Fast loan payment in 60 minutes does not always result in a cheaper loan rate
Mini credit payout – customers lay the foundation for quick bookings
Borrowers can specifically understand the term “mini loan payment” in two different versions. The first reading refers to the amount of the payment – simply the mini credit loan amount that is instructed by the provider. The alternative reading in turn refers to the payment method used for the money transfer. At this point, both aspects have to be discussed without any question, so that even laypersons understand what they should look out for apart from the mini loan terms and the interest on mini loans. In the first step, we look at the scope that applicants can claim on the market when submitting an application. Because at this point there are in some cases very significant differences between the details of lending.
The two important criteria for the mini loan payment are:
- the minimum amounts for macro, micro and same day loans
- the maximum sums that can be awarded
Platform operators like Best bank or Nice bank start with loan amounts of around 50 to 100 USD. The said service provider Nice bank mentions a maximum amount of 3,000 USD, whereby the mini-loan terms for larger sums are correspondingly significantly longer than for many competitors who approve a maximum of 500 to 1,000 USD as financing. As a rule, the payout amounts can normally be derived: the higher the amount, the longer the repayment phase. The creditworthiness (creditworthiness) has an impact on the maximum loan amount that consumers receive. In addition, customers have to present proof of income to the vast majority of portals, such as banks. The documents confirm that the information provided in the application is correct.
What about the obligation to prove the positive credit decision?
The credit check is usually carried out via a Credit Bureau request, which is carried out online very quickly these days. Positive: in many cases sufficient creditworthiness is sufficient for the mini loan payment. This is different from banks like Lender Bank, which operates its own mini loan called “Geldnotruf” on the market. Banks place much greater value on an average, good or even very good credit rating than financial service providers who do not come from the normal banking world. For the Credit Bureau query or the check for information from another credit agency, all that is required is the informal consent of the applicant in the course of the first non-binding inquiry. When applying for a mini loan for employees, donors usually ask for copies of bank statements from the past two or three months. These documents provide information about the amount and regularity of the income, which in turn serve as security after the mini loan payment or for repayment.
Differences in requirements for salaried and self-employed borrowers
If it is a mini loan for the self-employed, the required proof of income is usually much more extensive. In some cases, the tax assessments have to be submitted for two to three years. The evidence shows that independence has existed for a long time and that there is really a steady flow of money into the account. In the case of online loans, the documents can increasingly be transmitted digitally. This is not just convenient. Above all, the procedure speeds up the entire process and enables significantly faster mini-loan payments than with the traditional way of lending with the “traditional” identification procedure PostIdent in the local post office and sending the necessary documents by post. The fact that the authentication process can increasingly be carried out via webcam or chat on the websites of banks and credit portals pleasantly shortens the time between a non-binding inquiry and successful receipt of money on the target account. For the lenders, in turn, the completely digital lending reduces the bureaucratic effort.
The most important data about the mini loan application
Some interested parties may criticize the fact that, unlike direct banks, this does not always result in a cheaper loan rate. More important to mention at this point is the need for a detailed mini loan comparison. This is how borrowers can find suitable models to suit their budget for installment payments and their capital requirements. Comparisons and mini credit test reports naturally take several aspects into account. In the first step, the relevant features include a total of these, which we briefly summarize again:
- the financial framework of various mini loan models
- the choice of rates → from 14/15 days to usually a maximum of 12 months
- the amount of the effective annual interest rate (and possible flat fees per month)
- Award conditions such as proof of income, sufficient creditworthiness, minimum age of 18, German place of residence and account with a German bank, etc.
- possible fees for express payments
- Fees for installment deferrals or loan amount increases
- any reminder fees for late / failed installment payments
As with many banks, borrowers also have the opportunity to temporarily suspend payments of credit installments in the event of shortages on some credit platforms that specialize in mini-loans – deferred payments are often mentioned here. Often, the sums agreed for the mini loan payment can also be increased retrospectively. Customers who have already paid some installments successfully and on time can usually have at least increases to the original financing amount after consulting with customer service. With a little luck, you can also call up more money if the lender is convinced of the previous payment behavior. The basic prerequisite for increasing the credit line is, of course, that borrowers have not already fully exhausted the scope of the respective bank or platform.
