Is a mini loan smart or not?

Applying for a mini loan starts immediately during the application, not so ideal and quickly. This, while the name suggests otherwise. With the application, a copy of the proof of identity, bank card and recent payslip must be sent immediately. In some cases, closing within 10 minutes is not an option, because all papers must first be processed by the lender. There can even be an immediate day's loss if the provider is at a different bank than the applicant. Do not forget that the loan starts immediately on the day the amount is transferred to you!

The mini loan, a bit unattractive

A flash loan is attractive for many people, because there is often no BKR check. On the other hand, the interest rate is many times higher than with other loans. With fines, this interest can rise to 600 percent on an annual basis. This interest is therefore calculated when repayment is not made on time or when 'super urgent' is requested.
In the market you see that some mini loans are offered by lenders without an AFM license. It is very unwise to borrow money from such providers. The AFM (Netherlands Authority for the Financial Markets) is precisely in favor of supervising lenders. The AFM supervises, among other things, misleading information and excessive costs that are passed on to consumers.

Flash loan, the same premise

A mini loan is also called a flash loan. It concerns a loan amount of under 1000 US dollar. This is often repaid within a period of a month. Providers of the mini loan usually do not charge interest, but do charge handling costs. And there is the catch. There is no statutory maximum amount for this. The provider can make this as high as he wants. In this way, much more can be demanded than interest on a loan. If the applicant is late with repayment, the provider can charge penalty interest. All this together can therefore lead to considerable costs! A mini loan is more expensive than a credit that you request from the bank or a credit insurer.

How do you recognize providers of payday loans? Most providers come across very loud, a few examples:
“Do you want money in your account quickly? Then take a quick look! ”
“Now a loan without BKR ? It's possible with us! ”
“Benefit, but still borrow? No problem!"
“Unemployed, but still take out a loan? With us you immediately have money in your hands. ”

Did you know that many consumers start looking at flash loans when they have nowhere else to go? This, while these should be avoided, regardless of the financial situation. In 2019, no fewer than 250,000 mini-loans were provided. It is not for nothing that the internet is packed with complaints about this form of loan and many people have ended up in financial problems much further as a result.

Borrowing money without BKR testing is possible, but ...

Rather go for a credit with BKR testing. BKR (Office Credit Registration) ensures that you will not borrow too much financially. It is a protection for the consumer. The moment you do take out a loan without BKR testing, you can get into serious trouble. Lenders affiliated with BKR can see by obtaining information whether it is at all responsible to lend you an amount of money. If not, it is not to bother you but to protect you. BKR ensures that you will not borrow more than you can pay off. It's to avoid bigger problems. Borrowing money without BKR testing is possible, but whether it is (in some cases) also smart?