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Mini loan

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For many, the mini loan is an immediate and uncomplicated solution to finance surprising costs or investments at short notice.

He can help out and bridge bottlenecks towards the end of the month so that it is possible to settle all bills.

The best thing to do is to transfer it to the account immediately.

If it is certain that your own money for the repair of the car or for the bills is not enough by the middle of the month, the solution can be very simple:

Apply for a mini loan.  

In this article you will find information related to the following topics:

  • Definition of a mini loan
  • Is there a mini loan without Schufa with immediate payment or can one be obtained despite Schufa
  • Can a mini loan be transferred immediately to the account online - immediate payment?
  • Provider of 500 euro mini loans
  • Mini loans from private and / or without proof of income
  • And much more

Find out everything about mini loans and read whether a mini loan without Schufa with immediate payment is possible.

What is a mini loan?

The mini loan is a form of loan in which small amounts, usually up to 3000 euros, can be borrowed.

It is used, for example, to deal with short-term financial emergencies, i.e. acute liquidity bottlenecks.

Often it is a small loan, i.e. borrowed amounts of between 500 and 1000 euros.

The maximum loan amount from a mini loan varies with lenders.

Since a mini loan is a very small amount of money borrowed, the term is correspondingly short.

In most cases the duration is between 30 days and 6 months. That is why a mini loan is also called a short-term loan.

Often the term is around 30 to 60 days. With the next incoming salary, the loan is then often paid back directly.

Mini-loans are a quick and practical solution for paying sudden bills quickly and avoiding inconvenience.

The mini loan is often used as an alternative to an overdraft facility.

In the case of an overdraft facility, an overdraft is approved by the bank up to a certain credit limit. See section 8 of this article for more information.

Advantages and disadvantages and requirements

The advantages of a mini loan:

  • Short term - interest is only paid for the agreed loan term
  • Due to the small amount, approval is very likely, as the risk of default on repayment is lower
  • Simple online application with quick processing and quick approval / payment
  • 100% online processing possible through the VideoIdent process
  • Little bureaucratic effort, not many documents necessary

Disadvantage of a mini loan:

  • High fee costs for additional services

Despite the relatively small amount of money, certain requirements must be met in order to receive a mini loan.

The requirements for a mini loan: 

  1. Of legal age
  2. Valid ID
  3. German residence, German current account
  4. Proof of income of at least 600 euros per month

However, it should be noted that requirements may vary depending on the lender / provider. This also applies to the granting of a mini loan without Schufa.

The question of what the difference is between a mini loan and a small loan can quickly arise.

Concerning the loan amount in a nutshell:

Difference between small loans and mini-loans: mini-loans = mostly between € 100 and € 3000, small loans = between € 500 and € 5000

To learn more about small loans, please read our article on small loans.

How to find a mini loan with the help of Matchbanker

Various providers also offer mini-loans on numerous terms.

Because of this, various mini loan providers should be compared before applying.

This is where Matchbanker can help.

Matchbanker is an online credit comparison website. With the help of Matchbanker, you can compare different types of credit.

In our list you will find the best online loans with their characteristics, conditions, requirements, the payment time and the interest rate.

Our service is free of charge and without obligation. Matchbanker will help you find the best loan that suits your needs and desires.

After you have found a suitable offer in our list, you will be forwarded directly to the lender.

There the loan application can be submitted quickly, easily and online.

Can I get a mini loan without Schufa or despite Schufa?

The question of whether a mini loan is granted without Schufa is sometimes the first thought.

But is this possible?

Some providers also grant mini-loans without asking for the Schufa score. These include private lenders, among others.

Nevertheless, a credit check is always carried out. In Germany, this is mandatory before lending.

Other documents that indicate creditworthiness are required. This includes, for example, proof of income with regular income.

The acceptance rate for a mini loan is higher due to the relatively low amount.

As a result, there is a reduced risk of default and the creditworthiness is assessed differently than with normal installment loans.

Even with a negative Schufa entry, a mini loan can be obtained, so a mini loan is possible despite Schufa. However, this varies with the provider.

