When it comes to borrowing in the context of an investment or a short-term need for money, it does not always have to be the same amount of credit. Loan seekers, for example, who have a financial shortage or want to buy a used car, very often require a loan amount below the 10,000 euro limit. In the credit jargon loans of this kind are also called “small loan”.
The inclusion of a small loan can be helpful and useful for the borrower in many life situations, with many banks offering a microcredit from just € 500.00 or € 1,000.00.
What is meant by the term “small loan”?
The small loan is a typical installment loan, which is however limited in terms of its loan amount. What loan amounts are offered as small loans and what not, that each bank can decide freely for their in-house lending business. As a rule, however, the limits are either 5,000.00 or 10,000.00 euros. Small loans are always granted blankly or without the provision of special collateral. For the borrower, the inclusion of a small loan is very straightforward, whereby the processes around the application and payment are also slimmer than, for example, in a loan in the amount of 20,000.00 euros. Small loans are subject to the PangV, which is why every lender is obliged to inform the borrower in writing of the annual percentage rate of charge. Up to which term a bank offers a loan as a small loan, is also determined completely individually by the respective credit institution. Many banks offer a small loan, for example, for a term of 36, 60 or even 84 months.
We helps compare offers
When taking a small loan you should of course compare different offers. This is important in order to find a lender who offers the lowest possible interest rate for the respective combination of loan amount, term and installment. The bid comparison need not be carried out by the loan seeker goes with his concerns from bank to bank. Such approaches have long since become a thing of the past in the credit comparison. Numerous online comparison portals offer excellent assistance in finding the cheapest interest rate. The loan calculator from us determines the current conditions of more than 40 banks, so that you can get with just a few mouse clicks a meaningful comparison. The loan amounts and terms can be chosen individually, so that you can tailor the offers very well on the personal loan project. About the results of the loan calculator you get immediately in the application, so loan comparison24 really provides great support.
Requirements for a small loan
Anyone who wants to take out a small loan, of course, must meet some criteria for a positive credit decision. Although the loan amounts are lower and in some cases are € 1,000.00 or less, most banks are subject to the general conditions for the granting of installment loans for a small loan. The borrower must therefore be at least 18 years old and have a fixed and regular income. In addition, his monthly incomes and expenses must enable him to meet the agreed loan rate without any problems. As part of the credit check, one speaks here of the so-called “debt servicing capacity”. Most banks also carry out a review of Private credit for a small loan and demand a positive result here.
What must be considered when taking a small loan?
When borrowing a small loan, the borrower has to pay a lot of attention. First of all, it is important to pay attention to an unrestricted special repayment right. This is important so that the microcredit can be fully repaid at any time, regardless of the monthly rate. For the borrower, this results in an important flexibility, which allows, for example, the rescheduling of a new loan with a lower interest rate. To this end, the borrower should pay attention to whether it is offered in the context of lending a residual loan or even residual debt insurance. Depending on which risks are to be hedged, such insurances are not necessarily cheap and can quickly drive up the costs of the desired small loan. Of course, the conclusion of such insurance may be correct and important, for example, if the borrower wants to secure as a sole earner his family, with a small loan amount of 1,000.00 or even 2,000.00 euros, the need to doubt, however. You should therefore read the loan agreement thoroughly and possibly several times. Even hidden hidden costs must be respected urgently, not least because of the recent BGH judgments regarding the processing fees. However, a look at the effective annual interest rate already helps here. If there is a large difference compared to the nominal credit condition, this is always an indication of additional costs.
Conditions for small loan
The conditions for a small loan are similar to the general conditions for installment loans, so that loan seekers can currently find conditions in the range of 2.70 to 3.70%. These conditions are, however, usually dependent on creditworthiness and are therefore only offered if internal bank conditions are met. In the context of the loan application, therefore, there are often deviations, so that the original top condition of 2.79%, for example, rises to 3.29%. As far as the term of the loan is concerned, most of the conditions are runtime-independent. In some cases, extremely short maturities may result in lower terms (“fast payback bonus”), while extremely long maturities, such as 120 months, may increase their stamina.
Small loan from Norisbank
Norisbank is a “direct banking subsidiary” of Deutsche Bank and has successfully established itself in the market for online loans in recent years. Small loans are currently offered at Norisbank at a credit-related interest rate of 3.70% – 7.80%. The loan amount at Norisbank must be at least € 2,500.00. In the maturity range, Norisbank is very flexible at 12 to 84 months.
Small loan from Santander Bank
The Santander Consumer Bank has its German headquarters in Mönchengladbach and is one hundred percent a subsidiary of Banco Santander SA from Spain. Santander Bank has already made a name for itself in the German credit market a few years ago. The Santander Bank stands for favorable conditions and is known for numerous cooperations with German retail chains. For a small loan Santander Bank currently offers an annual percentage rate i. H. v. 2.69%. This is a non-credit-worthy fixed rate, which is offered from a loan amount of 1,000.00 euros.
Small loan of credit private
With credit private it concerns a credit offer of the well-known on-line credit market place. The Smava team offers small loans starting at an interest rate of 0.99%, whereby such a condition always depends on two factors. On the one hand, the interest rate is creditworthiness dependent and on the other hand, private investors must be found who agree to the loan business to this condition. Especially for the self-employed, the credit derivative is a great way to obtain a fair microcredit relatively easily.
Find the right small loan with us
The inclusion of a small loan with a loan amount of up to € 10,000.00 can help the loan seeker in numerous life situations. Investments can currently be made very well with the help of a small loan, which is mainly due to the lower interest rates and the excellent comparison options of the Internet. With the help of the loan calculator you can find the cheapest offer very quickly. In the context of the loan application one should pay attention also to a small credit on special repayment possibilities and to look exactly on the effective annual interest. This reduces the risk of concluding a loan agreement, which may involve unwanted additional costs.