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.

What is a lightning loan as well as the advantages as well as disadvantages

Who speaks of a lightning loan or hears of it, this certainly not in relation to the natural spectacle of a lightning connection. Nevertheless, the connection of the word lightning with the notion of credit is not necessarily outrageous. The lightning loan basically expresses something that can be expected from such a loan in a financial emergency that requires a quick fix. The lightning fast availability of a requested loan. For example, if you receive an unexpected short-term bill that does not allow you to wait until the next salary arrives, you are a classic candidate for such a lightning loan. Especially if no alternative financial solutions such as reserves or the credit line can be used for this purpose.

Key features of a lightning loan

Key features of a lightning loan

If it has to go fast, then usually only a lightning loan, in question. Frequently, such a loan   Also called as a quick loan and / or instant loan. For a conventional installment loan, which one knows from his house bank or just from the Internet, is normally anything but fast. In addition, conventional installment loans with a negative private credit entry can hardly be applied for successfully. Lightning loans are then considered necessary when it really has to go fast. In addition, a timely payment to the borrower should be made without the greatest possible bureaucracy. However, it is necessary for this to be done on the part of the applicant. Above all, this requires the provision of required credit documents (salary statements, etc.). These must then also be made available to the lender immediately.

The conditions for a lightning loan

The conditions for a lightning loan

In order to receive a lightning loan, it is imperative that the lending bank be provided some information very promptly. The transmission of these documents is regular via e-mail, in exceptional cases also via fax. Mostly these required documents are one

  • Copy of the proof of identity
  • account card
  • up to three bank statements of the last months with the proof of a regular salary receipt
  • current salary certificate or unfinished employment contract.

At best, these documents should already be available when applying for a lightning loan. Only in this way can any loss of time by searching out the documents be ruled out from the outset. Any time delay is equivalent to a late payment of the TackCredit. Otherwise, the real goal of the quick availability of money can not be achieved.

Advantages of a lightning loan

Advantages of a lightning loan

The main advantage of a lightning loan is the quick availability of the desired loan amount. Of course, provided that you have done all the necessary preparatory work as an applicant. In addition, these loans are often available without any credit rating. This makes this type of loan particularly interesting for those people who have negative entries in private credit, Creditreform and / or other credit reporting agencies. Here also a clientele is served, which would not receive a loan with regular banks. Another advantage of a lightning loan is the often lower minimum loan amount compared to a conventional installment loan. This minimum loan amount for most offers is 1500 € minimum. Some providers of lightning loans also offer the option to extend the first installment for the repayment of the lightning loan up to 90 days after receipt or payment of the loan.

Disadvantages of a lightning loan

Disadvantages of a lightning loan

Basically, the TackCredit applies as well as with all other types of credit: The conditions between the individual loan offers for a Sofortkredit usually differ considerably. So anyone who has the need for a lightning loan, should be keen to inform themselves comprehensively about available credit offers. So the conditions for an instant loan or lightning loan objectively compare. Only in this way can it be avoided that the already more expensive lightning loan in comparison to the simple, classic installment loan becomes even more costly than absolutely necessary. This is especially true when it comes to taking a quick loan to a higher sum. 

The interest rate applicable to lightning loans (effective annual interest rate) is usually much higher than the interest rate for a classic installment loan or an instant loan offered by a regular bank. The reasons for this are quickly explained: The annual interest rate is set by the government and monitored by the Financial Markets Authority (AFM).

  1. Banks, which offer lightning loans, orient themselves with the interest offer for a lightning loan at the creditworthiness of the applicant. In plain language this means that whoever has a good credit rating receives a correspondingly attractive effective annual interest rate. Where, however, the one who has just a not so clean vest at the private credit, the interest rate increases accordingly.
  2. However, most providers of those lightning loans often work without this AFM license. This carries the risk of being at the mercy of the credit provider in terms of the terms of such a loan. It is true that the AFM can impose fines on misleading information and high costs or interest charged by some providers. However, in this case someone would have to complain about such a dubious behavior of the lender at the supervisory authority.

In addition, the possibilities of a special payment granted in conventional installment loans as well as early loan repayment are often completely excluded. At least in the latter also often associated with high costs, the so-called Prepayment decision.

