
What data does the borrower have to submit?
Before a transfer or payment can be made, of course, a loan application must be made. There are a number of claims that the borrower has to submit and that can affect what the borrower ultimately wears. The most important factors in the credit inquiry are usually the following:
- employment relationship
- Monthly income
- Does the borrower live for rent or rent?
- Ownership of reserves / homeownership