The idea of short-term credit comes from the Anglo-Saxon countries. The denomination is “Payday Loan”. The naming resulted from the original repayment date, the day on which the borrower got his salary. Short-term credits are awarded, depending on the provider, for a period of between seven days and six months.
Key facts at a glance:
- Significant differences in fees.
- All providers differ in relation to the amount of credit between new and existing customers.
- Maturities between 15 days and six months.
- viloan and sycloan Bank is a company with two websites.
Short-term loans are not offered by the traditional banks and savings banks. The background to this is that the margins are disproportionate to the administrative costs of the large institutions due to the low loan amounts. They are Financial Technologies who specialize in awarding. The possible loan amounts are quite low, bridging short-term financial bottlenecks. Not always is the money ready to pay for the car repair from scratch or just to replace a defective washing machine. Short-term loans are the ideal solution in such cases.
Although short-term loans can not be obtained without a private credit request, the acceptance guidelines are much less critical on the basis of the low sums than on a installment loan. The repayment of a short-term or microcredit is made either in one sum or spread over a maximum of six months. Usually, extending the repayment to two or more installments incurs an additional charge. This also applies if the borrower wishes to receive the loan within 24 hours.
The application for a short-term loan is fully online including the digital signature. If the donor requires documents, these are transmitted electronically.
Reputable providers of short-term loans
Since this loan variant is a very specific gap in the market, the number of providers is also rather clear. So far, three providers in Germany have convinced with their concept. It refers to
- viloan / sycloan Bank
All providers have in common that neither special repayments nor installment breaks are possible.
Let’s take a closer look at the offers of these three Financial Technologies.
Neofunding is located in Berlin. Like the other providers, Neofunding differentiates between the amount of the possible loan amount between new customers and existing customers. New customers can choose loan amounts between 100 Euro and 500 Euro. For existing customers, the amount increases to 1,000 euros. The term is 62 days for new customers, existing customers can choose a multi-installment option with a number of installments between three and six payment dates. This applies primarily to higher loan amounts that could not be repaid within 62 days. However, Neofunding charges a one-off fee of 59 euros.
Naturally, the prerequisites for a short-term loan with Neofunding are of age, but also a residence in Germany, an account with a bank based in Germany and a minimum income of 500 euros per month.
As for the private credit scoring, Neofunding also lends up to a scoring of M scores. If the money is needed very urgently, the borrower can opt for a, but fee-based, express transfer. In this case, the amount will be available in the account within a few hours.
Zaloan Money Express credit
Zaloan Money Express credit is a brand name of Zaloan Bank plc, based in Malta. The Zaloan Bank in turn is part of the Finnish Zaloan Group. In Germany, the institute is represented by a head office in Berlin.
The Zaloan Money Express credit is possible in sizes ranging from 50 euros to 2,000 euros. New customers can use the loan up to an amount of 1,000 euros. Further loans can be requested by the customers without major checks as part of the log-in. The staggering of the loans takes place in increments of 50 euros. The term for the Zaloan Money Express credit is either 30 or 62 days.
Although the loan decision may fall within 60 seconds, it may take up to 15 days for the borrower to receive the credit on their account. If he needs the money faster, a payment within 24 hours for a corresponding fee is possible. The fee for the short-term loan, in turn, depends on the amount for the short-term loan. The following examples show Zaloan:
- 50 Euro Credit: 29 Euro Xpress Fee
- 100 Euro to 149 Euro: 49 Euro Xpress fee
- 300 euros to 500 euros: 149 euros Xpressgebühr
Interest is not everything
But even without the Xpressoption fall in Zaloan in addition to the interest still other fees, which are based on the loan amount. The so-called rebooking fee is at
- 50 – 99 € 29 €
- 100 – 199 € 39 €
- 200 – 299 € 49 €
- 300 – 399 € 59 €
- 400 – 499 € 69 €
- 500 – 600 € 79 €
- 601 – 1,000 € 99 €
- 1001-1,500 € 149 €
- 501-1,699 € 179 €
- 700-2,000 € 199 €
The following order of magnitude applies to the installation fee:
- 300 – 499 € 79 €
- 500 – 699 € 99 €
- 700 – 999 € 149 €
- – 1.199 € 169 €
- 200 – 1,500 € 179 €
- 501-1,699 € 199 €
- 700-2,000 € 229 €
If the borrower chooses the two-rate solution, Zaloan will charge a 99 Euro premium. In connection with the Zaloan Money Express credit, the provider does not state which minimum income is necessary. A prerequisite for the short-term loan, however, is also a domicile in Germany, a checking account with a bank domiciled in Germany as well as the age of majority of the applicant.
viloan and sycloan Bank
Although viloan is a label of Malta-based sycloan Bank, there are still two websites. These are absolutely identical not only in design but also in fees and interest. The range of possible short-term loans for new customers is between € 100 and € 600, for existing customers up to € 1,500.
The term is initially uniform 61 days. But if you rummage a little on the site, find a link to “30 days credit”. On this subpage there is also the option to agree on a term of only 15 days or 30 days. According to the provider, the credit application only requires the applicant’s legal age of majority, a German mobile phone number and a checking account with a bank based in Germany. At viloan and sycloan Bank, fees only apply if the customer wishes to receive an express payment. In this case, the providers calculate 99 euros in addition to the interest. Without the express option, it took up to seven working days for the money to be available to the borrower.