A mini loan is a loan with a number of unique characteristics. Mini loan providers are companies that have specifically focused on providing small loans, with the following characteristics:
- Borrow small amounts.
- Loans with a short duration
- Fast money in your account
- Borrow without BKR review.
Are mini-loan providers Dutch companies?
This is not the case. A Dutch credit provider cannot offer a mini loan, as is currently being done online. This is because Dutch laws and regulations prescribe that a BKR test must take place and that the loan is also registered with the BKR.
The mini-loan providers are parts of Foreign banks. They are renowned banks from Finland and England. So no bank from a doubtful country.
What are known providers of small loans in the Netherlands?
In the Netherlands you can currently go to Saldodipje and Zaloan, to apply for and take out a mini loan. You can apply for a loan directly at these companies and entirely online. No intermediaries are involved here
Zaloan is a large company that has been listed on the stock exchange since 2015. The shares are listed on the stock exchange in Frankfurt, one of the most important stock exchanges in Europe. In total they have 800,000 active customers and they are active in 23 different countries. The head office is located in Finland. They see themselves as a Fintech company, bringing innovation within the banking system with a credit platform they have developed themselves. They operate purely and alone and online. You will not come across any Zaloan bank branches.
Balance dip is part of Zaloan UK LTD. This is a European market leader in the field of offering mini-loans. They have been active in this field for almost 15 years. They are registered with the English version of the ChamCom and hold the Financial Conduct Authority license required in England, which is the English counterpart of the Financial Markets Authority. It is therefore certainly not a questionable company since they are supervised in England and must comply with all the conditions that apply there.
What is a mini loan anyway?
The term mini loan is used in different names. In this way you regularly come across the name flash credit or mini credit. This is because you can borrow money in a flash. In general, the maturities of the loans are 30 days or 45 days.
In addition, you cannot borrow too large amounts. The amounts that you can borrow are fixed round amounts, such as 100 euros, 500 euros, 800 euros or 1000 euros.
The plus loan is a variant of the mini loan. The principle remains the same. However, the duration is slightly longer and is a maximum of 62 days and the amount you can borrow is 1500 euros. So it is like a slightly more extensive mini-loan, but you can still borrow money quickly.
Borrow with a negative BKR registration
This is perhaps the most important characteristic of a mini loan. Because no BKR check is performed, you can also take out a loan if you have a negative BKR code. This is something that is practically impossible with, for example, a personal loan or revolving credit.
The loan is also not registered with the BKR. If you want to take out another loan or, for example, take out a mortgage, a mini loan that has been taken out has no influence on this.
The disadvantages of a mini loan
Even with small loans, borrowing money costs money. You must pay interest on the amount that you want to borrow. In addition, the interest on a mini loan is quite high.
Request multiple mini loans
At Zaloan it is also possible to request a second mini-loan. You can apply for this second loan up to a maximum of 2 days before the due date of the first mini-loan. In this way you can either borrow extra money or, as it were, extend the term of the loan.
What can you use a mini loan for?
Since you can borrow a small amount with a short term, a small loan is suitable for spending in the short term. And then for expenses that do not exceed € 1,000. You can think of buying a new washing machine, TV or other household equipment. But also for bills that you have to pay urgently and for which you currently do not have the money.
Are these loans legal?
Because these loans are provided entirely online and the mini-loan providers are not established in the Netherlands, they are not required to apply for a license from the AFM.
Although the mini-loan providers are not established in the Netherlands, they are companies established within the European Union. The rules governing the provision of credit within the European Union are strictly regulated. And these laws must respect these mini-loan providers. It is certainly not about companies from distant countries where there is no supervision or legislation.
The AFM has tried in the past to take action against these mini-loan providers. This is because it is frustrating for them that loans are offered to Dutch people without the AFM being able to influence this. However, they have not been successful in this and have since given up.
How much does a mini loan cost?
Mini loan providers do not work for nothing. There must therefore be paid for a mini loan. Usually this is the interest that you have to pay.
However, the guarantee is specific to a mini loan. When taking out a loan, someone is asked who can guarantee the repayment of the loan, including the interest owed. This guarantor can be someone from your family or circle of friends. However, you also have the option of requesting a guarantor via the mini-loan providers Zaloan and Saldodipje. An additional amount will be charged for this.
However, if you yourself have someone you can present as a guarantor, you only pay the interest. Keep in mind that you should be able to pay back the mini loan in time. If you are unable to repay at the agreed time, the amount due will be recovered from the guarantor.
And they will not be happy with that and can affect your relationship with that person. In the overview below we have given a number of examples of how much a mini loan costs:
As you can see in the overview above, the interest is quite high. However, because the amounts involved are small and the duration is relatively short, the amount in euros that you owe in interest is not too high. This type of loan meets a need for extra money, which you need in the short term, but which you do not have to have for too long. For example, to bridge the period until you receive your holiday pay or your salary or benefit.
About Flash credit providers
To prevent misunderstandings, you cannot take out a loan on the Flash Credit Providers website. We also do not mediate or provide advice. For general questions about a small loan or about the website itself you can send us an email. For advice or specific questions regarding taking out a loan, you can turn to Saldodipje or Zaloan.