The dishwasher is broken? The car has to go to the workshop? Damage to the house requires a craftsman? In these and other cases, liquidity is needed swiftly, which is too slow for conventional banks. A mini loan from specialist providers can then be the solution.
Urgent repairs can not wait until a bank has lent itself to lending. Despite all promises regarding a fast processing time, it still takes 1-2 weeks from the initial application to the crediting of a installment loan on your own account. If the bank asks questions, or if an applicant is employed on an independent or temporary basis, it can take even longer – if there is a commitment at all.
Above all, consumers should have two requirements for a loan for repairs of all kinds: Firstly, the loan should be available quickly, secondly, the application should be made straightforward. A small loan from specialist providers meets both requirements.
With these loans, depending on the provider and the starting position, loan amounts of a few hundred euros up to sums in the middle four-digit range are possible. The applications are extremely straightforward: If ever a proof of income must be provided, this is done by uploading a photo of the salary slip, tax advice, etc. With a smartphone camera, this takes less than a minute.
The remainder of the credit check is carried out automatically with a mini credit by asking scores from credit bureaus such as the SCHUFA. Here, the requirements are significantly lower than in conventional banking: A return debit due to lack of coverage and z. T. even negative SCHUFA entries do not necessarily lead to a rejection. The chance of a commitment is thus much higher – even if the budget is already tight and recently one or the other bill was not paid on time.
A small loan from suitable providers can provide liquidity very quickly. The fastest providers use a combination of electronic credit check, identification by videoident and flash transfer. With such express payments, a loan applied for until noon can be available on the same account on its own account.
An alternative to small loans are overdraft facilities. If such a loan has already been set up, it can be arranged very easily. However, convenience comes at a price: on average, banks still charge ten percent interest and more for their credit line. Once again, it will be considerably more expensive if the credit line agreed with the bank is overdrawn. For such a tolerated overdraft attract 15 percent interest and more. A small loan can be significantly cheaper here.
A credit line also carries the risk of permanent and therefore problematic debt. The reason is that unlike a mini loan that is divided into 1-3 installments, there are no fixed repayment obligations. Often enough, the credit line is then permanently exhausted – with the risk of someday slip into the tolerated overdraft and then risk next to high interest and return debit or even a Kontongündigung.