Small loan comparison: who can take one in and where can you get it?

 

A large proportion of consumers in Germany today use smaller forms of loan. This includes small loans , which can be applied for very easily and are much more manageable than larger installment loans. This has the advantage that you can be paid out very quickly. One speaks here also of a small loan with immediate disbursement or mini loans. You can find out exactly what a small loan is and what you need to know in the following.

Editor’s tip: If the loan amount is at least USD 500, online credit brokers such as Centi Loan Lender.de are more worthwhile than mini loans. You have to pay back the money in smaller installments and from 12 monthly installments – with mini loans, the money must be paid back within 30 days, otherwise there are expensive late fees! Centi Loan Lender also pays small loans within 24 hours for Credit bureau entries!

What is a small loan?

What is a small loan?

There is no exact definition for small loans. Especially since there are other distinctions for this term, which we will discuss later. Basically, a loan of a maximum of 10,000 USD is referred to as a small loan. Occasionally, an upper limit of 5,000 USD is also given. In any case, it is a loan with a lower loan amount, which is treated like a normal installment loan.

Small loans are now becoming increasingly popular. According to a study by Credit bureau from 2013, only around 30% of all loans are over 10,000 USD. So the need for smaller loans is increasing. However, small loans are not granted by all banks. Such small sums often do not pay off for the bank due to the resulting fixed costs.

While small loans are capped, the minimum amounts paid out are fairly open. However, a distinction is made here in terms. If a small loan has a loan amount of $ 1,500 or less, it is usually referred to as a mini loan. These behave somewhat differently from the conditions.

What are the differences in small loans?

What are the differences in small loans?

As I said, whether the loan is a regular small loan or a mini loan depends on the loan amount. Mini loans are paid up to a maximum of 1500 USD. Anything above that is a common small loan as long as the loan amount is not more than 10,000 USD.

There is a very clear difference in the term. A small loan is just a normal installment loan. Usual terms here are between 12 and 36 months. A mini loan, on the other hand, is considered to be a bridge to the next salary entry. Accordingly, the terms are usually 15 or 30 days.

Small loans then differ in terms of interest or costs in general. Small loans below 1500 USD usually have significantly higher interest rates, which can well be in the double-digit range. Due to the very short runtime, these are not so clearly noticeable. With a small loan with a longer term, the interest rate is at a common level for installment loans. The cost of mini loans mainly arises with the additional services. Immediate next day payment or a 2-installment option are offered for an additional fee, which can make such a small loan very expensive.

When is which small loan suitable?

Based on the different conditions, the various small loans are sometimes more and sometimes less useful. A normal small loan is suitable, for example, for medium-sized purchases, such as expensive electronic items. But always compare the possible offers. In some cases, a hire purchase can also be a cheap option. The small loan can also be used for debt rescheduling, for example to compensate for the credit facility used or to replace other loans.

The mini loan, however, is suitable for short-term financial bottlenecks. You should not use this small loan to purchase consumer goods. This does not pay off in terms of the conditions or a corresponding consumer loan is much more sensible in this case. Mini loans are intended for when money should run out at the end of the month or an unforeseen bill goes into the house, as well as for short-term repairs.

Who grants a small loan?

Who grants a small loan?

There are now numerous providers for small loans. There are slight differences depending on what you want exactly and how high the loan amount should be. You can get an ordinary small loan in installments from many larger banks, for example from Cream bank. There are also special providers for mini loans that specialize purely in this loan offer. At other banks, you are unlikely to receive such low loans, at least not on these terms. 

Editor’s tip: If the loan amount is at least USD 500, online credit brokers such as Centi Loan Lender are more worthwhile than mini loans. You have to pay back the money in smaller installments and from 12 monthly installments – with mini loans, the money must be paid back within 30 days, otherwise there are expensive late fees! Centi Loan Lender also pays small loans within 24 hours for Credit bureau entries!

Is there a small loan without Credit bureau?

Is there a small loan without Credit bureau?

When lending, German providers are legally obliged to check your credit rating. This is usually done with the help of Credit bureau, so as long as you obtain a loan from a German bank, regardless of which provider, Credit bureau will always be checked. Weak negative characteristics do not automatically lead to rejection. With such small amounts, some are overlooked. For example, this is the case with some providers of mini loans.

However, it is more common for small loans that the taking up of such a loan is not reported to Credit bureau. You can therefore obtain the Credit bureau-neutral small loan without it having any influence on subsequent loans, for example. Mini loans or small loans from private to private are usually not entered in the Credit bureau.

If you really want to have a small loan without Credit bureau check and registration, then you need to contact a credit broker. This then mediates to a bank located abroad, such as in Switzerland or Liechtenstein. Credit bureau is irrelevant to banks based there. Your creditworthiness is assessed in another way. Here, the evaluation criteria, for example in relation to your income, can be much tougher than for loans with a Credit bureau examination.

What are the requirements for a small loan?

