Mini loan provider
It is the middle of the month, the overdraft facility is overrun and you need a small amount of money in the short term to be able to bridge the time until the next salary receipt. Everyone knows this situation. What to do? Mostly you will try to borrow money from friends or family. However, no one likes to do that. An alternative can be a so-called mini loan.
If you want to borrow a small amount of money over a short period of time, you will almost inevitably come across mini loans. In contrast to conventional installment loans, the selection of providers of mini loans is very small.
The three best-known mini loan providers in the German mini loan market are best banks. Even if the loan offer of all three providers is very similar, it is worth taking a closer look at the providers, as there are a few differences in the details.
Maximum loan amount for new customers with mini loan providers
All three mini loan providers differentiate between new and existing customers. As a new customer, you can take out a mini loan of up to $ 500 and $ 1,000. The loan amount available is partly dependent on creditworthiness and is shown during the loan application.
If you now repay your first mini loan on time and need a mini loan again in the future, you will usually have the opportunity to take out a larger loan. For example, you can take out a mini loan of up to $ 3,000.
Effective annual interest rate for mini loan providers
The annual percentage rate for the three mini loan providers is between 7.95% and 13.90%. The effective annual interest rate is higher for all three mini loan providers than for a conventional installment loan . At this point, however, you should bear in mind that with a mini loan the loan amount is usually lower and the loan term is shorter than with an installment loan.
The whole can be illustrated very well using an example:
Initial situation: best bank mini loan, amounting to $ 500, with a term of 30 days.
Loan amount $ 500 – effective annual interest rate 13.90% pa – term 30 days – repayment $ 505.79
For the mini loan from the above example, despite an effective annual interest rate of 13.90%, only $ 5.79 interest is due .
In the case of a mini loan, the annual percentage rate is not necessarily the most important criterion.
Loan terms with mini loan providers
The term of the mini loan is very short. A mini loan is usually repayable within 1-6 installments. The term of a mini loan ranges from 15 days (for best bank & nice bank) to 6 months (for best bank). In some cases, additional fees are charged by the mini loan providers for loan terms over 30 days . Any fees are shown transparently during the loan application.
Since the loan term for a mini loan is very short (which is why we often speak of a short loan), you should be sure before you borrow that you can really repay the mini loan within this period.
Withdrawal duration from mini loan providers
The disbursement time for a mini loan for mini loan providers is between 2 – 4 working days (for best bank) and 15 working days (for Cream bank). While at best bank you can look forward to receiving the loan amount in your current account after 2 – 4 working days without booking an additional option (express transfer), you have to wait a full 15 working days at Cream bank. In view of the fact that you need the loan amount promptly, this is of course a very long period.
With all three mini loan providers, you can accelerate the payment by booking a fee-based additional option (express transfer). If a loan is taken out on working days, the loan amount is credited to your current account on the same day.
The costs for an express transfer also differ greatly.
Additional costs for express transfer
- best bank: $ 39
- nice bank: 39 – 99 $ (depending on the loan amount )
- Cream bank: 29 – 299 $ (depending on the loan amount)
Credit despite Credit bureau with mini loan providers
All three mini loan providers will obtain Credit bureau information when applying for a mini loan for the first time. Unlike conventional installment loans, you can also get a mini loan if you don’t have a very good Credit bureau score . A mini loan without Credit bureau is therefore possible.
The following is important for providers of mini loans:
- no overindebtedness
- no bankruptcy proceedings
- no sworn affidavit
As already mentioned above, by repaying the mini loans on time, you can increase your credit line.
While you have to print out various documents in the Postident procedure and have to legitimize yourself at the post office, you can carry out the entire legitimation process online with the Videoident authentication. You only need a webcam and / or a smartphone.
The Videoident procedure should be the first choice, especially if you are dependent on a quick payment of the mini loan.