Mini loan offer: costs, features and product details

The Berlin-based company Neofunding can without a doubt be called the pioneer in mini-credits / short-term loans in Germany. Already in 2012, at a time when the granting of loans was a priority banking business, the company, founded by Manuel Prenzel and still running today, was the first and for a long time the only provider of mini loans. Thus, the Neofunding mini-credit offering enjoys a high level of awareness and reputation among consumers, which is reflected in the repeated winning the Banking Check Award in Berteich short-term loans. During the launch phase of its lending business, Neofunding received an official certificate from the Dufol on the issue of short-term subordinated loans. Since 2013, Neofunding AG has been cooperating with the Munich-based net-m private bank 1891 AG, ​​which has given it the legally secure option to settle the deposit-taking business since then. The company operates with its Neofunding mini-loan offer exclusively in Germany and is also the operator of the credit platform Creditmore, which lends small loans to self-employed.

The Neofunding mini loan offer

The Neofunding mini loan offer

As a pioneer of the mini-credit market in Germany, Neofunding offers its customers as well as its current competitors short-term credits of between € 100 and € 3,000 (for existing customers) at a current effective interest rate of currently 13.9%. Thus, Neofunding is after the interest rate cut at Viloan with its offer for a small loan at the effective annual interest rate the most expensive mini loan provider in Germany. An instant loan taken out at Neofunding can be “stretched” up to a maximum of 60 days on request (additional fee-based option!). It is also possible to repay the microcredit taken out in 1, 2 or 3 monthly installments (also subject to a fee). As an existing customer, the loan can also be paid in up to 6 monthly installments.

The Neofunding mini loan offer at a glance 

  • Mini loan from 100 € to a maximum of 3000 €
  • Credit certificate allows credit even with a burdened private credit
  • 2-rate options allows up to 60 days to run
  • Express option allows you to receive the loan on the same day
  • 3-rate option for new customers
  • 6-rate option for existing customers 
  • Cash and Go option for existing customers

Neofunding Credit: Requirements & Services

Neofunding Credit: Requirements & Services

As with any other short-term credit provider, the Neofunding mini-credit offer also requires a few points when it comes to granting potential buyers such a short-term loan. So also applies to Neofunding that you have the age of 18 completed, of course, have a registered residence in Germany and ultimately should prove a regular income. On the other hand, it is unclear in which minimum amount Neofunding has to prove a regular income. Due to some blog articles at Neofunding, however, the hurdle does not seem to be that high, because Neofunding offers its mini-credit to students as well as apprentices and retirees, provided the other requirements are met. Consequently, the Neofunding mini loan offer is also interesting for those target groups who would have a hard time getting a loan in a classic bank.  

If these conditions are met and the decision has been made to accept the loan offer, you as a customer have the opportunity to benefit from the Neofunding mini loan offer as follows:

Online requirement of Neofunding short term loan

At Neofunding, the entire process of applying for credit takes place online. For this purpose, all credit interested parties on the website of Neofunding an online loan calculator available. By means of this credit calculator you enter your desired loan amount and the desired term. You will immediately receive the calculation of the total cost of the loan including interest. If the result of the loan calculator tells you, you can apply for the selected loan by pressing the button “Apply now”. As a result, personal information is requested.

Since the entire application process for Neofunding short-term credit is automated, processing is very fast. Once all the required documents have been sent to Neofunding via e-mail, the legitimation is still in place, which can be carried out quite quickly and simply using the Video-ID procedure of Web-ID. If the application for a short-term Neofunding loan is completed before 2 pm on working days, the approved loan will be transferred on the same day.

The cost of Neofunding mini loan

The cost of Neofunding mini loan

As mentioned earlier, Neofunding’s lending offer is at the upper end of the effective annual interest rate of 13.9%, but to date still the market interest rate level for mini-loans. This results in the following calculation example for a Neofunding loan:

Loan amount: 600,00 € Credit term: 30 days interest due: 6, 54 € Total repayment amount: 606.54 Annual percentage rate: 13.9%

With this interest rate, Neofunding’s mini loan is equal to that of competitor Viloan in terms of pure borrowing costs.

The costs at a glance

service costs
registration free
credit request free
processing free
Guarantee optional
Faster processing optional
early repayment free
Effective interest rate 13.90%
Debt interest rate tied pa 13.90%
Reminder costs in case of default 9 EUR

If the service extras offered are used, these costs will be deducted from the credit, which will increase the loan repayment amount by the corresponding amount. However, there are no exceptions that Neofunding incurs no EXTRA COST!

The quick loan: its features as well as advantages and disadvantages

There are undoubtedly situations in life where decisions need to be made quickly. So also in financial matters such as a necessary borrowing with the help of a quick loan. This is particularly true when it comes to quickly and easily solve an unexpected financial special situation. Be it that it comes to a water damage to the house quickly, but costly or to repair the urgently needed vehicle. If an unexpected bill pops up, it is not unusual for the monthly financial planning to quickly get out of hand. The financial problems are there and a quick fix will be needed. Those who can not resort to savings in such situations inevitably face the decision to take out a loan. Sometimes these unexpected costs are incurred at very short notice, so here is the above-mentioned quick loan ago. The question is, what is a quick loan and where can I get this special loan?