The requirements for a small loan are much lower than for a larger loan. Above all, less collateral is required from the bank. The basic conditions are:

  • Minimum age of 18 years
  • A permanent and permanent residence in Germany
  • A regular income

Income is particularly important here, since in most cases it is the main security for small loans. Depending on which form of small loan you apply for, the amount of the minimum income required will be higher or lower. In the case of a small loan through a credit broker, an average of $ 1130 per month is required; with a mini loan, $ 700 is often sufficient.

Even if some providers overlook weak negative entries in the Credit bureau, you should not be able to show any hard features. This includes, for example, private bankruptcy, an affidavit or a garnishment of wages. In such cases, no provider will grant you a loan. Even small loans without Credit bureau are then not possible.

Who gets a small loan?

As a permanent employee, you always have a very good chance of getting a small loan. As long as your income is within the required range and you have no hard negative characteristics in the Credit bureau, nothing stands in the way of the loan. For many banks, assignment of salary is sufficient as additional security. With a mini loan, this is even eliminated.

Mini-loans are very easy to obtain for the self-employed and freelancers. When it comes to loans, banks always have a hard time with this group of people. Nevertheless, a normal small loan on installments for the self-employed is also possible. Since assignment of salary is not possible, the assignment of life insurance is used as security, for example.

It will be a little more difficult for the unemployed. A small loan without income is not easy to obtain. If in doubt, this is only possible with the help of a surety. Offers that advertise unemployed people with a small loan should be viewed with skepticism.

Small loans for students and trainees are also possible as long as you have a corresponding income. A small loan for pensioners can also be applied for in some cases. Credit intermediaries such as receipt credit have no limit on the maximum age. Elsewhere, however, a co-applicant or guarantor is recommended if you want to get a small loan as a pensioner.

Do I get a small loan with a fast payout?

That all depends. Many of the offers for small loans are applied for online. This speeds up some processes when applying, which is why a small loan with an immediate approval is not uncommon. However, this does not mean that the small loan is transferred to the account immediately . It can take a few working days for an application to be fully processed and the money paid out.

You will only receive a small loan with immediate payment if the provider enables a fully digital contract. This makes it possible for you to complete the loan online. You can find out from which providers you get a quick loan in our small loan comparison above.

Detailed information on small loans

Detailed information on small loans

Small loan without Credit bureau

It can always happen that you are in a position to need a loan without Credit bureau query. At banks these days, the principle still applies that people who need the money in their account immediately do not get a small loan immediately, despite Credit bureau , because the bank believes that the risk of loss is far too great. The credit institutions must of course keep the risk of loss as low as possible. This is very frustrating for people with poor credit ratings.

If you want to have a small loan without Credit bureau, you can normally state a regular income from a professional activity. You also need a complete payment history. This payment history is checked by the bank using Credit bureau information. Those who come with a negative Credit bureau usually have no chance of a small loan. This can already result from a canceled cell phone contract. Nevertheless, there are also credit institutions that also grant people with a negative Credit bureau entry a small loan. This applies above all to the self-employed, housewives and people with generally poor credit ratings.

Editor’s tip: If the loan amount is at least USD 500, online credit brokers such as Centi Loan Lender.de are more worthwhile than mini loans. You have to pay back the money in smaller installments and from 12 monthly installments – with mini loans, the money must be paid back within 30 days, otherwise there are expensive late fees! Centi Loan Lender also pays small loans within 24 hours for Credit bureau entries!

Credit bureau is a German institution. The institutions for instant Credit bureau-free small loans are mostly located in other European countries. One of these locations is Liechtenstein, for example. Small loans without Credit bureau are usually brought to the customer by intermediaries. The best way to contact these intermediaries is via the Internet. The decision about the approval or rejection is made very quickly. You should carefully deal with the suppliers beforehand so that you do not look at the wrong product yourself. Above all, you have to read the terms of the contract carefully. Personal data must also be entered truthfully and with particular care. If you look at it beforehand and look for all the documents together, you can save some time.

Borrowers are still a very competitive clientele in 2019. This applies not only to the particularly easy cases, but also to the difficult ones. Loan interest for small loans immediately without proof of income can still be used to earn good money. If you want to have a small loan without Credit bureau, you should first of all be aware that there are no cheap small loans without Credit bureau and without proof of salary. Generally speaking, the greater the risk of default, the more interest the customer will ultimately have to pay. However, there are various ways to improve creditworthiness even with small loans without Credit bureau. This gives you better interest. On the one hand, you can name a solvent citizen or conclude an additional guarantee agreement. Credit loss insurance is also advisable. With us you will find all the important information about the reputable providers who give small loans without Credit bureau. A small loan without Credit bureau query is not possible for retirees or without proof of salary.

Small loan with instant payment

If you would like to treat yourself to a nice short vacation to relax for a few days or need some money for a broken TV, you can use a small loan with an immediate payment. A small loan with immediate payment is now possible without any problems. This loan can be applied for quickly and easily and a short time later the amount is already credited to the checking account. However, all the necessary documents must be available for this. The small loan is not earmarked so that the amount can be used freely.