You can find out more about Schufa-free loans in our article Credit without Schufa.

Can a mini loan be received immediately online on the account - is an immediate payment possible?

In some cases, the money needs to be available as soon as possible. Then a quick transfer is important.

It is possible to get a mini loan immediately on the account.

The procedure for a mini loan can be completed entirely online due to the relatively small amount of money.

The mini loan can be applied for from both a laptop and a smartphone.

Usually, an approved loan is paid off within a few days. This can be up to 3 to 5 working days.

With some providers, the money can appear in the account on the same day. These providers usually obviously offer such payouts directly to the account.

The mini loan can be in the account within a few hours. This depends on the provider and the additional services.

If a quick payout is your first priority, then a lightning loan could also be the right choice.

What are the options?

Certain providers allow a payment to be made immediately to the account on the same day, provided that the loan application has been fully processed and checked before 1 p.m.

With some providers there is also the option of an express transfer, for example within an hour or a day.

In most cases, however, fees are incurred for such additional services.

By quickly comparing various mini-loans online, factors such as a transfer to the account are immediately taken into account and a suitable offer can be found.

Other chargeable additional services for a mini loan:

  • Express processing: Your application has priority and we process it preferentially, immediately after receipt of the application and the decision.
  • Installment payments: Possibility to extend the term.

Such additional services are voluntary and do not have to be booked. Always pay attention to which additional services you need.

Before taking out a mini loan with additional options, it is best to compare where an instant loan is priced. Depending on the offer, one or the other type of loan may make more sense.

Is it possible to apply for mini loans without proof of income?

Getting a mini loan without proof of income is a bit difficult in most cases.

However, this varies with the lender.

Often the proof of income is the only document that has to be presented as collateral in order to receive a mini loan.

Nevertheless, mini-loans can also be applied for from some providers without proof of income. For this, however, a good creditworthiness should be proven otherwise.

What alternative is there, for example?

If you have a low or irregular income, there is also the possibility of adding a second borrower to your loan application.

Having two borrowers and therefore two incomes increases creditworthiness and increases the likelihood of obtaining a loan.

In the event of insolvency, both borrowers are liable.

So if the first borrower is insolvent, the second borrower has to step in for the repayment.

Who are the providers of 500 euro mini-loans?

Mini loans are offered online by various lenders. However, not everyone also offers mini-loans.

Mini-loans are offered by some online lenders, such as CrediMax.

In our comparison list, you can use the sorting function to find providers and offers for mini-loans.

A comparison is also very important with mini-loans. Even if it is a relatively small sum of money, the costs should be accordingly reasonable.

By comparing, a cheap mini loan can be found that suits your needs.

A frequently asked loan amount for a mini loan is 500 euros. Therefore, many mini-loans can often be found with this amount.

Here it often makes sense to choose providers who specialize in these loan amounts and thus often offer the most favorable terms.

How does a mini loan from private work?

A mini loan can also be obtained from private. From private means that the lender is a private person and not a bank.

Often a loan from private is also called private to private, or P2P credit. P2P credit = peer-to-peer credit, i.e. from person to person.

With mini loans from private - generally with loans from private - you should always pay attention to the seriousness of the provider.

The loan from private can be a good option if applying to a bank is problematic due to creditworthiness. This can be an irregular income.

Therefore, a loan from private can also be a good alternative for the self-employed without a constant income.

Private individuals are more willing to lend despite having a poor credit rating.

Private individuals can ignore a moderate or poor Schufa score and nevertheless grant a loan.

Some private lenders have even specialized in granting mini-loans with moderate to poor credit bureau.

This is not possible for banks and other credit institutions in Germany, because they are legally obliged to conduct a Schufa query.

Therefore, many who want to borrow money with a lower credit rating turn to private individuals who offer Schufa-free credit.

It should be noted that these options often lead to significantly higher interest rates.

Overdraft facility and / or mini loan - what's the difference?

