Take out a small loan
Consumers often experience taking out a small loan differently than taking out a larger loan. By a small loan we mean loans up to $ 2,500. These loans are usually taken out in a few hours without further thinking about the costs of such a loan. Examples of this are, for example, the mini loan. An amount of up to $ 1,500 is borrowed for this. The advantage is that it is arranged quickly. And it is borrowing money without BKR testing. But with such advantages, there are of course also disadvantages. And the cons are solid. It is not without reason that the AFM (Netherlands Authority for the Financial Markets) warns when it comes to such small loans. The costs can even amount to hundreds of percent on an annual basis.
Closing challenges with a small loan
There are a number of factors that can sometimes go wrong with a small loan. The main one is underestimation. It is only a small loan, which is repaid in no time. Yet for many consumers, a “small loan” is a full monthly salary, and if you fall short of that now, how can it be fully repaid next month? The other costs also continue as usual.
With a small loan, it is just a good time to check the entire financial situation. How did the problem arise? Can you normally save some money per month and do you have a one-time need for money? Or is it a structural problem?
If it's a one-time need for money, taking out a small loan can be a great solution to solve the problem. For example, a small revolving credit that you can redeem when you have the money again.
Is it a structural problem? Then taking out a small loan may not be the best solution. You will receive an extra monthly installment. If you do not increase your income further, the challenge becomes very great to be able to continue to pay for everything.
Take out a small loan responsibly
Do you not need the small loan to solve structural problems? Then applying for a loan can be a solution. When you apply for your loan, we immediately check your entire financial situation. A review is done at the BKR (Credit Registration Office) and we check for you whether we can provide the loan responsibly. If this is the case, we will immediately look for you to take out an affordable loan. A loan that you take out with us should suit you if you want the best warm jacket on a cold day. Or that lovely pair of shoes. Your loan should fit you like a glove, and that's what we're going for.
Do you already have loans? We also include these in the assessment. For example, taking out a small loan can even benefit you in the long term.