A short-term loan is also called a mini-loan or short-term loan. It can be recommended if you only need additional cash for a short time. Since you only take up a small loan amount with a short loan, a mini loan is usually approved within a very short time. The prerequisite for this, however, is that you can prove to the lender that you can repay the loan amount.
The best short credit providers in the overview
Short-term loans are mainly known as a financing option for start-ups in emerging countries, but are also given to start-ups in Germany. This trend has now also spread to the private customer sector, with four lenders in Germany now granting short-term loans to private individuals. You can apply for a mini loan online without any red tape. You usually receive a binding loan approval within 24 hours. The interest rate depends on the term and the provider and can be between 8.95% and 14.90%. The maximum loan amount also varies between the different providers between 500 and 3000 USD. While new customers are granted a maximum loan amount of up to USD 500, as an existing customer you receive a loan of up to USD 3,000.
Characteristic features of a short credit
Characteristic features of a short-term loan are a relatively low loan amount and a short loan term of up to six months. If you decide to take out a short-term loan, you can choose from most financial institutions whether you want to contractually agree a fixed loan term with monthly installments or whether you negotiate a fixed interest rate. This is usually lower than for an installment or overdraft loan, so that you can repay the mini loan in one sum. You can take out a short-term loan with a term of 30 to a maximum of 180 days. Some providers grant you short-term loans even if you have a negative credit checker entry or if you have already taken out a loan with a relatively high loan amount. A credit checker entry is not a reason for rejecting a short-term loan because your personal credit checker score is decisive when deciding on a loan.
The essential characteristics of short loans at a glance
- short loan term of 1 – 6 months
- Money available within 24 hours
- unbureaucratic application
- Approval even with poor creditworthiness
A large number of the financial institutions that offer you a short-term loan offer additional options, such as an express payment or a payment in two installments. If you choose express payment as an additional service, the loan amount will be transferred to your checking account on the same day. Before choosing an extra option, you should be aware that it is chargeable. Another feature of a mini loan is that it is applied for, approved and processed online.
A short credit is recommended if you only need additional cash for a short period of time. The mini loan is ideal if, for example, you have to make purchases or expenditures that you have to pay in cash but do not have the financial means at your disposal or if you have to bridge the time until the next receipt of money with cash. A microcredit is also an option instead of choosing a path to the pawnshop. Although the interest rates of 8.95% and 13.90% may seem very high at first glance, the cost of a mini loan is manageable. If, for example, you apply for a short-term loan of USD 500 with a term of 30 days without additional options from the financier Good bank, you only pay USD 5.45 interest. A lightning credit is a short, convenient, non-bureaucratic and quick solution to get additional cash.
Short-term loan provider
A large number of different providers offer short-term loans online. The providers nice credit company, best bank and Good bank regularly occupy the top positions in tests. For example, on minikredit-träger.de has compared all short-term lenders.
nice credit company offers you a short-term loan of a maximum of 3000 USD. If you choose the express payment option, which is subject to a charge, the loan amount will be paid out within 24 hours. Applying for a short loan from nice credit company can be recommended if you want a longer term for your short loan. In the test on minikredit-träger.de, nice credit company was chosen as the provider with the best conditions and the longest loan terms.
Lender best bank offers you a short-term loan of 600 USD. In the test on minikredit- Provider.de, the high approval rate for applicants with a credit checker entry and the quick processing were particularly noticeable. The financing company best bank, which also offers you an express payment within 24 hours, came second in the test.
Good bank is the third place in the test on minikredit-träger.de. With Good bank you can apply for a short-term loan of 3000 USD. Good bank will only approve your application for a short-term loan if the creditworthiness is sufficient or using “Bonuses + Option”. Regardless of whether you apply for a microcredit with one of the three test winners or with another online provider, you should use the Internet to carry out a short loan comparison in order to always find the cheapest mini loan.
Advantages and disadvantages of a short loan
A short credit offers you numerous advantages that cannot be ignored, but also some disadvantages. Noteworthy advantages are the uncomplicated application via the Internet, the immediate decision about the approval or rejection of your loan application, the quick processing, the possibility to receive the money on the same day by flash transfer, the approval of a negative credit checker entry and that your credit application has no impact from your credit checker Score. Disadvantages include the high fees for additional services, the relatively short term until the repayment is due, the calculation of additional processing fees for express payments and the high interest rates.
The requirements for a short loan
In order for a short credit to be granted to you, several requirements must be met. These can vary with the different providers. In order to receive a short-term loan, you must be at least 18 years old. At best bank, you must have reached the age of 21. In addition, you must be able to prove a minimum monthly income of 600 USD and your place of residence must be in Germany. However, you don’t just get a microcredit if you are a full-time worker. The financiers Good bank and best bank also offer students and trainees mini loans. As a student or trainee, you can use a short-term loan to overcome a financial bottleneck without having to take out a long-term loan for students or trainees. The approval of a short-term loan is excluded if you have a warrant for arrest, a judicial wage garnishment process has been ordered, if you have taken the affidavit or have applied for bankruptcy. Likewise, people without regular income and the unemployed do not receive a short-term loan, because providers in this group of people feel that the default risk is too high. You should therefore only apply for a short-term loan if you receive a regular salary.
What else you should know about the short loan
Most borrowers choose short-term loans if there is only a short period of time to overcome a financial shortage. You should be aware that a short loan, including the additional options, is not cheap. You should carefully consider whether you actually need the additional services offered.