More and more often you hear it in the news all around financial topics: Online mini-loans are becoming an increasingly well-known and interesting alternative compared to ‘normal’ loans. But what is Online Mini-Loan actually? Credit institution Oliver Twist, the specialist for this type of loan, answers the most important questions
What is the difference between an online mini loan and normal credit?
As the name suggests, an online mini loan can easily be applied for over the internet. It is therefore no longer necessary to go to the bank and to take account of often impractical opening times. Of course, an application via the Internet is just as safe: the entire application is made in a secure and encrypted Internet environment, so that your personal information is only visible to the lender.
What amount can be applied for an online mini loan?
With a mini-loan, it is possible to lend a smaller amount of money up to 600 €, in contrast to traditional loans, where the amount of money often moves in the five- to six-figure range.
Why can you borrow a maximum of 600 €?
The decisive advantage is the manageable costs. For a mini loan, you can choose between a two- or four-week term. Sample calculation: For a four-week online mini-loan of up to € 600, the interest rate is 13.9% per year. The final amount to be repaid then increases by a maximum of € 6.45. Here, the lower the amount of money borrowed, the lower the accrued interest.
When will the online mini loan be paid out?
Normally, the processing time is around one week. However, since the money is often directly necessary, such as in an emergency, there are also extra services for reduced processing time and fast payout the following day.
When does the loan have to be repaid?
Depending on the chosen term of the online mini loan will be repaid after 15 or 30 days. In addition, customers can choose from a repayment in one or two installments so that the costs incurred remain clear.
I have a Schufa entry. Can I still apply for an online mini loan?
In general, every person – even with a Schufa entry – can apply for an online mini-loan from Oliver Twist. All applications are then checked by our team and processed as quickly as possible.