Mini loans are small loans that can be used to pay for a holiday, buy an appliance or for other immediate uses. In fact, when a loan is requested it is not always aimed at obtaining a considerable amount: many times, the need for immediate liquidity responds to a need in the short term and not to a real economic difficulty. The picture is different for those who are instead forced to ask for reduced figures because they could not access larger sums, given the absence of adequate guarantees.
The small loans concern figures that do not exceed 10,000 euros as the maximum threshold that can be requested
But it is still rare to arrive at this figure: the most frequent searches for small online loans refer to amounts of 1,000, 2,000 or 5,000 euros. It is clear that these are small amounts with which to overcome an immediate need or need. The advantage of a mini loan is that, given its reduced amount, even the monthly installments will be fairly light, depending on the duration of the repayment period provided for by the repayment plan. Another aspect to consider is the interest rate, which could be advantageous, especially in the case of online financing, given that the institution that provides the sum is less exposed to the consumer.
So, even for small loans, all the classic elements of a loan must be considered, in order to evaluate their convenience: amount received, interest rate, rate of installments, weight of the single installment and, at the beginning of the loan, the guarantees required. In this regard, despite the small scale, even a mini-loan requires the presentation of the last pay slip or income tax return (especially for self-employed and temporary workers), which demonstrate the applicant’s financial stability and his ability to repay the loan without problems.
Mini-loans without payroll are aimed at those unable to present this important income document
In this case, alternative forms of guarantee must be used when these are accepted by the bank. Speaking of small loans, very substantial forms of collateral, such as a mortgage on a property, may not be suitable. Some possible solutions are instead the pledge of a valuable object, to be canceled when the refund is completed, or the signature of a third guarantor.