It does not always have to be the big sums of money involved in a loan. In many cases, only small sums are needed, because it is often just a bridging. However, this can sometimes be more than necessary, because in many cases, an important bill is behind it or it must be done on the spot repair.
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In such a case, a small loan can provide a remedy, because only very small sums are awarded here. But what does the loan seeker need to know in this context and what are the hurdles to be overcome? Are there special conditions that have to be met here? All these questions should be answered here so that there are no difficulties in taking such a loan.
What is a small loan?
A microcredit is a loan that is given only at a low level. These are typically amounts less than $ 1,000.
The small loan is used in most cases, when fast financial transitional solution must be found. This is mainly due to the fact that interest rates are particularly high here because the terms are kept very short.
For the purpose of consumption, these loans are in no way suitable, because this can borrowers very quickly. Therefore, it is usually only possible to take out a loan at the same time.
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However, a small loan can also be higher than 1,000 euros, if this is given for example by a bank. Here the amounts extend up to a value of 5,000 euros.
However, there are very few providers that are active in this area, because the costs exceed the income of the loan in many significantly, so that such offers are simply not worthwhile for a bank.
Which providers of small loans are there and where can they be found?
Small loans in comparison portals can best be determined. Here, the user will find a large overview of all offers, with the same interest being displayed immediately. In addition, the remaining conditions for the user are broken down, so that he can make an informed decision in good comparisons.
A provider of small loans is here for example Cashper. This offers one with a height of 600 euros or less. However, interest rates are a considerable 13.99 percent, which can be described as normal in this area. This is partly because the running time is very low. However, such loans are also rated as risk loans, because the credit check is primarily carried out through an internal procedure, so that people may also receive a loan that has negative entries in the KSV.
Cashper offers the loan with a term of one month. This can also be increased if a paid package is purchased here. The repayment period is extended to a maximum of three months. The customer can handle all matters directly in an online account and also always see the status of his loans. At Cashper, although several loans can be applied for at the same time, these are only paid out when the existing amount has been paid.
Among the big banks, there is only one that grants a small loan. This is the Santander Consumer Bank, which awards one with a value of 4,000 euros. The conditions are quite moderate, since a complete review of the KSV is carried out here. With an interest rate of just 3.07 percent, this loan can be taken up for a maximum term of 12 months. Here, too, the usual banking conditions apply, because up to the amount of the sum is a normal installment loan.
How must a small loan be applied for?
For banks, there is no difference to a normal loan. Even with a comparatively small sum, all finances must be disclosed and the borrower must have a clean KSV and a fixed income.
Unlike usual, this can also be a temporary employment contract, as long as it is not terminated before the end of the term of the loan.
For providers like Cashper, the process is similar. After providing all personal and financial data, the application will be sent and the examination of KSV will be carried out immediately.
However, this is not the decisive factor for the award, because a credit check is always carried out, which runs according to its own criteria. Thus, even persons can receive a microcredit, which would no longer receive loans from a regular bank due to negative entries in the KSV.
To manage the loans, the customer must always create an online account. In this new loans can be requested again at any time. In addition, the required documents can also be uploaded here for review. These include:
- valid employment contract (may also be temporary)
- Proof of income over the amount of salary paid
- Copy of identity card or passport
- Revenue statement to confirm the address data
- possibly a copy of the cash card confirming the account owner
The identification can also be made in an online process by means of a webcam, so that in this case, the way can be saved on the Identbrief. Once this is done, the amount can be paid out immediately. If an additional option for an express transfer is booked here, then the money is already in the account within 30 minutes. However, such an offer is not available at every provider.
What is the difference between a microcredit and a mini loan?
Many people believe that a microcredit and a mini loan would designate one and the same. However, there is a subtle yet significant difference. A mini loan is limited to a sum of less than 1,000 euros.
This is usually not awarded by banks, but only by special providers who have specialized in this business. These usually have contracts with normal banks, which serve here as a sponsor. The entire process is taken over by the respective companies.
A small loan can be obtained up to an amount of 5,000. This is also given by some normal banks. It not only serves to bridge bottlenecks, but also to finance smaller purchases, so that such amounts are often used by self-employed, who are currently in the start-up phase.
Here then bank-usual conditions arise, so that it is basically a normal installment loan. However, the border is fluent and a precise demarcation can not be made in each case.
Can small loans be requested with a guarantor?
As a rule, a guarantor can also be used for a small loan. However, this is not common, because in most cases, the small loans are forgiven even if the KSV contains negative entries. This is especially the case with external providers beyond normal banks.
However, a small loan will not be forgiven even if there are so-called hard negative features in the KSV. This is the case, for example, with the signing of an affidavit.
However, a bankruptcy also means that no loans will be awarded. This is due to legal requirements that all official lenders must comply with. The same applies in particular if there is an arrest warrant for the enforcement of an asset disclosure. Here then any money lending is denied.
Only in such cases it is appropriate to include a guarantor in the contract, but this must open in companies such as Cashper but the account. Otherwise there is no possibility to receive such a loan.