The mini-loan is a loan where only micro-amounts are eligible as the disbursement amount. On the one hand, this has its disadvantages, since you can't make big financial leaps with the money, but it also has numerous advantages. We will go into these as well as the aspects that you absolutely must consider when applying for mezzanine financing. First of all: It is usually relatively uncomplicated to apply for a mini-loan and furthermore to get it confirmed. Therefore, it is a so-called easy-to-apply loan.
There are some aspects that set this loan apart from, say, the short-term loan – even though both forms of loan have in common that it is usually a microsum that is disbursed upon loan approval. Although the special features of a microloan will be discussed in more detail in the next paragraph, it should be emphasized at the outset that this is a very special loan model. One reason for this is that this loan has a limited amount to be paid out.
The special features of a microloan
The mini-loan – also known as a micro-loan – has some special features that we would like to share with you at this point. Therefore, these are also listed below clearly for you:
- The maximum disbursement amount is usually 20.000 euros
- Perfect loan for entrepreneurs with a migration background
- An optimal alternative to the classic loan from banks
- Short terms and early repayments are possible
- Effective annual interest rate is relatively favorable at around 8 percent
These are the most relevant peculiarities that distinguish the mini-loan from other loans, although not all of them. Depending on the lender, there are often still some special clauses around the repayment and the intended use.
Requirements for applying for a mini-loan
There are various requirements to be met in order to obtain a mini-loan. What these are, you can clearly understand in the listing provided for you below:
- Permanent residence in Germany – with or without migration background
- Constant monthly income due to a permanent employment contract
- No high special expenses due to contracts or maintenance payments
- Collateral in the form of life or risk capital insurances
- In rarer cases: Providing one or more guarantors
As you can see, there are some basic conditions that must be met in order to benefit from a mini-loan. In the following paragraphs we will go into more detail about the individual requirements.
Permanent residence in Germany – with or without a migration background
You should show your permanent residence in the Federal Republic of Germany and at the same time be able to prove that you are liable to pay taxes in this country. Although the obligation to pay taxes to the German tax authorities plays only a limited role for many lenders, they nevertheless consider themselves legally secure in this way. Since the jurisdiction chosen in case of arising conflicts is also in Germany, the lender benefits from a double security right away.
However, these are not the only reasons why you should prove a primary residence in Germany. It is also important to many potential creditors that you are not an emigrant, digital nomad or freelancer based outside the EU. Even if only small amounts are involved, banks in particular try to bind such borrowers to them for the long term. This is more difficult with potential borrowers who no longer have a residence in Germany than with those who have their center of life here.
However, don't confuse your primary residence with your citizenship. If you come from a non-EU country and live in Germany as an immigrant, your primary residence must still be in Germany – and not in India or Mexico, for example. If you have your center of life in the Federal Republic, you are liable to pay taxes here, but at the same time you are entitled to start a business or open a bank account. These rights alone are sufficient to be able to apply for a mini-loan.
Constant monthly income due to a permanent employment contract
The most important indication of high creditworthiness for reputable lenders who can provide you with a mini-loan is your financial situation. Do you have a permanent job? Are there good prospects for advancement? Pursue employment in an industry that is secure in terms of orders? How long have you been working for your current employer? These are the most common questions that potential lenders ask where you can take out a mini loan.
You should therefore print out or at least digitally prepare proof of your fixed monthly income in advance of applying for such a loan. From this evidence – for example, in the form of bank statements – the lender takes the financial situation in which you find yourself. It also allows him to better assess your creditworthiness without having to obtain a credit report – which is also always associated with costs. By the way, this also shortens the application process.
No high special expenses due to contracts or alimony payments
You should avoid being burdened with high special expenses – such as mortgage repayments or financing household appliances and a vehicle – per month. Your lender otherwise figures you may not be able to make repayments on your mini-loan during some periods of time. Therefore, it is best to only apply for a mini-loan if you are repaying special expenses with lenders who do not have a good credit rating or if you do not have any extra expenses that will burden your financial situation over a longer period of time.
Collateral in the form of life or term life insurance policies
In numerous cases, lenders expect you to provide collateral – even if it is only a micro amount that will be disbursed. Insurance policies of all kinds that primarily concern your future come into question here. In addition to life insurance, this can include venture capital policies or private pension policies. Since you have already paid into them and can therefore get the money back at any time – albeit at a loss – many lenders like to see such collateral, which is why in such cases they also often waive a credit report.
As additional collateral can serve in the case of benefits in kind such as their own vehicle or even residential property. While not many prospective buyers have the opportunity to buy a property. However, if you have recently inherited an apartment or even a house, you can bring this in as collateral without any problems. This will also improve the interest rate terms significantly. Other possible collateral – depending on the amount of the loan to be disbursed – is electronic equipment such as laptops, and consoles, as well as household appliances. However, these should be in good or optimal condition to be accepted by the lender as a security deposit.
