The annual utility bill, a broken car or a broken washing machine can be reasons to take out a small loan. It becomes important that the loan is disbursed promptly and allows you to bridge the financial bottleneck without having to wait.
If the energy provider demands an additional payment, you usually only have a few days to make the transfer. This means that you will default on your payments after a short period of time and will be subject to an entry in your credit report (Schufa).
To avoid this limitation of creditworthiness, you can take out a small loan and make the necessary payment immediately. Small loans don't have to be expensive, because in a comparison you create transparency and find out where you can take out small loans and get the most favorable interest rates.
FAQ on the small loan
What is a small loan?
A small loan is an installment loan that is made for small amounts of money. The amount of the sum to a maximum of 10.000 euros in rare cases. Normally, small loans are granted up to an amount of 3.000 euros or 5.000 euros awarded. Like other installment loans, it can be used universally.
How much is a small loan?
A loan is usually considered a small loan if it exceeds the ceiling of 3.000 or 5.0000 euros. In a few cases, loans up to 10 also apply.000 euros as microloans.
What is a small loan?
This is important
The term microcredit refers to the amount of the credit, which is a maximum of 3.000 Euro or 5.000 euros of credit included. In some cases also apply credit with a sum of up to 10.000 euros as small loans. The small loan is also known as a mini-loan and is one of the loans that are increasingly requested for various reasons.
For a small loan you do not necessarily have a high credit rating, because the Schufa is checked fairly and is not strictly evaluated when taking a small loan. The smaller the amount requested and the faster you pay off the liability, the more favorable the offers for mini-loans are.
Attention!
The mini loan has a special feature. As a rule, you repay small loans in one sum in a period of 90 days. Installment payments are possible, but in most cases limited to a maximum term of three months. If you want an exception, the mini loan becomes more expensive, and it's a matter of weighing whether it's still a favorable and sensible option in the process.
For what purchases can you take out a small loan?
As the maximum amount indicates, small loans are primarily suitable for lower-end purchases and bills. A short vacation trip, a repair, the purchase of a new piece of furniture or an urgent bill are all reasons to take out a small loan.
Especially in the context of urgent bills or purchases that do not tolerate delay, the small loan comes into focus. Most offers, if you take out small loans, are associated with an immediate disbursement without waiting period. At your local bank, mini loans are generally not an option.
But in the open financial market or through a reputable financial service provider, you can easily take out a small loan and make the desired purchase. The requirements correspond in the small loan to the conditions that also come to the attention of the classic installment loan. Only in terms of your creditworthiness there are deviations, because you take out small loans and consequently do not have to expect a strict evaluation of the Schufa score.