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?

A mini loan is a loan of less than 1500 US dollar.

For example, do you need just a little extra money, but you don't have it in your savings account? Then you can opt for this mini loan. It is easy to apply for this loan. You search the internet for 'flash loan' or 'mini loan' and take out your mini loan here. As mentioned earlier, it concerns borrowing smaller amounts. In addition, your loan usually runs for 1 to 2 weeks, after which it must be paid off.

Snag in the grass

The interest on such a mini loan is never very high. It is usually less than 0.03% of the entire amount. But there is a catch. If such a mini loan is not paid off within the set term, additional costs will be charged. These are, for example, € 125 on a loan of € 750. And then it suddenly becomes a very expensive loan. With such a mini loan, it is therefore very important that you pay off on time. If you don't do this, you have to get money quickly before the debt gets even higher.

Borrow money quickly

A mini loan is easy to take out on the site. You enter completely how much money you want to borrow, who you are and on which account number you want to receive the money. You will then see a quotation on the screen. This quotation will also be sent to your specified e-mail address. You agree with the quotation and the money will be in your account within a few days. However, only start this if you are sure that you will have the money together in a few days. If this is not the case, it is not wise to take out such a mini loan. A mini loan is a form of borrowing money quickly. Furthermore, a mini loan is also without BKR testing.

Conditions mini loan

A number of criteria have been drawn up to qualify for this mini loan. For example, you must be between 21 and 65 years old. Your income is looked at. This income must come from work that you do yourself. For example, a possible payment does not apply. Even if you are a student, you cannot use the mini loan. You must also have a Dutch nationality.

Online Loans Approved in Less Than 24 Hours!

Getting a loan has never been easier. At this point, you can borrow money and apply for loans online. The benefits of online loans prove to be very beneficial for people who do not have that much time to look for a loan. Busy work schedules and the inevitable goings-on of day-to-day life have made online unsecured personal loans become loved by many people.

Apply for a loan online

Times change quickly. In the old days, you had to work hard and make endless visits to lending agencies to get unsecured personal loans. But nowadays this can be done from your own home. All you need to do is sit at your computer and visit the websites of the agencies that offer such loans.

There are several institutions that offer borrowing money, and finding the one that's right for you doesn't have to be a difficult task. To get in touch with these institutions, the Internet is the best tool. Note that most financial websites offer personalized services, which you can select with a search application. In this search application you can enter the amount you want to borrow, the period over which you want to pay it back and any other personal information that might be required to complete the deal. You can see your chances via the internet before the loan is granted.

Borrow money: quickly and with comfort

In short, online borrowing money brought the system of borrowing to your home. It is no longer necessary to stand in line to qualify for a loan, whether it is a mini loan, a personal loan or a revolving credit, it doesn't matter much. If you apply for a loan today, you will receive approval within 24 hours from the time of the application. However, in the case of a telephone contact or an email, it may take two to three days for you to receive your approval. And if you live in a remote place, which is several kilometers from the city, the relevance of the online application is great for you.

If you choose online unsecured personal loan, you can enjoy even more benefits than with other forms of an application. We offer you more options to choose from, if you have the internet. You can browse multiple loan websites and find out the details of the loan institutions, their prices and their terms and conditions. This way you can compare different settings with each other and analyze which one suits you best.

What requirements are there with regard to borrowing money?

There are certain requirements that you must meet before you receive the loan. First of all, you must have good credit so that the lenders can be easily convinced to approve your loan. In other words, you must have a permanent source of income. In addition, you should not have any overdue payments on your credit card. Don't be fooled if you have a bad credit history. Your credit history may not be that good, but you may still be able to take advantage of a loan only the interest rate can vary.

A payday loan from a balance dip: what is that?

During the daily ritual: reading the e-mail, I found an interesting message today. An e-mail on behalf of LendNow Bank, to promote the product Balance dip. I could borrow up to € 1500. And the best thing? It could still be in my account today. The above product is called a mini loan, or payday loan. The reason for this is that it is often a (relatively) small amount that is borrowed for a short period of time. Until 1 June 2011, this form of borrowing money was still outside the competence of the AFM. The internet is full of complaints from consumers, who by borrowing a small amount were saddled with hundreds of euros in collection costs.

From 1 June 2011, this form of borrowing has been included in the Consumer Credit Directive. This means that there must be clear information provision. The lender (in my case, LendNow Bank) also has a duty of care and must act transparently. On an annual basis, no more than 14% interest may be charged.

For whom is the mini loan of balance dip intended?

