Take out a mini loan? AFM recommends paying close attention

Many consumers take out a mini loan at their own bank or on the internet. However, there are also consumers who do not immediately take out a mini loan , but who look for other options. The Netherlands Authority for the Financial Markets advises consumers to pay particular attention if a mini loan is not taken out by regular means.

Take out a mini loan via an advertising website

The AFM mainly points to the abuses that can occur when taking out a mini loan via an advertising site. Several times a year, the AFM receives notifications about credit providers that charge a fee for taking out a mini-credit. The consumer first pays a fee to receive a mini loan, but then does not receive that loan amount. In addition to the fact that such credit providers offer mini-loans on advertising sites, use is also made of placing advertisements in regional newspapers.

When taking out a mini loan, the AFM always advises to check in case of doubt whether the credit provider does have a license to offer credit. Anyone who wants to offer credit to consumers on a commercial basis must have a license from the AFM. The providers who have a license must meet strict criteria. Incidentally, if a credit provider has a license, there is no guarantee that the party will also comply with the rules.

Borrow smaller amounts.

All too often, borrowing money is automatically equated with borrowing large amounts for the purchase of more expensive purchases such as a house or a new car. Yet we can place the vast majority of today's loans under the heading of borrowing smaller amounts. Just think of purchases such as new kitchen appliances, a new bicycle or an ultra-modern television set.

In this way, a mini loan enables people to immediately make this purchase without having to save for a few more months or even years. Of course, when something sticks out your eyes, you want to get it and enjoy it as soon as possible. And you are certainly no exception. A mini loan is therefore the tailor-made loan form for these people. To get this amount in a quick and carefree way.

Opting for a small amount is opting for a loan based on the principle of collateral. Very simple and very self-evident. You give something of value in collateral and you receive a nice sum of money in return. For this transaction, the bank always relies on recognized and qualified appraisers who can estimate your article perfectly. This way you can be sure that you will receive a fair sum of money for your item as collateral. Products that rapidly decline in value, such as computers or mobile phones, are often not eligible. This is logical, of course, if you know that the collateral must be used to pay off the debts if a default occurs. This is something to keep in mind when heading to the bank to borrow a small amount.

With a small amount, you naturally not only have obligations and responsibilities. After all, a loan also has advantages. The big advantage is that you can borrow a small amount without any problems. Most credit companies and banks do not allow you to borrow a small amount. You are only eligible for a loan from a certain amount. In addition, there are various other conditions that determine whether or not you can borrow an amount of money from these institutions.

You don't have to worry too much about it and you can immediately access the amount. This way you immediately have the money you need to buy your desired item. Borrowing a small amount is the ideal loan form for a quick loan.

What do you have to pay for a mini credit?

It is recommended never to pay for a mini credit . In addition, a credit intermediary may not request compensation from the consumer either, because in that case the intermediary will already receive a fee from the lender in the form of a commission. Incidentally , for consumer mini-loans , from January 1, 2015, the maximum permitted interest is 14 percent.