A financial bottleneck can hit anyone at any time. Maybe you’ve had an unexpected car repair, or you’ve got medical bills coming your way. Whatever the reason, a mini loan can help you overcome a financial bottleneck.
A mini loan is a short-term loan that can help you cover expenses until your next paycheck. They are very popular with small businesses and individuals because they are an easy and convenient way to make money quickly. These loans typically range from 1,000 to 3,000 euros and can be used for a variety of purposes, such as start-up costs, equipment purchases or unexpected expenses.
One of the biggest advantages of mini-loans is that they are easy and quick to approve, often with minimal paperwork. And because the amount involved is small, mini loans are often much easier to repay than larger loans. The repayment terms are flexible, so you can choose a plan that fits your budget. If you are facing a financial squeeze, a mini loan could be the solution you are looking for.
A credit line is often difficult to obtain
Overdraft facilities are generally not available for German accounts unless the account holder has applied for and been approved for a line of credit. That’s because German banks consider overdrafts to be a form of credit and have to comply with strict regulations in order to offer the service. In most cases, German banks only offer an overdraft facility if the account holder can provide collateral, such as a house or a vehicle. Even then, interest rates on bank overdrafts are typically much higher than those on traditional loans. As a result, German banks are generally reluctant to grant overdrafts unless absolutely necessary.
The better solution is a mini loan
There are many reasons why a mini loan can be a better option than a bank overdraft. One important reason is that mini-loans generally have lower interest rates than bank overdrafts. This is because these types of loans are typically drawn for smaller amounts of money and for shorter periods of time than bank overdrafts. Consequently, the risk for the lender is lower, which is reflected in the interest rates. Another benefit of mini-loans is that they can be repaid early with no prepayment penalty, while most banks charge fees for early repayment of overdrafts. Finally, mini loans can be applied for online quickly and easily, while overdrafts often require extensive paperwork and can take several days or even weeks to be approved. For all of these reasons, mini loans are often a better option than bank overdrafts.
Receive a mini loan within 24 hours
Many banks offer fast payout mini loans – you can get the money you need in just 24 hours. If you need your money immediately, there is usually an additional fee for withdrawals within 24 hours. This fee is between 39.00 and 99.00 euros. However, this service guarantees that you will have your money available within 24 hours. For some people, this is worth the extra cost.
Repayment period up to 6 months
The repayment period of a mini loan is usually between 2 and 6 months. Some lenders offer longer repayment terms, but this usually comes with a higher interest rate.
Don’t just rely on your house bank
In Germany there are a number of banks that offer mini loans. Some of the banks that offer mini loans in Germany are Deutsche Bank, Sparkasse and Commerzbank. There are also a number of online lenders that offer mini loans such as Kreditech and CreditPlus. To get a mini loan from a German bank, you usually need to have a good credit history and proof of income.
It can happen that one of the banks mentioned does not comply with your loan application. However, there are also special banks that grant mini loans despite credit bureau. This is helpful for people who have some blemishes on their credit reports but still need access to quick cash. Interest rates on these loans are typically higher than average, but they can still be a viable option for borrowers in need. The currently lowest annual interest rate for a mini loan without Schufa is currently 7.95%.
First compare – then apply
It is important to compare the terms of each lender before making a decision. Some lenders are more expensive than others and you could end up paying five times as much if you choose the wrong provider. By taking the time to compare mini loans, you can make sure you’re getting the best deal possible.
- Check the interest rate. The lower the better.
- You should also pay attention to the fees and costs associated with the loan. Some lenders charge more than others.
- Check the refund conditions. The longer the term, the more interest you have to pay.
By considering all of these factors, you can be sure that you are getting the best deal on your mini loan.
Mini-loans can be a convenient way to get extra cash, but it’s important to remember that they are a form of debt. Before taking out a mini loan, make sure you understand the terms and are confident that you can repay the loan on time.