In the email I received (on behalf of Balance Dip ), some tips were mentioned on how to spend the money. That way I could go shopping with my friends for a day. A day at an amusement park should of course also not be missed. It therefore seems that this mini loan is aimed at young people, or people who can no longer get another money loan. This is understandable, of course, the majority of the population understands that taking out a loan for 30 or 60 days is a very expensive form of borrowing money. This loan was also taken out in “a flash”. So there is not much time for reflection.

How does the mini loan application work?

The site of Saldodipje provides clear information about this. For example, the applicant must be at least 21 years old and reside in the Netherlands. A minimum income of € 900 per month is also a requirement. After completing the application form on the website, a so-called credit check takes place automatically. This check checks whether you appear on lists of (known) defaulters. It is also checked whether the home / zip code entails an 'increased risk'. Is this the case? Then the loan will be rejected.

This check is performed by companies such as EDR Credit Services. Radar (see: http://kassa.vara.nl/nieuws/onterecht-wanbetaler-door-foute-postcode) has already paid attention to this. It can happen just like that that due to the (mis) behavior of a previous occupant, you will be classified as a defaulter. This is of course an extremely bad thing.

Approved, now what?

Has your mini loan been approved? Then Balance Dip sends you a text message with a confirmation. The amount you wanted to borrow will be deposited within the term you have chosen. From that moment on it is important to ensure that you pay back on time. Providers of mini-loans make use of the (for them) favorable Dutch collection legislation. This enables them to immediately charge € 40 in file costs, so that you are hunted down even further.

Resume

I am personally not a fan and supporter of this product, and certainly not the recruiting method. For example, I received an unsolicited e-mail in which I was promised all kinds of nice days. Do you have the same or different experience with borrowing money via a mini loan from balance dip? Then contact me. I want to collect the feedback to do more research into this form of borrowing and especially: its impact on the consumer.

Mini loan providers 2018

Are you looking for a loan in 2018 for some extra money and could a mini loan be able to help you with this? Not sure where to look for it? You can find it here! If you are listed with the Credit Registration Office and you still want to take out a loan quickly, a mini loan in 2018 is the ideal solution. With this special loan you can get money into your account quickly and you don't even pay interest at the moment!

Is a mini loan a good alternative in 2018.

Have you forgotten to pay a bill somewhere in the past? Or have one or more loans been taken out in recent years, and have you run into payment arrears? Then there is a good chance that you are registered with the Credit Registration Office in Tiel. You will remain in position for 5 years, so perhaps your financial situation is now stable again and it says nothing more about your ability to take out a loan at this time. Still, the listed remains, so you can only take out a mini loan. In any case, applying for a loan from the banks is now becoming a problem. Especially in these current times if you want to solve your money shortage with a loan, the banks will always check your registration first. You are a warning to them not to give you a loan so quickly because of problems with finances in the past. Banks are therefore very careful when it comes to granting loans and are making increasingly higher demands. If you need some money quickly as an advance on your salary, for some important reason, then this is not a convenient solution. That is why you better take out a mini loan now! You can have the money in your account within ten minutes.

Mini loan the solution for many people!

A mini loan is not only a good solution for you, but for many people with you! In the Netherlands alone, a total of 11,000 people are registered with the Tiel. Of course, some of these have not paid off their debt or have been in arrears, but the majority have had no financial problems with anything and simply have not paid attention. If there were no mini-loan, it means that all these 11,000 people can no longer take out a loan, because of their notation. That would be annoying. Because these people also sometimes need a quick loan and want to be helped. Fortunately, there are online credit providers who still trust them and prefer to look at the big picture instead of just the registration. A mini loan is therefore attractive for both parties: online mini loan providers can help many more people with a loan and many more people who want a flash loan with notation now claim it!

Is a mini loan still possible in 2018?

Do you wonder how it is possible to take out a mini loan? This is very simple. When applying for a short-term loan via the internet, there is simply no check. This takes time, which you and the loan provider would rather spend on elsewhere. This allows you to receive the money so quickly, so that it is really a solution for a temporary money shortage. It is of no use if you suddenly need extra money and can only receive money from a loan a month later. It will be on your account the same day of application! Moreover, it only concerns relatively small amounts, so you will never accrue a large debt. It is possible to borrow all amounts between 50 US dollar and 1500 US dollar. A mini loan can therefore be the ideal solution!

Borrow cheap money at a low interest rate.

A huge number of lenders nowadays advertise with low interest rates. The interest is then, for example, 2% lower than at a bank. However, providers often 'forget' to state that the stated interest is an action interest. In many cases, this starting interest applies for only one or two months, after which you pay a higher interest. In reality, it does not always have to be cheap to borrow 'cheaply'.

