You can request a payday loan via the internet. You can find several providers if you search for “payday loan” or “flash credit”. People often apply for a mini-loan if they need a relatively small amount in the short term. This may be the case if a large edition suddenly has to be made. Or if it has been an “expensive” month and at the end of the month before your salary is paid, you will run out of money. Then a mini loan can sometimes offer a solution. You can arrange the application via the internet and in most cases you will have the money in your account within 1 or 2 working days.
Apply for a payday advance online today
If you want to apply for a payday loan online, you start by filling in an application form on the lender’s website. Here you indicate how much you want to borrow and enter your personal details. You will then be asked to send a copy of your proof of identity. This can be done digitally in most cases. It is also often necessary that you make a test payment of 1 cent from the account where you want the amount deposited. This way the lender can see that this account is indeed in your name. A guarantee is then requested in most cases. This guarantee must be issued by someone who will take care of the payment if you do not repay the loan or do not repay it in time. A copy of the proof of ID must also be sent from this “guarantor”. If all this is arranged then the requested amount is usually transferred to your account within 1 or 2 working days.
Is a mini loan free?
Often on the websites where you can request a mini loan advertised with the comment that no interest has to be paid. But that does not mean that a mini loan does not cost anything. Because when you apply, administration costs are charged and these are often a lot higher than if you were to pay interest. But if you want to borrow money quickly, a mini-loan is often the best solution because in this way you can quickly get an amount deposited into your account with little hassle. When it comes to costs, there is another point to keep in mind. If you take out a mini loan, you must repay it within a relatively short period. If you do not do this or do it too late, considerable extra costs will be added and the loan will therefore no longer be free.
Additional conditions for applying for a mini loan
To be eligible for a mini-loan, there are in most cases additional conditions that you must meet. For example, the applicant must be at least 18 years old. You must also have a home address in the Netherlands. Your bank account into which the money is deposited must also be a Dutch account. Some lenders require that you have Dutch nationality and also require proof of income, either salary or benefits. You must also provide proof of this. Because this can all be done digitally, the application can usually be processed quickly. Before the digital age existed, all this had to be done by post and an application took much longer for that reason alone. Now there are websites that promise that you will get a definite answer about the granting of a mini loan the same day.
How high is a mini loan?
A mini loan is called so because it is a relatively small amount and because you have to pay it back within a short period of time. With a mini loan it is not the case that you can make a repayment of a few tens a month. As a rule, the amount must be repaid in one or at most two installments. The first term usually expires after 30 days, the second possibly after 60 days. This characterizes the purpose of the mini loan, it is a loan that is meant to bridge a small financial problem for a relatively short term. Many people who apply for a mini loan do this in order to bridge the term to the next salary payment if it has been an expensive month or if a major expense has to be made.
Why do people apply for a mini loan?
The main reason why people apply for a mini loan is that they cannot borrow money anywhere else in the short term. The mini-loan will be in your account within a day or at most two days and that is what applicants often want. They need money quickly and this is the only obvious solution. An additional advantage is that many providers of mini-loans do not check with the Credit Registration Office (BKR) in Tiel. People who already have multiple financial obligations that are registered with the BKR often no longer qualify for a loan at regular institutions. Then a mini loan is of course an attractive solution. Many people also like the fact that a mini-loan can be concluded fairly anonymously. Apart from the person who guarantees the repayment, nobody knows about the existence of the loan. Some people are ashamed of their financial problems and therefore do not want to go to a regular bank.
Are there risks associated with a mini loan?
The most important risk of taking out a mini loan is the repayment term. Many people do not realize that a 30-day period is so over. And you really have to pay back the loan on time, otherwise the additional costs will quickly add up. Moreover, some providers of mini-credit do not use overly friendly collection methods. It can happen that someone suddenly comes to the door and “picks up the money”. If you don’t have that, such a conversation can be extremely intimidating. Incidentally, a collection agency may not seize your income, a bailiff is required for this.
