Amount of the loan
Small loans are available from a sum of 500 $. However, it is not worth it below this value because the effort and the costs are too high. Most small loans take place between 1,000 and 5,000 USD. There is no limit in itself. As the amount increases, the banks naturally want more collateral and a good credit rating.
The providers of the loan
Most banks offer a small loan. Depending on the sum of the loan and the term, the offers of the banks can vary, since many banks tend to offer larger loans with a long term. Individuals can also give small loans.
First and foremost, it is important to compare the conditions. The first way should therefore not only lead to the house bank. On the other hand, it is worth comparing the various offers. Here, attention should be paid to the term, the interest and the conditions. There can often be very large differences between the individual banks. Only by comparing can you be sure that the offer is the cheapest.
Interest role in borrowing
Interest always plays an important role in borrowing, since the borrowed money must also be repaid. The bank sometimes have very different interest rates at which they issue small loans. That is why interest rates have to be compared in particular. On the comparison pages, the interest is always given rather imprecisely. This is because interest rates depend on the credit rating.
For this reason, the interest on a small loan of 3,000 USD can vary between 3 and 6%. In this way, the banks additionally secure themselves in order to actually get their money back.
Running time – term of loan
A short term should be chosen for the repayment of a small loan, otherwise the interest is a high cost factor. The banks offer terms of between 12 and 72 months for the small loans. The longer the term, the smaller the monthly repayment installments. At the same time, this creates more costs because the rate is paid less. It is therefore advisable to pay off a small loan in higher installments within a short period of time.
Everyone who takes out a loan should be aware that the repayment begins immediately with the receipt of the money. The loan amount should therefore only be set as much money is actually needed. Small loans are a popular option, especially for students, so that they can start their everyday studies with ease. In addition to furnishing the home, other costs relating to your studies can also be covered. The alternative to the classic loan for students is the student loan. This has special conditions. In addition to students, small loans are also a good alternative for other people. They are used when there are financial bottlenecks or when large purchases are due.
How do you find the right small loan?
It is best to use various loan comparison portals on the Internet. In this way, the conditions can be compared simply and easily. The portals often show directly which is the best method. Otherwise, it is advisable to research the various banks to check the individual offers. The house bank should also be contacted. If the house bank has a worse offer than another bank, it is worth negotiating. The house bank often compromises in order to satisfy its customers.
One of the best known small loan providers is Cashper. Loans of up to USD 600 are granted in Austria in just a few minutes and the money is paid out immediately.
Small loans for entreprenUSDs and the self-employed
Banks often have different terms for business loans. Interest rates are sometimes very high. An alternative can then be the money from private assets. Numerous portals can be found on the Internet, on which entreprenUSDs can indicate their plans and convince interested private lenders. Among other things, this alternative can open up new business relationships and at the same time is an opportunity for more favorable terms for a loan.
Small loans are very popular in Austria. Banks are now also increasingly granting small amounts of credit. The sums are often between 1,000 and 5,000 USD. The term is usually 12 months, since longer periods of time have insufficient repayment rates. An important criterion when lending is also creditworthiness. If the creditworthiness is rather bad, it can take a while to find a bank that may then grant a loan at a high interest rate. In this case it is better to look for an alternative. Small loans should therefore be used in an emergency, since they are always associated with costs. If there is no other alternative, good advice should be given to find the right small loan for your own
The mini loan means
A new product on the USDopean financial market is the so-called mini loan. What has long been common in the USA is now also entering USDope and is becoming increasingly important on the financial market. After all, if you need a certain amount of money to bridge short-term, financial bottlenecks, but don’t want to apply for an installment loan right away, you are probably well served with a mini loan, also known as a micro loan or short-term loan.
Since the individual terms are not legally protected, it is sometimes difficult in practice to distinguish a mini loan from a classic installment loan. But there are clear distinguishing features that provide the consumer with good decision-making aids.
What is a mini loan?
A mini loan is actually only suitable for fulfilling smaller wishes, such as a new smartphone or tablet, or for bridging short-term financial bottlenecks. The mini loan is not suitable as interim financing for larger amounts, debt rescheduling or larger purchases.
How much is the loan?
First of all, the loan amount of a mini loan usually moves in a financial requirement up to a maximum of USD 1,500.00. This means that the loan amount is much lower than with an installment loan. The mini loan is actually only suitable to compensate for short-term payment difficulties. However, it is much cheaper in terms of interest than, for example, a overdraft facility loan from the house bank.
The extremely low loan amount also shortens the repayment period: the term is usually 7 to 62 days, but there are also providers who offer longer terms.
Who gets a mini loan?
Anyone wishing to apply for a mini loan in Austria must first be at least 18 years old. In addition, you must have a current income of at least USD 700.00 and have your permanent residence in Austria.
The trend towards short-term interim financing is currently offered almost exclusively by online financiers. With the help of various comparison portals you can and should compare the conditions online. You can also submit the corresponding loan application directly online to the provider of your choice.
How do I apply?
First of all, you should check the conditions such as loan amount, interest and flexibility of repayment on one of the online comparison portals. The yardstick for comparability should always be the effective annual interest rate. Once you have found the right provider, you can submit the application directly online. Using the so-called “VideoIdent procedure” it is possible to legitimize yourself within a few minutes. All you need is a PC with a webcam or a tablet or smartphone with the appropriate camera and of course your ID or passport. Your application will be approved within a very short time, as a rule you will receive your money within 24 hours. Depending on the amount of the loan, no KSV or Credit Bureau entry is even made.
What you should definitely pay attention to!
When you borrow money from a bank, you have to pay for this service, however simple it may be. You should keep that in mind: there is no free money. A mini loan can be used absolutely flexibly and the amount is available very quickly. Processing and account management fees often do not apply.
But even if the mini loan is about the same amount of credit, you should always pay the installments including the interest on time at the agreed due date. If you are in arrears with a mini loan regarding the repayment, the company will quickly claim the statutory default interest and dunning fees. Under certain circumstances, this can be quite expensive. If you fail to pay the installments in full, you will have to expect dunning and collection procedures. This also entails additional costs.
All in all, a mini loan is a good way to bridge short-term shortages and avoid expensive overdraft rates.