It doesn’t always have to be big: that’s the motto of small loans. With it, purchases can be conveniently financed without having to take out a large loan.
A small loan, as the name already aptly reveals, is a loan with a not too high sum. It is difficult to determine which buzzer the limit is, but rather it is a smooth transition. A variety of things can be financed through a small loan: a refrigerator, a television or sometimes even a small car.
Small loan: possible with and without credit record
In principle, the small loan does not differ from the installment loan. That is exactly what it is. As with a normal loan, the credit record must be consulted for a small loan before you can get approval for the loan. The small loan is only granted if the borrower can show a positive credit record, that there is also sufficient creditworthiness. Although the small loan is not an oversized amount, the conditions are the same and the lender must be sure that this amount will flow back to him.
In the case of a small loan, there is also the option of applying for or receiving it without creating information. One shortcoming that arises with small loans without credit record is the interest rate, which usually increases dramatically with the method without credit record. However, this method should at least be considered.
Requirements for the small loan
Of course, the borrower will only get a small loan if the lender can be sure that he will get it back. It is usually sufficient to prove that you have a regular income that also covers the repayment of the loan. For unemployed people, the small loan is unfortunately not so easy to obtain, since a regular income is also an unconditional requirement for the small loan. Almost all banks require this. However, a small window remains open for the unemployed: if they have a clean school, this is already a good prerequisite for the small loan. If the unemployed can then provide the lender with appropriate security, it may well be that a small loan is also granted to the unemployed.
Small loan for the unemployed
For example, the car or a house or condominium can serve as security. However, a positive credit record is mandatory – without this, the small loan will not be granted. It is also not easy for working people to get a small loan with a negative credit record. Although this can balance itself out again with income, it can happen that some banks are not granted a small loan even to workers with negative credit record. Anyone looking for a small loan without credit record as an unemployed person will quickly reach its limits in this regard: For a small loan without credit record, an employment relationship or regular income is a prerequisite without which a small loan is not granted.
It is also worth comparing small loans
There are also various costs for small loans: among other things, commissions and various fees – not least, of course, interest. It is definitely worth comparing. Here you will find our free tool for comparison: Simply enter the amount and term and conveniently compare: to the comparison calculator.