Advantages of an instant payment loan:

  • From a loan amount of 50 USD
  • either long or short terms
  • Immediate decision after applying for a loan
  • Credit in the account within 24 hours
  • Application completed in a few minutes

The small credit transfer immediately as an alternative to the expensive overdraft facility. Some people simply overdraw into checking accounts when there is an acute need for money, but you should exercise caution here, in contrast to the long-term use of the overdraft loan, there are high costs. This is not the case for a small loan with immediate disbursement. If you use a credit facility, you also quickly lose track of things. An immediate small loan is ideal for all smaller purchases that can no longer wait. You can also retrain an expensive overdraft. Short-term financial gaps can be easily closed with the help of a small loan with immediate disbursement. You don’t have to wait long for the small loan 500 and the loan amount can be paid off in installments.

In comparison to the small loan from the house bank, the small loan with immediate disbursement benefits from particularly unbureaucratic processing, a quick process of particularly good conditions. The interest rate also depends on the credit rating for small loans. However, a small loan in the lower 4-digit range represents only a very low risk of loss for the lender. That is why small loans with immediate disbursements are usually available at favorable conditions. We work with all relevant financial partners and offer information on the most important loan programs in the financial market. You benefit from a huge range of products and the opportunity to find exactly the right small loan on the account for your needs.

Small loan from private individuals

Small loan from private individuals

A small loan into the account that is not granted by the bank but by one or more private individuals is called a personal loan. For such a small loan, you can use credit marketplaces such as Capital Lender. Such a marketplace mediates between the borrower and the lender. Such small loans also benefit people who have only moderate creditworthiness or creditworthiness. A moderate credit rating can occur, for example, due to a fluctuating revenue situation.

The credit marketplace on the internet is not only extremely helpful when looking for a private lender, but is also extremely helpful in processing small loans. Applying for and processing a small loan with private investors is just as easy as with a bank loan. Not only borrowers benefit, but also private investors. Investing in a small private loan brings a better return prospect and is a good alternative to other forms of investment. The small loan immediately from private is basically a win for both sides. For financiers and borrowers. The small loan from private is not only given to private individuals, but also to traders and other self-employed.

It is a small loan for the self-employed from private. Bank financing is often prohibited for these people due to the fluctuating income situation. However, this is not a major obstacle to a private small loan. In the beginning, this form of financing was primarily used by private individuals. As a result, this form of small loan was also called small loan from private to private. If you want to take a small loan from a private person, there are only a few other requirements apart from dealing with creditworthiness differently. Most of the requirements are identical to those of the bank.

  • Age of majority: Even with small loans from private to private, the borrower must have at least reached the age of majority, i.e. the age of eighteen.
  • No negative characteristics may be stored at Credit bureau. Negative features can include, for example, the inclusion of the credit card due to misuse, attachment of wages or an arrest warrant. A late payment of invoices does not count at first, but only as long as no judicial dunning procedure has been initiated.
  • Creditworthiness: The credit rating classes A to H enable the successful termination of a financial project for small loans from private customers.
  • A monthly income of at least 1000 USD net
  • permanent employment
  • Resident in Germany
  • Account in Germany

If you want to check your creditworthiness, you can ask Credit bureau free of charge. However, a query is only possible once a year and per person free of charge.

Small loan for the self-employed

It is now much more difficult for self-employed people to get a small loan. This is especially true after starting a new company. But even companies that have not been around for a long time have trouble getting a small loan from their house bank. These are very rarely awarded. Nevertheless, there are some providers on the Internet who also give small loans to the self-employed.

What do you have to consider?

The main reason for a loan cancellation is that the self-employed and freelancers without collateral and proof of income do not have a lower income. In addition, the altitude fluctuate. A negative Credit bureau entry can also result in the application being rejected. The banks are at least as strict on this issue as they are on applicants in dependent employment. The most common reasons why a small business loan is rejected:

  • the independence is less than 3 years
  • the self-employed person does not have enough collateral
  • the overdraft facility is used continuously
  • the income is too low

In principle, the self-employed are advised not to take out a small loan until they have been self-employed for at least 3 years. Usually, the numbers generated during this period are enough to make a meaningful decision. If you have only been self-employed for a few months or for one or 2 years, you will only get a small loan from very few banks. So that you can get a small loan as a self-employed person, you have to present some documents when applying for a loan. These are:

  • Income statement
  • Revenue and surplus account
  • Proof of income tax
  • current bank statements

Most banks require bank statements from the past 12 months. There are also cases where the bank statements from the past 2 to 3 years are required. In addition, most banks are not satisfied without proof of income. Of course, the credit institution checks the accuracy of the data given on the basis of the submitted documents. A rating is then carried out. The score that comes out with this rating decides whether you get the small loan or not. In addition, the interest rate is determined based on the choir. Basically, the better the score, the lower the interest payable.

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