A minimum loan is a smaller loan that you can record through the web, either using your computer or your smartphone.
Although the different amounts may vary from supplier to provider, the minimum loan usually has it in common that it is generally not possible to borrow more than 20,000 kr.
You may also find that when you borrow from a provider for the first time, you can maximize a minimum loan of 5000 . This relatively low amount gives the provider some kind of security as they will ask you to settle the amount due before applying for another loan. Once you have paid your first loan, it’s usually a lot faster and easier to apply for another loan, as your information is already stored with the loan company.
Today, there are a lot of providers that offer you the opportunity to raise a small loan and when you sign a potential application or loan agreement online with the help of your NemID, you can be sure your information and data are in good hands. All reliable loan providers ensure all transfers by encryption and any loan agreement remains between you and your provider only.
What can a minimum amount be used for?
The good thing about a minimum loan is that it’s only imagination that limits what you want to spend the loan on.
Perhaps you’ve come out in a less lucky situation where you’re standing and missing money to cope with you for the rest of the month or maybe you’ve just come across an offer that’s too good to thank you no. Whatever you need to borrow, you can usually do this by using a minimum loan – as long as there is of course only a relatively small amount.
Many Danes already know how frustrating it is to borrow money through the bank. First of all, in most cases, a lot of documentation and paperwork must be done before the application can be processed. In addition, in many cases you also have to indicate what you want to borrow and it may end up limiting your options a lot. In fact, you can even find that a bank adviser directly rejects your loan application if they do not think you actually need the loan.
However, if you raise a minimum loan through an online loan company, never think about having to document how you want to spend the money. The only provider is interested in clarifying is that you are going to repay the loan. This means that you can submit a loan application electronically without having to indicate how you want to spend the money and it is a freedom that most of us appreciate.
How much can I borrow with a minimum loan?
Before you borrow a minimum loan online, you are probably interested in finding out exactly what you can borrow and whether it is better to respond to another loan type.
A minimum loan is usually a loan of less than DKK 20,000, but many loan providers may only let you borrow a few thousand. Therefore, you can use a smart loan calculator to help you find the right loan for your needs. As we mentioned earlier, it is also uncommon that most providers are only willing to lend you a small amount to start with.
No matter what, then, there are no big amounts when it comes to micro loans. Therefore, if you need to borrow more than described above, we recommend that you investigate your options to record another loan type. Keep in mind that all loans through the network and in the bank each have their advantages and disadvantages.
How fast do I get the money?
Because you only take a relatively low amount with a minimum loan, it is easier and faster for the provider to review your application. It also means that you can usually look forward to the relatively quick entry into your account – maybe even the same day you apply.
If it is important for you to get the money into your account quickly, it is recommended that you compare the different providers’ processing times. Please note, however, that these may vary depending on when the day you apply. The vast majority of providers have only opened in their daily lives and if you apply for the weekend there is a chance that they will not pay the money before Monday.
What does a minimum loan cost?
Even though there are many cheap online loans today, it is still important to keep in mind that it is not free to borrow money. You may find that a provider will give you an interest-free loan for a period of 30 days, after which you will have to pay interest as usual afterwards.
A minimum loan is a short-term loan, and therefore you may also find that the interest rate may be somewhat higher compared to other loan types. Therefore, it is important that you always make sure that you are able to comply with the short loan agreement and repay the loan on time. If you do not get this, it can end up with a really expensive loan in the end.
Here you will find providers of minimum loans
Now that we’ve got to know what the minimum loan amount really is and how much it is possible to borrow, you might also be interested in finding out where to borrow micro loans . As with all other loan types, a minimum loan is of course not free and there can be good money to save by making sure you get the lowest interest rate.
Where only a few online loan providers existed in the past, the market today has grown enormously. It can of course make your search a bit more inconceivable, but you can easily use this fact to your advantage. That means that you have even more prerequisites to finding the perfect and not least cheapest loan. Additionally, it’s super easy to apply for a minimum loan online today, simply by filling out a short loan form that can usually be approved within a few minutes.
Instead of spending time reviewing different providers and comparing their offers, there is usually plenty of time to save by using a loan calculator. In this way, you only search for loans that are relevant to you and your situation and you can click on to the provider directly where you can submit your loan application. If you need the loan at a glance, a loan calculator also has the advantage that you can compare the different payout times and therefore choose the fastest loan.
Benefits of a minimum loan
As with all other loan types online, the minimum loan offers a wealth of different benefits. However, if that is the perfect loan for you, depends on your situation and not least your loan wishes. For example, if you need a bigger loan for the payment of a holiday home, the micro loan is certainly not for you. Below we look at some of the absolutely significant benefits of incorporating a microphone online today.
- Smaller loan amount : With a minimum loan you can not borrow a loan of half a million, but it’s far from a disadvantage if you only need a few thousand dollars. With a microphone, you will never borrow more than the most necessary. Should you also need to borrow money after your first loan has been settled, this is usually also fully possible – and usually at a much lower interest rate.
- Short term : Most loan providers today require you to be able to repay the loan relatively quickly. That’s why you often and often will encounter a minimum of 30 days, where you only have a month to pay the amount due. If you need a longer running period and a more flexible loan, a minimum loan is certainly not for you, but if you want to become debt free in no time, the smaller loan is the perfect solution!
- Loans for what you want : Are you also tired of the bank interfering with how you want to spend the money? You do not have to bother when you raise a minimum loan. No loan provider or online creditor will bother you with a lot of questions about how to spend the money. As long as they can see that you have a reasonable economy and are able to repay the loan, they do not mix in what the money will go for.
- Everyone can join : Because with a minimum loan it is only a relatively small amount, most providers do not put the big demands on you. This means that most Danes today can participate. Unlike the larger types of loans that often and often require you to have a high fixed income and that you are over 25, it is often possible to find a minimum of 18 years without claiming your income. As long as you are not registered with RKI, you already have good prerequisites for being granted the loan today.
- Unsecured Loans : One of the absolute greatest benefits of this loan type is that you do not have to provide collateral for the loan. A minimum loan without security , therefore, acts as a direct shortcut to fast money without having to put your property or valuables in mortgages, which is the vast majority of us appreciate.
Disadvantages of a minimum loan
As you can read above, there are thus a wealth of benefits associated with raising a minimum loan. Having said that, however, it is also important to get into the various disadvantages and possible risks of taking the loan – especially if you are not responsible.
Therefore, always be aware of the following before you sign a loan contract:
- Consequences if you can not repay the loan : Many appreciate the possibility of repaying the loan within a relatively short period of time, but if this is not possible for you, it may end up with consequences. Firstly, you may end up being charged tougher interest rates and second, you may end up in financial difficulties if you do not comply with your payment agreement. Therefore, always take this into account before you borrow a short term.
- Interest rate can be high can be high : Since a micro-loan is to be redeemed within a relatively short period of time, usually one month, interest rates are usually higher than with other loan types. Although it is possible to find low interest rates, there are no minimum loans available on the market and it is therefore necessary to compare the different offers to ensure that you only apply for the cheap minimum loans .