The mini-loan phenomenon is becoming more and more popular, but why has it become such a popular form of borrowing money so quickly and which people use it? The mini-loan is a phenomenon that came over from the United States, there it is called a ‘payday advance’ and originated from the need for people to be able to get an advance on their salary and to pay it back quickly. While this has been common practice in America for many years, the mini-loan has had a hard time in the Netherlands and could count on a lot of criticism. However, mini-loan is becoming increasingly popular.
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Borrowing a small amount up to the moment your salary is paid is a solution for many people because it is difficult at the end of the month to keep some money, bills sometimes have to be paid urgently and can no longer remain.
A payday loan direct lender as GAD Capital notes is also taken out to have some extra money in the pocket just before the holiday, now this plays a much smaller role in the Netherlands because almost everyone receives holiday pay which is not common in many other European countries. On the other hand, the Dutch are eager to travel and go on holiday more often, for example, it might be useful for a spring holiday or a winter sports holiday to have some extra pocket money.
Which amounts are popular to borrow
With a mini loan you can borrow an amount up to 800 euros, but this is not the amount that is most popular. Smaller amounts are generally borrowed, for example, a mini- loan of 200 euros is highly sought after, and the 400 euros is also a much in demand.
It often has to do with the possibility of people being able to repay the borrowed amount, so a small loan of 300 euros is easier to repay at the end of the month than a larger amount of 700 euros.
Why is the mini loan popular
Another advantage for a lot of people is that there is no testing at the Credit Registration Office, especially in these difficult economic times there is a large group of Dutch people who have received negative registration in one way or another.
This may be because someone loses his job or just that financially is not going well. Fortunately for this group of people, there is a possibility to borrow money without BKR. However, care must, of course, be taken to ensure that the loan can be paid after the agreed period, which the lender will pay close attention to.
What should you pay attention to when closing?
If you are going to apply for a mini loan, it is wise to take a good look at the extra costs that you have to make, are these optional or you cannot get away from it. There are also providers of a mini loan that have certain costs optional, this is mainly due to how quickly you want the loan amount on your account.