The pros and cons of a mini-loan

A mini loan is a loan with a short term. Often it is between 7 and a maximum of 28 days. 

The amount to be borrowed is usually between € 50 and € 750 at a time. Such a mini loan is usually easy to close, sometimes the money is even after 10 minutes on your bank account. This is of course very useful when you need some extra money quickly.

In this article, I want to give more thought to the pros and cons of a mini-loan. As is also apparent from the above paragraph, a miniature loan is of course very easy and convenient at first glance. This can be closed quickly and they are small amounts, so that almost everyone can take out such a small loan.

Benefits of closing Mini Loan;

  1. Quickly borrow a few hundred euros, for example as an advance on income;
  2. Requesting a mini loan is quickly arranged and is often paid the same day;
  3. The costs of a mini loan are known in advance, you know where you stand;
  4. The mini loan can be requested quickly via the internet or SMS

In addition to these advantages, there are also some drawbacks to a mini-loan that certainly needs to be stopped;

  1. Generally high costs in relation to what you lend;
  2. Repaying the loan too late is very expensive;
  3. Pay attention to extra service costs.
  4. This differs completely per provider, for more details see the closing page

So a mini-loan has its advantages, but certainly also its disadvantages. On the one hand there is the ease and speed with which a mini-loan can be requested. Also the amount is often quickly on your account. On the other hand, these loans are expensive in relation to what you borrow. If you want to take out a mini loan, that is of course your right.

It can certainly be a godsend to quickly borrow some extra money for the holidays or when something important in the household breaks down which needs to be replaced quickly. However, I would like to emphasize that you are well aware in advance that these mini-loans also cost money.

What is perhaps even more important, make sure that when you take out a mini-loan, you can always pay it back within the set time limit!