Key features of a quick loan

Key features of a quick loan

The so-called quick loan is quite a term that can be found quite often in the vastness of the Internet. But an exact definition of what the typical characteristics of such a loan are is in short supply. This is simply because this term does not actually exist in the regular language of banks. Only with the advent of the Internet did the quick loan celebrate its “birth”. Thus, the term quick loan usually appears in the form of the “fast online loan” or even “quick loan with immediate payment” on. Also the variant as Expresscredit is to be found frequently. The ingenuity of the credit industry is therefore almost unlimited in the creation of loan terms.

The quick loan in its definition is quite simple. Because the quick loan is basically an online variant of the classic installment loan of a classic bank and absolutely comparable to the TactCredit. This means that in the base the approved loan amount – plus interest – with fixed monthly amounts must be repaid. Similarly, the amount and duration of the quick loan are comparable to a normal installment loan. This means that both rate and duration can be flexibly designed. The minimum term for a short-term loan, like the classic installment loan, is also 12 months in most cases.

The most serious difference and thus responsible for the title “quick loan ” is the entire processing, granting and disbursement process. Because exactly in this credit process, the term “fast” should be clear and unambiguous. For some banks which offer “quick loans”, these loans differ from the classic installment loans also in terms of the minimum loan amount. For example, banks are offering these short-term loans from as little as 1,500 euros minimum loan amount. However, the installment loan from the same bank is usually only available from 3,000 euros. However, this separation between the two types of credit depends on the lending bank and is in no way part of a binding definition of the quick loan.

Advantages of a quick loan

Advantages of a quick loan

Who needs money for whatever reason, fast and usually within 48 to a maximum of 72 hours, usually has two things! Infinite time and connected, anything but a long patience! Long paths, long consultations and long waiting times when processing loan applications at the bank are not very helpful in such, rarely postponed, financial emergencies. Anyone who is in such a financially precarious situation needs immediate support. The best way to do this is to provide easy financial help from providers whose loan models are geared precisely to such credit customers and their borrowing needs. First point of contact for a quick loan assistance, here are the modern direct banks. These banks offer experience according to real fast loans. Because direct banks work more effectively, which means that almost everything is processed online. Far away from the sluggishness and complicated structure of a classic house bank.

Those who apply for a quick loan online with these modern, structurally-optimized direct banks usually know within a few minutes in a binding form whether the loan application is approved or not. Because behind the application submitted online, a fully automated IT process (thanks to the appropriate software!). This concerns both the loan processing and the required credit check. If the loan application has been approved promptly, it is usually possible to dispose of the loan amount within two to three working days. Provided the bank has been provided with all necessary documents and evidence to prepare the loan agreement. At best, if you have a current account with the lending direct bank, the likelihood of having the requested and approved loan amount within 24 hours is very high. Some direct banks say this to existing customers who apply for a quick loan, even expressly without additional costs!

Disadvantages of a quick loan

Disadvantages of a quick loan

This form of loan does not really have a real disadvantage. Except for the fact that such loans are granted almost exclusively through the so-called online banks or direct banks. A consultation, as one knows it perhaps from the own classical branch bank, is often not offered in this form. In addition, each applicant should be aware of a quick loan that, due to the fully automated credit check, there is no individual credit check of the borrower. If the credit information retrieved online from private credit and / or other credit reporting agencies such as Creditreform, Arvato-InfoScore, etc., displays only the slightest negative attribute, the system automatically terminates the processing and sends a rejection of the quick loan to the borrower due to a lack of creditworthiness.

Often offered on the Internet fast loan without private credit exists only conditionally. The quick loan without private credit is therefore always to be considered with a thoroughly required critical objectivity. Here, the mini loan with its various options of express processing and flash transfer, as they offer some of the mini loan providers we have presented, is an exception. In this respect, in the case of a mini loan or microcredit using the said service options, it is quite possible to speak of a quick loan. With the restriction that on the one hand with a “fast” mini credit the loan amount is limited and on the other hand the needed “speed” can be achieved only by acquisition of appropriate service options.

Fundamentals of the quick loan

Fundamentals of the quick loan

As with any credit business, the short-term loan is usually synonymous with a credit agreement online. Its basis is the direct input of all relevant credit data into an online loan form. As a result, the online provision of required documents by the borrower is necessary. The faster these necessary documents (salary statements, employment contract, account statements, identity document) are sent online as scanned copies of the bank, the faster the loan processing takes place. H ere is true with most providers for a quick loan for same-day processing include submission of documents to weekdays until 12 pm = same-day processing. If successful, the money will be paid out within 24 hours. In this respect, you should always have all necessary documents ready immediately. Which documents are required can be found on the websites of corresponding fast loan providers as credit information. He who takes this to heart, can certainly face any financial special situations with a certain serenity.

Editors’ tips on the topic “providers of quick loans”

Editors

Anyone who needs a loan within a very short time, for example, if an invoice has to be paid immediately or an urgent repair has to be carried out and this can not be paid from the currently available financial own funds, has to decide to use a loan for this purpose. But before you quickly resort to the often expensive credit line, there are certainly attractive alternatives to this discretionary credit.