The mini loan can be requested by anyone for people aged 21 to 70 years. You must have a minimum monthly net wage of € 1000 or income from pension. In recent years, mini-loans and / or flash loans have been on the rise and more and more people seem to be taking out one. This often concerns a loan of a relatively small amount of money for a short period. It is mainly younger people who are only too happy to make use of this.
What is a Mini loan / flash loan?
You can compare a mini loan with a normal loan, only there are 2 differences. You borrow a low amount, and no registration is done for that low amount. A mini loan is gradually becoming an increasingly popular form of loan. It is mainly characterized by the relatively small amounts. These include amounts between 50 and 300 US dollars. Another characteristic is the term of the loan. With a normal loan it is often a minimum of one year, but with a mini loan it often involves days. Most maturities are between 10 and 30 days. Finally, it is characteristic of a mini loan that you do not pay interest. Instead of interest you pay handling costs and / or administration costs. Converted, you pay a higher percentage of 'interest' this way, it is only called differently.
Why take out a mini loan?
A mini loan is often taken out by young people and is more intended as a bridging of a short period. Most people take out the mini loan at the end of the month to be able to meet their obligations and then pay off this loan at the beginning of the new month. The loan is therefore not intended for a longer period. It is possible to borrow an amount of € 100 to € 1000 . It is also possible to request a different amount of money from our other providers
What are the costs of taking out a mini loan?
Due to the new legislation regarding taking out a loan, lenders must adhere to new rules. Previously, costs of 20% and more of the total loan amount were calculated per mini loan. This is no longer possible and lenders are still allowed to calculate to a low percentage. As a result, taking out a loan costs less than 1 US dollar. Of course, a lender does not borrow money for free. A lender tries to make money from extra services. For example, do you now want the money within 10 minutes than your bank account? Then you have to pay 6 US dollars, otherwise it will be on it within 3 working days. A lender makes a profit through these types of services.
Is it safe?
The biggest risk of taking out a mini loan is not being able to repay the loan within the set term. When taking out the loan you agree with the conditions and the costs. You agree to repay the loan within a period. However, if you fail to do this, administrative costs or a fine will be charged, which can quickly add up. The risk for most people is that this will become a structural problem and have to borrow money every month.
General conditions of a mini loan.
There are a number of general terms and conditions that apply when taking out a mini loan. You must be 21 years old at the time of taking out the loan and you may not take out a loan if you are in bankruptcy or are in default of repaying a loan. You should live in the Netherlands and be legally competent.
Other types of loans are:
A personal loan is a consumer credit form in which the loan amount is paid in one go and then repaid by the borrower in a fixed number of installments. Each installment contains a repayment component and interest on the residual debt.
Revolving credit is a consumer credit form in which the loan sum can be withdrawn in whole or in part over and over again during the term. Interest is charged on the outstanding balance of the credit.