Some collection agencies threaten this, but they do not have this authority. They are also not allowed to take things from your house as compensation for the loan. The only thing a collection agency can do is insist on prompt payment. The collection costs may also not be exorbitantly high. If this does happen you can successfully protest against this. But the fact remains that a mini-loan is called a mini-loan for good reason and must therefore be repaid in the short term.
Is there an alternative to a mini loan?
The best alternative to taking out a mini-loan is of course to postpone the relevant issue. Some things can wait a while. If your smartphone breaks down, you may want a new one within a few days, but you realize that entire generations have grown up without such a cell phone and that a few days or even a few weeks is possible without it. You can wait much better until you can pay for a new phone yourself or until your subscription ends and you can pick out a new one. But if the purchase cannot be postponed, you might be able to borrow money from a friend or family member. This usually happens without an interest payment being charged, since the savings interest has been historically low for some time. In that case it is important to make good agreements about the repayment.
Appointments for borrowing money from someone you know
If you borrow money from a family member it is important to make good agreements about this. You may find it exaggerated, but also put it on paper. Note how much money has been borrowed and how many installments this amount will be reimbursed. It is also wise to record when the time limits expire. Both sign this form and make sure you both have an original copy. In this way you at least both know what has been agreed and you can also refer to it if there is any disagreement. Incidentally, it is not wise to regularly go to friends or family for a loan. This can lead to annoyance and friction and it can eventually cost you good contact. If you regularly run out of money, it might be an idea to take a critical look at your spending pattern.
When is a mini loan not a wise choice?
A mini loan is only sensible if you are sure that you can repay the borrowed amount within the specified period. It can therefore be a solution if, for example, you receive your salary a little later than usual. To bridge a week or two weeks if you really have no other financial resources for this, you can take out a mini loan. You pay the money back when your income comes in and the problem is solved. But if you are structurally short of money then a mini loan is not a good option. Because you will therefore have no money to repay the loan within the specified period. And then you pay a hefty fee for every day that you are late in paying back. The costs can rise considerably this way. If you already know in advance that repayment is going to be a problem then it is really not wise to apply for a mini loan.
Is a mini loan without BKR test a good option?
There are providers of mini loans that advertise with the promise that there is no BKR test. This is not the same as “nothing is looked at and everyone can borrow from us”. Often institutions that do not perform a BKR test have their own system for checking creditworthiness. It is also important whether you are known to an organization. If you have borrowed more often and paid back on time, you will get a loan sooner than if you are registered as a defaulter. If no BKR test is done, this means that the lender has no or less insight into your financial situation. That is a risk for him and actually also for you. Because if you already have several loans and other financial obligations, the question is whether it is wise to take out a new loan. And then another loan that must be repaid in the very short term. After all, your other obligations also continue. If, by taking out a mini loan, you only get deeper into the financial problems, then it is really better not to do it.
But what if I still need money urgently?
View what you need money for. Can you postpone the purchase or payment? For some payment obligations you can make an arrangement to do this in installments. Or maybe you can agree that you pay a claim when the holiday pay is paid or a year-end bonus. If the person who owes you money agrees, you do not have to take out a new loan. It is of course important to actually comply with the agreement made on the repayment because otherwise your creditworthiness will be compromised.
The mini loan is on the rise
The mini loan is a popular way of borrowing money. More and more people are discovering the convenience of it when they are tight. And actually there is nothing wrong with that. If you can repay the loan well in time, then it is a great way to bridge a period of somewhat less financial room. You can still buy that new TV or have the car repaired. If you repay the loan on time, there are no further costs involved and you are therefore often cheaper than if you would borrow from a bank or other financial institution. That’s why some people choose to take out a flash credit. It is also quickly arranged, which is also an advantage. If you make the application you will have your money within a few days. That can sometimes come out very well.
Compare providers and then make your choice
Do you want to take out a mini loan? Then compare providers and read carefully which conditions are applied. Also be sure to look at the costs that are calculated and the repayment term. Certainly do not borrow more than you need. Can you solve your financial problem with 500 euros? Certainly not double that. There is a great temptation to spend this amount on unnecessary expenses. But in the end, of course, it must be repaid within the stipulated period.