Faster mini loan payouts can be expensive
Consumer advocates and credit experts as a whole are advising caution when borrowers rely on a very quick mini-loan disbursement. Even if some platforms promise a general express payment without charging fees for this special service: Other operators such as Ferratum Bank – in the case of the “Xpresscredit” offer – charge quite generous fees if borrowers value a particularly quick mini loan payment Value. Because the need is often great when a loan is applied for. It may be commendable that the conditions for the Xpress credit are presented openly and transparently. However, if a fee of USD 29 is due for the XpressService option with a loan amount of USD 50 to USD 75, this is rather not consumer-friendly given an otherwise average annual loan interest rate.
Tip : Article on the topic “Get money today”
Incidentally, the maximum of the express fee in the case of the said offer for loan amounts between 1,200 and 1,500 USD is 299 USD – only so that the application is processed preferentially and the mini loan payment is completed within 24 hours. It is therefore always a question of how quickly payments are made before accepting express payment fees. Ideally, borrowers use loans that do not incur additional costs for extra quick payments.
Other fees can also arise from mini loans
The provider also charges high fees if customers want to change the redemption date that was initially agreed. One more reason, therefore, not only to pay attention to the time it takes for the mini-loan to be successfully paid out, but also to carefully examine the impending ancillary costs for the various lenders. Keep your eyes open: In individual cases, a prepayment fee can even be charged if you want to make full repayments ahead of time. Not to mention reminder fees for late payment in installments. Ideally, you should look out for a mini loan with sufficient time, where providers do not charge any costs other than the annual effective interest rate.
How can a mini loan payment be made?
Now we come to the question of how the actual mini loan payment can be made. Bank customers of course know that the classic settlement process for financing is via the normal bank account. This continues to be the case, but the credit market is increasingly opening up to alternatives. However, the growing number of online portals is also treading new paths in this area.
One thing in advance: → The quickest way to make a “payout” is the mini loan from private.
Whoever borrows money from relatives or friends will normally get the cash injection in “cash”. So without the detour via the account. This has another “advantage”, to put it mildly. After all, financiers in particular can have problems with the tax office if they have a certain loan amount. In an emergency, the authority can assume a gift if no contract for the personal loan with exact repayment modalities and details about the loan amount, the term and in particular the interest rate can be presented. The transfer in cash avoids unpleasant queries from the office – however, credit professionals expressly advise that private loans be drawn up in order not to leave anything to chance and to create clear conditions for both financing parties
Bank transfers are increasingly not only possible
Alternatives to normal bank transfers can be selected especially with the young special platforms. CashCape promises visitors to the website, for example, a particularly quick payment when using the specially developed app. Other services, which are largely located abroad, allow the mini credit payment directly to a credit card account. Depending on the platform, customers also have the option of having loan amounts paid out via PayPal and other online services. For this purpose, additional accounts must be created in the event of an emergency. Withdrawals from accounts may result in costs. Therefore, borrowers should carefully consider which payment method is the most sensible. Bank transfers are typically free of charge and are now much faster within the international SWIFT payment system than was common a few years ago. If you start choosing a loan early on, you don’t have to rush into it later and save yourself unnecessary extra costs.
The simple calculation: → With a financing sum of 100 to 500 USD, even small fees affect the actual amount of the mini loan payment.
Unfortunately, bank and credit card users of cash withdrawals are often familiar with such problems. Many banks charge high flat-rate or percentage fees for withdrawals abroad, which are of course more important for lower withdrawals than for large amounts.
Lenders always require certain evidence before they are issued
In any case, with all hope of very quick credit, you should think of one important point: When exactly the mini loan is paid out depends not least on the borrower himself. Whether you apply online from portals like Good credit company or Nice Bank for a mini-credit from private to private from just 50 or apply for a mini-credit for employees through a normal bank like the Good Bank from 500 USD upwards: In all cases, you have to meet some conditions that have already been summarized above. In addition, you must first make a proper application for a mini loan with immediate payment. With good preparation, this can be done in minutes.