What is a mini-loan or a quick loan exactly, and why should i take one if i want to loan money?

December 21, 2019

What is a mini-loan or a quick loan exactly, and why should i take one if i want to loan money?

Lenders who offer quick loans want to make a profit on their quick loan, of course. So make sure that a lender does not charge a one-off start up fee or other charges for such a loan. Some lenders offer a so-called ‘mini credit’ or ‘flash credit’. These are often lower loans with a short term. These kind of quick loan without proof are easy to get and quite expensive.

Sometimes it is advertised that no interest has to be paid, but the catch is that often (considerably) more has to be repaid than the loaned amount. These kinds of lenders often respond to the needs of people who want to borrow money directly.

  • Borrowing money directly in this way can provide fast money because often the borrowed amount is deposited quickly. But it is often an expensive form of borrowing. So borrowing a small amount with a mini loan is certainly not always a good idea.
  • Golden advice: do you want to borrow money quickly? Then think about keeping a savings reserve next time. Instead of borrowing money now and paying interest, the bank will owe interest on your savings.
  • If you put a penny aside every month, you will have built up a nice reserve at the end and then borrowing money quickly might be less necessary.

What is a mini loan?

A mini-loan is a short-term loan. It is often between 7 and a maximum of 28 days. The amount to be borrowed is usually between € 50,- and a maximum of € 1500,- at a time. Such a mini loan is usually easy to take out, sometimes the money is already in your bank account after 10 minutes. This is of course very handy when you quickly need some extra money.

In this article I would like to take a closer look at the pros and cons of a mini loan. As you can see from the paragraph above, a mini-loan is of course at first sight very easy and convenient. It is quick to take out and the amounts are small, so almost anyone can take out such a small loan.

Advantages of taking out a mini loan;

Quickly borrowing a few hundred euros, for example as an advance on income;
Applying for a mini loan is quickly arranged and is often paid out the same day;
The costs of a mini loan are known in advance, you know where you stand;
The mini loan can be applied for quickly via the internet or text message.

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