This is why you should pay close attention to a number of things. The monthly repayment and term is one of them. A low interest rate with a longer term does not necessarily have to be more advantageous than a higher interest rate with a shorter term. A low interest rate may be attractive, but do not forget to compare it to the term of the loan. In many cases, cheap loans also include (extra) insurance as part of the loan. In most cases it concerns a so-called term life insurance. You pay extra for this insurance on top of the interest on the loan. With many cheap loans, such extra insurance can be considered mandatory.

As mentioned, many loan providers advertise low interest rates. In many cases it turns out to be only an action interest rate that later turns out to be a variable interest rate, so that after a while you will pay a higher interest rate than was advertised. Many lenders also advertise a special offer, or rather; decoys.

For example, you can receive free gifts, such as a camera or coffee maker, which later turn out not to be free at all. A lender can recoup the gift by charging a higher interest, closing fee, or term life coverage for the loan.

Nowadays you can borrow money cheaply through the mini credit or the mini loan. You then borrow an amount under € 1,000, which you must repay within a month. This is especially useful when you need a small amount within a short period of time and have the money to pay it back quickly. However, a mini-credit does not have to be cheaper as advertised. If you do not pay back within the term, you may pay a high fine or the interest may be quite high.

For your own safety, your payment history will be checked at the BKR. All credits between € 500 and € 12,500 with a minimum term of three months are registered with the BKR. Certain mobile subscriptions are also registered. When you have payment arrears, you will receive a negative BKR listing. It then becomes more difficult to apply for a new loan, to protect you from falling further into debt. Lenders of the cheapest personal loans often do not do a BKR check. This means you are not protected against yourself and you therefore run the risk of falling deep into debt.

Where can I request a mini loan?

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:

Personal loans:

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:

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.

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.

The application procedure for a Mini Loan

What is a mini loan?

A mini loan is a short-term loan that can be concluded quickly. The amount to be borrowed is up to $ 1,000.00 depending on the provider. You quickly have some extra money without any hassle. Handy as an advance on your salary or when the washing machine breaks down unexpectedly.

A mini loan is also called a short-term loan . The application time is therefore very short, often you have extra money within an hour. A copy of proof of identity, a pay slip and a bank statement are requested with the application. A BKR assessment is not done, because it is not a normal loan. However, a guarantee is requested. If you are unable to provide this, it is possible to purchase insurance instead. There are additional costs involved.

A mini loan is not a normal loan. Small loan providers do not charge interest. Instead, they charge a handling fee or administration fee. The law does not set a maximum amount for this. These costs are often higher than the interest on a comparable regular loan. Against this disadvantage is the ease with which a mini loan can be taken out. When taking out a regular loan, you will only have the money after three days.

A small loan has a short term and is repaid between 10 and 30 days. When taking out the mini loan you agree to the repayment term. If you are unable to repay the mini loan within this period, a fine will be charged. These costs can add up considerably.

What do you need?

To take out a mini loan , you must be resident in the Netherlands and at least 21 years old. You also need copies of a number of documents to apply for a mini loan. With most providers, this concerns:

  • A copy of your ID, such as passport and driver's license
  • A copy of a pay slip
  • A copy of a recent bank statement

The lender may request additional documents for the guarantee. Have you specified a person who will act as guarantor for you? Then a copy of the identity document and a copy of a pay slip from this person will also be requested.

Enter the requested information on the provider's website. The documents are usually submitted by e-mail. Often it can also be done by fax and post. When sending by post it naturally takes longer before you can dispose of your money.

Your creditworthiness will then be assessed on the basis of the copies you send. A BKR test is not done and your loan is not registered with the BKR. So you can also take out a mini loan with a BKR registration. If your application has been approved, the amount will be transferred to your bank account by the lender with an urgent transfer. With some providers this transfer takes a day.

Pay back the loan amount within the agreed term. If you are not able to pay the amount on time, you will be charged and these can quickly add up.

Providers

The number of providers of a mini loan in the Netherlands is limited. After the Consumer Credit Directive came into effect on 1 June 2011, a number of providers of mini-loans stopped. There are currently two lenders active in this field in the Netherlands. It's about LendNow and Cashper.

LendNow is the European market leader in the provision of mini credits. This company is based in London and is therefore not subject to Dutch law. At LendNow you can borrow an amount between $ 100 and $ 800 for a period of 15, 30 or 45 days. A guarantee is required, where you can opt for a personal guarantee or insurance.