Small Payday Loan – Definition: What is a small loan?

What is a small payday loan?

What is a small payday loan?

The term bagatell means trifle. A small payday loan is therefore a small payday loan with a maximum payout of 200 euros . Small credits are used in most cases to bridge a small financial bottleneck. Usually, the small payday loan is a consumer loan, which can be used for all purposes. In many cases the small payday loan is used to balance the current account, if this is in the minus or dispo. Smaller purchases are possible with this loan. Businesses and the self-employed can not apply for a small payday loan.

 

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  • What is a small payday loan?
  • Conditions and conditions
  • What are the risks and benefits of a small payday loan?
  • What is the significance of creditworthiness with regard to a de minimis loan?

Conditions and conditions

Conditions and conditions

Basically, a small payday loan can be applied for at almost any bank. Building societies also offer this method. As with a normal or higher loan, the lender will need to do a credit check and make a shuffle call. In the case of a negative credit rating or entries in the Bank, it may happen that no trivial loan is approved. The creditworthiness is defined by an indefinite employment relationship, but at least an employment relationship for three months . For self-employed persons, it is not possible to apply for a de minimis loan. For employees, the last three pay slips are sufficient . A repayment is made in small and fixed installments. A fixed rate is required.

What are the risks and benefits of a small payday loan?

What are the risks and benefits of a small payday loan?

The big advantage is the fast processing and availability of a small payday loan . The legal limit of 200 euros is for private persons to compensate or for smaller purchases interesting. Due to the low loan amount, no collateral is required, as is the rule with high loan amounts. Another advantage is the flexibly configurable repayment and the small fixed installments that are agreed in advance. A short term is also important for individuals. It is not possible to apply for a de minimis loan for companies and traders, as the financial framework of the loan is not meaningful for economic purposes.

What is the significance of creditworthiness with regard to a loan?

What is the significance of creditworthiness with regard to a loan?

A de minimis loan is approved if there is a regular income. In many cases, salary statements are required. This depends on the credit balance of the customer. In some cases a Bank inquiry and Bankeinträge can be the result. The credit rating is assessed differently by each bank . Regular income and other loans can affect your credit rating. A guarantee is possible with a small payday loan. This increases the likelihood of getting the loan. A credit default risk exists for the bank only if the credit rating is not positive. If the credit rating is negative and the bank considers a credit default risk to be possible, it will result in the loan being rejected. The requirements for a small payday loan are very different. In some cases, forms are requested, sometimes a look at the customer’s current account is enough to determine whether a loan can be approved.

 

If you need short-term money to bridge a financial bottleneck or pay a specific bill on time, make the right choice with a micro loan. The provider works reputable, fast and reliable, so you receive the feedback and possibly also the payment on the day of your request. A bank loan is recommended due to the many disadvantages nowadays only for large investments.

 

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