The mini loan can be requested by anyone for people between the ages of 21 and 70. You must have a minimum monthly net wage of $ 1000 or income from retirement. In recent years, mini loans and / or flash loans have been on the rise and more and more people seem to be closing down. This often involves a loan of a relatively small amount of money for a short period. It is mainly younger people who are only too happy to use this.
What is a Mini Loan / Flash Loan?
You can compare a mini loan with a normal loan, but there are 2 differences. You borrow a low amount, and no registration is made for that low amount. A mini loan is gradually becoming an increasingly popular form of loan. It is mainly characterized by the relatively small amounts. Amounts between 50 and 300 USD should be considered here. Another feature is the term of the loan. With a normal loan it is often a minimum of one year, but with a mini loan it is often about days. Most transit times are between 10 and 30 days. Finally, it is characteristic of a mini loan that you do not pay interest. Instead of interest you pay treatment costs and / or administration costs. Converted this way you pay a higher percentage of ‘interest’, it is only mentioned differently.
Why take out a mini loan?
A mini loan is often taken out by young people and is more meant as a short-term bridge. Most people take out the mini-loan at the end of the month to meet their obligations and then pay off this loan at the start of the new month. The loan is therefore not intended for a longer period. It is possible to borrow an amount from $ 100 to $ 1000. It is also possible to request a different amount of money from our other providers
What are the costs of taking out a mini loan?
The new legislation on taking out a loan requires lenders to comply with new rules. Previously, costs of 20% and more of the total loan amount were charged per mini loan. This is no longer possible and lenders can still calculate to a low percentage. This means that taking out a loan costs less than 1 USD. Of course a lender does not borrow money for free. A lender is trying to earn extra services. For example, do you want the money within 10 minutes than your bank account? Then you have to pay 6 USD, otherwise it will be there within 3 working days. A lender makes a profit through this type of service.
Is it safe?
The biggest risk of taking out a mini loan is not being able to pay back the loan within the specified period. When taking out the loan you agree to the conditions and the costs. You agree to repay the loan within a period. However, if this fails, administrative costs, or a fine, will be charged that can quickly add up. The risk for most people is that this becomes a structural problem and has to borrow money every month.
Terms and conditions of a mini loan.
There are a number of general conditions that apply when taking out a mini loan. You should be 21 years old when you take out the loan and you cannot take out a loan if you are in a state of bankruptcy or fail to pay back a loan. You should live in the Netherlands and be legally competent.
Other types of loans are:
A personal loan is a consumer credit form where the borrowed amount is paid out in one go and then repaid by the borrower in a fixed number of installments. Each term contains a repayment component and interest on the residual debt.
Revolving credit is a consumer credit form in which the loan sum can be fully or partially taken up again during the term. Interest is charged on the outstanding balance of the credit.