Special features of a lightning loan

Special features of a lightning loan

For all the positive as well as disadvantageous features of an instant loan, such as the generally higher interest rates per annum, there are also a few special credit features for one or the other provider, which make lightning loans special. Although this is not so-called unique selling points, but still interesting opportunities in the context of an offer for a Sofortkredit / TackCredit. One of the most interesting features in such a loan is the granting of a so-called payment break or installment break. With this rate break available at some providers, it is possible for borrowers to suspend the monthly installment for their lightning loan once a year.

Rate break at the TackCredit

Rate break at the TackCredit

In order to be able to claim a rate break offered in the context of using a lightning loan, the following prerequisites must be met by the borrower:

  • the first installment break may be claimed if at least 11 loan installments have been paid by the borrower on time and in accordance with the terms of the contract to the lender
  • If the installment break is to be claimed, the installment break must be agreed in writing with the lending bank no later than five banking days before the contractually agreed maturity of the loan installment
  • the income and employment relationships of the borrower are still unchanged

Note: When claiming the installment break, the term of the TackCredit automatically extends by exactly the duration of the agreed payment break. Thus, the accrued interest must therefore be paid for the period of the payment break.

Do not get a loan for the self-employed what now?

If the self-employed get no credit – what now?

The most important step for a self-employed person in a loan rejection is asking for the reason why the loan was declined. In the next step, they should consider themselves as self-employed, where can I apply for a loan if the bank refuses? If the house bank refuses the loan, then you can rely on direct banks as a self-employed person. The direct banks check the credit rating and the monthly income and the private credit information play a significant role. In the article “Do not get a loan for self-employed what now?” We show self-employed persons which alternatives or which suggestions for improvement are possible for a loan application.

Contents get as a self-employed no credit – what now?

Contents get as a self-employed no credit - what now?

  1. If the self-employed get no credit – what now?
  2. Possibilities for loan financing despite credit rejection
  3. Alternative to bank loan – private loan platform
  4. The new trend on loan platforms are private lenders
  5. Reasons for a credit rejection

Possibilities for loan financing despite credit rejection

Possibilities for loan financing despite credit rejection

The opportunity for a loan financing can increase self-employed by specifying a second borrower or a guarantor. These persons should have no records and a regularly secured income in the private credit. If the collateral from the borrower should not be sufficient, then a guarantee can be requested through a guarantee bank. In the various federal states, a guarantee can also be applied for through a promotional bank for a loan. The self-employed can also apply for a loan on a loan platform on the Internet, since the acceptance guidelines are not as strict here as with a bank. The self-employed can also rely on the direct banks on the Internet.

Alternative to bank loan – private loan platform

Alternative to bank loan - private loan platform

The bank rejects the loan application for self-employed, then you have the option to look for alternatives to bank credit. In this case, there are private loan platforms such as auxmoney and smava on the Internet, which provide loans between individuals. Because on these credit platforms, not the banks decide on the award of the loan to self-employed but private financiers. The self-employed person presents himself and his concerns on the credit platform and enters the desired loan amount. When the desired loan amount is reached, the loan platform settles the loan. The borrower then transfers the loan installments to a partner bank, who then forwards the money to the individual lenders.

The new trend on loan platforms are private lenders

The new trend on loan platforms are private lenders

The new trend on credit platforms is private lenders. The concept of private lending is simple, as credit marketplaces provide borrowers and lenders with a dedicated platform on the Internet. For the lending here not only the numbers after the count, but also that the borrower receives better conditions by a good presentation of the loan project than by the house bank. A weak credit rating of the borrower can also be compensated by a good presentation of the loan project.

Reasons for a credit rejection

Reasons for a credit rejection

For a credit rejection, the most common reason for the self-employed is a negative private credit entry or lack of collateral. A good credit rating indicates whether the borrower can repay the monthly loan installments. Possible reasons for refusing a loan for the self-employed are:

  • Lack of collateral
  • Regular income not available
  • Negative private credit entry
  • Too low profit
  • Return debit on the checking account
  • No sales growth
  • No guarantor available
  • Self-employed is too indebted

Self-employed persons should always submit complete and correct documentation to the bank for a loan application in order to avoid a credit rejection.

