The classic variant for financing a new car or high-quality used vehicle is the car loan. These are usually relatively high loan amounts. For lower sums, for example for a repair, tuning measure and the purchase of an e-bike or used car, there is the so-called mini loan. In any case, it should be preferred to the overdraft on the bank account, at least if it is not foreseeable that the balance will be settled in the near future. Otherwise, the high interest rates are guaranteed to exceed the total cost of borrowing.
When do you speak of a mini loan?
Most financial institutions grant a mini loan up to an upper limit of 3.000 to 5.000 euros. In rare cases it goes up to 10.000 euros. An amount of 1.000 euros is usually set as the lower limit. It is a small consumer loan for private individuals. In contrast to the mini loan, when a trader takes out a small amount, it is called a micro loan. In general, a simplified credit check is carried out with regard to income and creditworthiness. Consumers usually get the permit without any problems, so that the money they need is available quickly. The mini loan is often used to replace the overdraft facility or urgently needed purchases.
Quick and uncomplicated taking out an online mini loan
The online intermediary CrediMaxx® offers mini loans from a sum of 300 euros. It also offers the advantage that borrowers receive their immediate payment within 24 hours. The well-known provider has been in the lending business since 2007. The mediation of mini loans is free of charge. Add-on products, including credit cards, insurance, and add-on contracts are not offered.
Potential borrowers simply fill out a free and non-binding application online. Within 20 minutes you will receive an individual offer for your personal loan. If customers are satisfied with this and would like to accept it, they only need to sign the loan agreement after the immediate approval. This is followed by the video identification process – in the comfort of your own home. After the data and creditworthiness have been checked by a financial expert, the instant loan is transferred to the desired bank account within 24 hours.
Recommended: Make a mini loan comparison
As with all types of loans, consumers should carefully study and compare mini loan offers. At best, one calculates the costs incurred before deciding on a specific offer. Depending on the financial institution, there are different interest rates. As a rule, however, borrowers come cheaper than when using the overdraft facility. In any loan comparison, the main focus should be on the APR. This is best suited for financial planning because it represents the total annual costs.
To borrow small amounts, borrowers only have to meet a few requirements:
- Residence and bank account in Germany
- sufficient creditworthiness
In principle, banks are obliged to carry out a credit check. Negative Schufa entries are usually not an obstacle. The reason for this is that the financial institutions set customer-friendly standards for low loan amounts. This means that they often turn a blind eye, even if the credit check has revealed a less than good score.
Most banks require proof of income. Due to the often extremely small amount that is available with a mini loan, monthly income of around 500 euros per month is often sufficient. There are even banks that ignore income altogether. Although it is possible to take out a mini loan from the house bank, experience has shown that online providers offer better conditions.
What should be considered when comparing loans?
It makes no difference whether you compare classic loans or mini loans, in general the following points should be considered:
- credibility of the credit intermediary
- neither preliminary nor processing costs are required
- Annual effective interest rate (see above)
Limited options for used car financing through car loans
The car loan is considered the best alternative for financing a vehicle. The bank receives a high level of security through the purchase of a car, it rewards this advantageous aspect with a lower interest rate. However, the age of the car plays a role. Depending on the financial institution, it is set at eight to twelve years. If an older vehicle such as a classic car has a relatively high value, the car loan is also granted.
If it is an older vehicle, there is a risk on the part of the bank that over time it will only be worth a few hundred euros. If the customer can no longer pay the installments, she is left with them. The chance of getting a loan for an older car increases if it is subject to a small depreciation. In addition, the shorter the agreed term, the more likely it is that the car loan will be approved.
Depending on the financial institution and the purchase price of the vehicle, it is possible to apply for a mini installment loan. On the negative side, it is not earmarked and is therefore always more expensive than a car loan. For this reason, the latter should be the first choice. If you do not receive this due to the advanced age of a car, you can use a mini loan.
Find more Financing options for the purchase of a used car are:
- The Balloon Funding
- The three-way financing
- Leasing of the used car
Balloon financing is usually associated with a relatively small number and amount of installments. While both are beneficial, borrowers often end up having to pay a large amount at once. There is also the alternative of ultimately returning the vehicle to the dealer.
The way food is Three-way financing works on the same principle. In addition to the two aforementioned options at the end of the loan, there is a third option with this type of financing: follow-up financing.
Are you planning to buy a new car and are you therefore looking for financing? Or should the modified baby and its attachments simply have the best possible insurance? Then ours Credit, financing, leasing, insurance & Co. categories exactly the right place to go for information. And also cheap financing for Accessory parts is there. Is the new one forged wheel, the planned Airride air suspension or the one you want foiling too expensive? Then a little one might help Financing in the process of implementing the modification on the vehicle. And also the topic Leasing or the vehicle sales are not neglected here. Just click through the posts and get the answer to your questions.
Of course, that wasn't the end of it!
tuningblog has countless posts on the topic Credit, financing, leasing, insurance & Co. in stock. Do you want to see them all? Just click HERE and look around. The following is an excerpt from the last contributions from this category: