What is a mini credit and what are the pros and cons?


With a mini credit you can borrow money within a few minutes. As the name suggests, this often involves small amounts. Exactly how much you can borrow differs per provider. Most providers work with credit spreads up to around 750 USD. The maximum loan is in any case below 1000 USD. The duration of a mini credit is usually thirty days and lasts a maximum of three months.

Interest mini credit

Interest mini credit

Normally a mini-credit has a high interest rate, but there are also providers that do not charge interest. Other costs will then be charged. With some providers, for example, money must be paid for a guarantee, advice on insurance and the urgent transfer of the loan amount. In addition, the fines that are charged when you are late in paying back the loan are usually very high.

Mini credit – AFM

Mini credit - AFM

New regulations have ensured that providers of mini-credits can charge a maximum of 15 percent interest. Before May 25, 2011, interest rates on mini-loans were sky-high. Percentages of 40 percent, due to the high costs, were no exception. Fortunately, the AFM has put a stop to this. Mini credits with a duration of less than three months now also fall under the rules of the AFM. Mini-credit providers must have an AFM lending license. The AFM sets requirements for the costs of the credit. They may not charge more than the legally permitted interest.

Apply for mini credit

Apply for mini credit

Applying for a mini credit is arranged in no time. Applying for the loan can often be done online or via SMS. The money is on the same day, sometimes even within ten minutes, in the bank account of the credit applicant. Because the loan amount is always less than a thousand USD, there is no review at the BKR.

A mini credit is often taken out by people who temporarily need some extra money. This loan form is, for example, popular among young people. The loan is used to bridge a short period, for example the period for wage payment.

What to look out for when applying for mini credit?

What to look out for when applying for mini credit?

A mini-credit, just like other loans, must be repaid. If you are late with repaying, most lenders charge extra costs for this. These costs can add up considerably. If you think you cannot repay the loan on time, do not take out mini-credit. If you are far too late in paying, the claim from the mini-credit provider will be transferred to a collection agency. Here too, additional costs are charged.

Mini credit – Advantages and disadvantages

Mini credit - Advantages and disadvantages

An advantage of the mini credit is that you can borrow money in no time without checking with the BKR. However, if you cannot repay the money on time, additional costs will be charged. In addition, the AFM is currently investigating several license holders of mini-credits. Among other things, she looks at the high and sometimes hidden costs with mini credits. This will show whether the current regulations must be amended.

Did you know that … The difference between the most expensive and cheapest loans is 700 USD per year on average? Do you also pay too much for your loan? 

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