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Difference mini loan small loan amounts

If you search the internet for offers of smaller loan amounts, you will come across various terms. There are two that are particularly common: mini-credit and micro-credit . At first glance, it is not necessarily clear what the difference between the two is. Is there one at all or is it ultimately the same financing product?? We would like to briefly examine this for you afterwards.

Smooth transitions between mini and small loans

Smooth transitions between mini and small loans

As numerous as these two terms can be found, their definitions are just as diverse. In any case, these are not specified. There are no precise requirements as to which requirements a mini or small loan must meet. Both have in common that it concerns smaller loan amounts that would not be granted with normal installment loans.

A small loan is basically a normal installment loan. Only the payout volume is not quite as high. In some places ceilings of 10,000 USD are mentioned, elsewhere only 5,000 USD. In terms of level, the amounts are always lower than those of larger-scale installment loans. Otherwise terms and interest rates will be set as usual. However, small loans get less collateral due to the lower loan. Most providers already need proof of a regular income and positive Credit bureau information. In addition, you should be of legal age and have a permanent residence in Germany to be eligible for a small loan.

Small loans are often particularly flexible when it comes to repayment. You can use unscheduled repayment options to repay parts of the loan, for example.

When do we start talking about a mini loan?

When do we start talking about a mini loan?

As I said, there are no fixed terms for these terms. Somewhat more special offers for mini loans have emerged in recent years. These let the term appear more selective. A mini loan is basically a small loan with a maximum payout volume of 1500 USD. From this limit, many providers no longer speak of a mini loan. The repayment models are also different. A mini loan is considered a short loan to bridge the next salary. The terms are, for example, 30 days and the loan amount is repaid immediately after expiry. Rate options are usually chargeable.

A mini loan can therefore be seen as a special form of small loan. Ultimately, you should always read exactly what the individual provider means in detail. At least in the case of mini-loans, certain standards have now been established, which has made the offers easy to compare.

What is special about such loans?

What is special about such loans?

Since these are relatively small loan amounts, these can be applied for in a significantly less bureaucratic manner. Many of the offers are now handled entirely online. This saves providers, for example, personnel costs, which means that the loans can be offered with better conditions. By applying via the Internet, the loan commitments are granted much faster. The loan amount can also be paid out in just a few working days. With mini loans, the transfer can even be made within 24 hours. In most cases, you have to pay extra for such a service.