In rarer cases: The provision of one or more guarantors
Very rarely, providers of a mini-loan require the position and signature of one or more guarantors. However, this is the exception rather than the rule, since the loan amount to be disbursed is small, for example, compared to a lightning loan. Not least because of this, in this context is also spoken of a microloan. Especially if you have an account with the lender and can therefore receive the money directly, this shows itself accommodating. Finally, he knows their financial or. economic situation and has all the relevant data from you stored in its system.
The most common variants of mini-credit at a glance
You will find a variety of mini-loans on the market, all of which have different conditions. We at Kredit-Vergleich24.com offer you the option of using our loan calculator to take a closer look at the conditions of the individual loan variants. These include the mini loan …:
- without Schufa
- immediately without Schufa
- Immediately to the account
Most popular is the mini-loan, which can be applied for without Schufaauskunft. That lies u. a. the fact that your application data is not stored at the Schutzgemeinschaft and your data collection at the Schufa is not increased. The mini-credit instant is also very popular, because you get the money immediately transferred to your account.
Mini-credits at Kredit-Vergleich24.com find cheap
Especially at Kredit-Vergleich24.com you will find an excellent opportunity to get favorable offers for a loan of this type. Simply use the loan calculator, which we provide free of charge and without obligation. This comes with a lot of advantages and some filter settings. The advantages of the loan calculator on our portal include ease of use and coverage of offers for mini loans from all major providers on the German market. On the filter settings we go in the following subsection in more detail.
How the loan calculator of Kredit-Vergleich24 works.com
With us from Kredit-Vergleich24.com you will find a loan calculator, which has it in the truest sense of the word in itself. The sophisticated system by which this is distinguished, ensures that you quickly find exactly the loan with instant payout that you are looking for. Just set the filter options optimally and you can not go wrong. The filters available are the disbursement amount and loan term, as well as the purpose of use, all three of which you can set according to your needs. If something should go wrong, you can still turn to the respective lender.
Answers to the most important questions about mini loans
Which providers provide a mini loan?
You will find a variety of lenders that specialize in mini loan disbursement. With the large banks and other credit institutions you will find as a rule rather rarely, however numerous respectable loan mediators fill their gap. To mention here are u. a. Maxda, Smava and Auxmoney represent. Also Ferratum, Cashper and Cashcape as niche providers, SWK Bank as a large credit institution and foreign investors who do not take risk capital in hand, but still want to achieve a return – such as SchweizerKredit24.net – are to be mentioned here.
Which target group is a mini-loan intended for??
The great thing about the mini-loan, which like the short-term loan can be seen as a bridging loan, is that many different target groups are addressed with this financing model. This includes employees with medium incomes as well as pensioners who receive a fixed monthly pension and thus have a likewise stable income. Since the disbursement amount is kept within limits, borrowers of advanced age have particularly good chances of obtaining a mini loan.
In addition to the above target groups, consumers described by lenders as risky borrowers also have a chance to get a mini-loan. These include dependent employees, freelancers and self-employed persons, as well as students or. Apprentices – even if they are better served with a student loan – and the riskiest group around job seekers. Since the mini-loan is usually accompanied by a low disbursement amount and high return for the lender, however, consumers who receive unemployment benefits can also find with a little luck.
How do I get a mini loan (immediately) without Schufa?
As with many other types of loans, you can only obtain a mini loan without Schufa if you have reliably repaid other loan repayments in the past. If this does not apply or if this is your first application for a mini loan, you can also refer to potential lenders or. investors from abroad. In this case, however, you should bear in mind that interest rates are often higher for lenders not based in Germany due to risk surcharges levied.
In order to receive a mini loan immediately and without Schufa, you must meet a few more requirements. First and foremost, collateral plays an important role, just as with other forms of loans. If you can provide them through guarantors or life insurance, then a quick payment within 24 hours is possible. Since 2019, you have the advantage of being able to receive payments within a few seconds, even on weekend days, thanks to the SEPA Instant Payment procedure – as long as you really meet all the requirements.
Can I get a mini loan without proof of income??
This depends on how high the disbursement amount should be. At your own bank, you usually have a good chance to get an amount that corresponds to the average account flow, even without proof of income. The lender usually does not care where the money comes from. In this case, however, it is important that you have already maintained your account with the lending bank for several years and thus prove that you receive money at regular intervals – for example, from your family.
How to apply for a mini loan for the unemployed?
The borrower group around the unemployed is considered particularly risky for lenders, which leads to the fact that they have little chance of getting a microloan paid out. However, if you as a job seeker have the opportunity to provide collateral – z. B. in the form of a guarantor from your family – then you can significantly increase your chances of finding an open ear with the lender of your choice. Otherwise, you should try it with a short-term – or express loan.
Is a mini-loan worthwhile in terms of conditions??
Another important question that many consumers ask themselves when it comes to deciding between a mini loan or an express loan. Deciding whether to opt for a short-term loan or a lightning loan relates to the terms and conditions. These look good with the mini-loan – at least in comparison with the short-term loan. This is also due to the fact that by no means all banks charge a flat fee, but rather settle on an interest basis. Thanks to the relatively short terms, the interest charges that the borrower has to bear are comparatively low.