A disposition loan is often an alternative to a mini loan. An overdraft facility is also called an overdraft facility.

Read more about how an overdraft facility works here.

In the case of an overdraft facility, the bank grants the customer an overdraft on the current account.

It is therefore possible to overdraw the chart of accounts because a credit limit has been granted to the customer.

The possibility of overdrafting the current account is agreed between the bank and the customer up to a certain amount.

The limit for overdrafting the account, i.e. the possible amount, is given by the bank depending on the creditworthiness and a regular and monthly income.

Therefore, if a financial emergency arises, the account can become overdrawn.

Since the account can simply be overdrawn and thus fall into the red, overdraft facilities have a higher interest rate.

Debit interest is incurred when using the overdraft facility. These vary with the bank.

Even if an overdraft facility can be very practical, care should be taken not to overdraw the account too often, as high interest rates have to be paid.

It is possible at any time to balance the overdraft on the account.

Attention:

Since the account can simply be overdrawn, there is a risk of overdrawing the account and making it difficult to get out of the red. The interest burden keeps getting bigger and you pay a lot of money.

An overdraft facility must be applied for from the respective bank.

However, depending on the bank, such an application can take a little longer due to the examination.

In an acute emergency, a mini loan can be a quicker solution, because if it is not available, an overdraft facility must first be applied for.

The interest rates for a mini loan are in most cases lower than those for an overdraft facility.

Therefore, depending on the situation, the following should be compared:

The mini loan is a quick help and repayment can be made after just 30 days.

The borrower has clear rules and after repayment the issue can be closed without getting into a negative spiral.

Nevertheless, depending on your personal financial situation, it should be decided which option is more suitable and what sums of money are involved.

If an overdraft limit has already been set on your account, this can be used first.

Where does the mini loan originate?

The idea of ​​the mini loan comes from America. There is the PayDay Loan, which has also come to Great Britain, among other places.

PayDay Loan means payday loan and is, as the name suggests, a loan that is paid when the next wage is received.

In Germany, the mini loan differs slightly from this form, as sums of up to 3000 euros are granted and terms of up to 6 months are possible.

The PayDay Loan does not have a good reputation due to the very high interest rates and the unregulated market in America and England.

Such a thing cannot happen in Germany, since loans are regulated and monitored by the Federal Financial Supervisory Authority (BaFin).

Nevertheless, there are also differences in the level of interest in Germany.

Therefore, mini-loans should always be compared carefully in order not to pay too much interest.

Mini loan - example

Can Students Get Mini Loans?

A mini loan can also be obtained for students or trainees.

Nevertheless, a regular income is also a prerequisite here and should be at least 600 euros per month.

A steady income is an important condition in most cases.

Basically, it becomes difficult to get a mini loan with:

  • an ongoing bankruptcy process
  • if an affidavit was given
  • there is a wage attachment order or an arrest warrant against you

In general, when applying for a loan, you should always make sure that you can repay it with 100% security.

It can also be useful to apply for a special student loan, as this is adapted to the situation of the target group.

The mini loan in conclusion

After reading this article, you will be well aware of mini-loans.

It can be very helpful when a spontaneous financial bottleneck has to be overcome.

The most important points again briefly and succinctly summarized:

  • A mini loan includes small amounts, in most cases up to 3000 euros.
  • It is a short term of 30 days to a maximum of 6 months, hence the name short-term loan.
  • Can be compared and applied for quickly and easily online.
  • Getting a mini loan despite a moderate to poor Schufa score is possible due to the small amount of money.
  • Some lenders offer an instant transfer to the account. Often there are costs for such an express transfer due to the additional service.
  • As a rule, the proof of income is the most important document that must be submitted for the mini loan application.
  • Mini-loan from private can be an alternative if the bank is unlikely to grant a mini-loan.
  • The overdraft facility can be very helpful. However, the application takes time and high borrowing interest is charged.

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Credit expert Andreas Linde has been working in the financial industry since 2014. On Matchbanker, he writes about loans, refinancing, APR, interest rates, and anything finance-related.