Loans and subsidies for the self-employed

Loans and subsidies for the self-employed, craftsmen and freelancers

There are now over a thousand loans and grants for the self-employed. But who knows the right credit for his situation? And if self-employed make an application for a loan, then you should know the conditions for it, otherwise a loan from a bank is quickly rejected.

We have put together a personal credits and funding description for self-employed. The tail unit can be downloaded immediately for 39,90.

An excerpt can be found at personal loans and self-employment funding.

Personal loan for self-employed without bank

Personal loan for self-employed without bank

If there is insufficient income for the self-employed in the last two calendar years, self-employed persons are usually refused credit by their bank. But there are now many alternatives, how self-employed can finance properly without their house bank. In the personal loans and subsidies, we have listed several interesting options. And there is certainly also suitable for you as a self-employed offers.

Credit for self-employed without private credit information

Credit for self-employed without private credit information

A private credit entry is usually three years in the private credit, even if the demand has long been paid! But a private credit entry means for self-employed with a credit rejection. Many self-employed people are denied access to the credit market.

In our personal loans and subsidies for self-employed, we have also listed offers in which a private credit entry plays no role. Find out about our reader test.

Credit counseling for the self-employed

Credit counseling for the self-employed

As a small business owner, you are responsible and responsible for everything. And there is no such thing as a man who knows everything equally well. Because everyone has strengths and weaknesses. Mid-sized and larger companies use qualified managers in positions of responsibility. And what can the individual entrepreneur do?

The self-employed has as a consultant his tax adviser and bank consultant! And? Did these consultants help you?

Financial advice supported by the BAFA

Financial advice supported by the BAFA

Our advice is promoted by BAFA from 50% to 90% . We help you to solve the most important problems and get suitable loans. Even Intrasavings Bank recommends: In case of problems, self-employed should get an external consultant.

You can apply for a consulting grant for the following types:

  1. Start-up companies up to 3 years after founding (start-up)
  2. Companies from 3 years in the growth phase
  3. Companies in difficulty from the 3rd year

Credit advice, if banks reject!

Credit advice, if banks reject!

  • favorable government loans by Intrasavings Bank with indemnity
  • Rescheduling expensive current account credit
  • Order pre-financing and increase warehouse
  • Guarantee of the guarantee bank if the collateral is too low
  • Capital raising for other purposes
  • Consulting cost subsidy 50% to 80%

There are banks that still finance if the house bank refuses!

What is the debt ratio?

The realization of a real estate project involves, for the applicant, to know his borrowing capacity, this in order to have a precise idea of ​​the amount he is able to borrow for good. To determine this capacity, banks use a tool based on the ratio between expenses and recurring revenues. This tool, called the debt ratio, makes it possible to estimate as much as possible the share of the budget dedicated to the repayment of monthly payments of the mortgage loan.

The debt ratio in a nutshell

debt

It is generally accepted that the debt ratio should not exceed 33 %, in order to preserve the financial position of the borrower and not to create a risk of any difficulties in repaying the loan. 
Thus, depending on the household debt ratio, and depending on whether the risk is judged or not too high, a mortgage can be refused or granted by the lenders.

In spite of the 33% rule, each institution determines the real estate debt ratio and the borrowing capacity of the applicant according to its own rules.

The reason why a household can be refused a loan by a bank when another will accept his file for the same project. 
It should also be noted that banks do not limit their study to the single loan rate of the mortgage, but also analyze the profile of the borrower, namely his professional situation, his family situation, his age, his income, the duration of the loan or the existence of a personal contribution.

The notion of “rest to live”

The notion of "rest to live"

In this respect, the mortgage debt ratio may vary significantly depending on the resources of the households concerned.

A borrower whose resources allow him to have a comfortable “rest to live” can thus benefit from a slightly higher debt ratio than a household with modest resources.

For information, some incomes are systematically taken into account for the calculation of the debt ratio. These are net wages, including, where applicable, contractual bonuses, non-salaried employment income, maintenance payments made by court order, as well as retirement pensions, disability …

Conversely, taking other income into account is left to the discretion of banking institutions.

These are commissions, family allowances, housing allowances and property income. 
On the other hand, exceptional bonuses and other professional allowances are excluded from the calculation of the debt ratio during a mortgage.

To know its borrowing capacity and determine its debt ratio, the following rule should be applied: 
debt ratio = total amount of the loan x 100 / net income, some and recurring of the borrower (s)