When taking out a loan or other financial obligation, registration of that obligation usually follows with the Credit Registration Office (BKR) in Tiel. Here, the loans and lending of all Dutch people are recorded. Banks and other agencies can test whether they want to grant someone a new loan based on an overview of current liabilities. If you have a lot of debts, it can happen that a new request for a loan is rejected. Then you could possibly consider taking out a mini-loan without BKR. This is possible at various agencies, which usually operate via the internet.
What is a mini loan exactly?
A mini loan is a loan that you have to pay back within a relatively short time. You can also only borrow a small amount. A mini loan is not suitable for buying a car, but you can bridge a period with it until the next payment of your salary or benefit. You usually take out a mini-loan for an amount between 50 and 1000 euros. You must repay this loan within a period of approximately 30 days. With a somewhat larger amount there are sometimes two expiry dates, the first after 30 days and the second after 60 days. You can only take out a mini-loan if you are sure that you can repay the borrowed money within a relatively short period of time. You often do not pay interest for a mini-loan, but you do pay an administration fee, which in fact amounts to the same. Sometimes interest is charged, the amount of interest must then be stated with the loan amount.
What conditions must I meet for a mini loan?
Everyone who lives in the Netherlands and has a Dutch bank account can take out a mini loan. For this you must be of age, at least 18 years old. You must also be able to submit a copy of a valid proof of identity. Often the lender asks you to transfer 1 cent to his account number. This way it is checked whether the bank account you entered is indeed yours. Finally, in most cases it is necessary that someone guarantees you. This person declares that he will pay off the loan if you are unable or unable to do so. The person who guarantees you must also provide a copy of the proof of identity. So you cannot randomly designate someone as a guarantor who knows nothing about it.
Where can I take out a mini loan?
You take out a mini loan via the internet. There are several lenders that offer a mini loan, also called a flash credit or a flash loan. So if you want to use this, you can first compare the providers. You can see whether a BKR test is taking place or not, but also how much you can borrow. Also note the costs when comparing. Sometimes a mini loan is provided interest-free, but you do pay a reasonable amount in additional administration costs. The period for repayment may also vary. A guarantee is necessary almost everywhere, as well as the transfer of 1 cent to check your bank account number. Sometimes the latter is not included if you have borrowed money from the same lender before. You can also search the internet for references to check whether a loan provider is reliable or not.
Why would I want a mini loan without BKR testing?
Some people have multiple financial obligations. It can then happen that a new loan is refused by a bank or an online institution that does take a BKR test. After all, the bank wants reasonable assurance that you will repay the borrowed money on time. If you think that a BKR test turns out to be negative and will lead to a rejection, you can opt for a mini-loan without a BKR test. However, this does not mean that a body that does not consult the BKR does not perform any checks at all. These institutions often have their own systems to check your creditworthiness. This too can therefore lead to a rejection. If you are registered as a defaulter, for example, there is a good chance that you will not be able to take out a mini-loan without a BKR test.
What has the BKR registered of me?
You can also view your own details at the BKR if you wish. All loans and other financial obligations registered in your name are registered with this body. Since 2017, this also applies to the somewhat more expensive mobile calling plans. So if you have the mobile subscription of your son or daughter in your name, this will be added to your financial obligations. This also applies if you have a lease car, this is also seen as a “long-term financial obligation”. You will also find personal loans, revolving credit and credit cards here. Even if you have no outstanding balance on your credit card or have not opened any of your revolving credit, this is still registered. After all, you have the option to use it. A mortgage is not registered with the BKR, only if there is a payment arrears.
What is the risk if I take out a mini loan without a BKR?
If your application for a mini-loan is not reviewed, there is a chance that you will enter into an obligation that you cannot meet. After all, if you already have many obligations, there is a chance that you will not be able to repay the mini-credit on time. People who take out a mini-credit generally do not have any financial reserves. Because if they did, the credit was not necessary. If there is no assessment, it will not be checked whether you are creditworthy. This will not matter to the lender very much, it will certainly ensure that he gets his money back. After all, he also has the person who must guarantee you behind the hand. If you do not pay off the loan on time, he will use this guarantee. In addition, these are relatively small amounts that do not constitute a major risk for the lender. However, for you as a borrower, the risk is definitely there.
What happens if I do not pay off my mini loan on time?
For a mini loan, a payment term of 30 days generally applies. If you pay off the loan within this period, there is nothing wrong. But if you do not pay on time, the counter will start running. The additional costs can then increase considerably in a short time. There is also a good chance that you will soon receive a visit from a collection agency. They will do everything to persuade you to make the payment. Some collection services use very aggressive methods. Daily emails and phone calls are no exception. In addition, some collection agencies do not hesitate to threaten with seizure. This is illegal, only a bailiff can seize your income or movable and immovable property. If you get a collection agency at the door, whether this is for a mini loan or for another debt, then never agree to take expensive items because this is illegal. A threat with seizure of your income is an empty threat, because a collection agency simply does not have the authority for this. Your employer or benefits agency will therefore not carry out such attachment if it is already requested.
Do I have to let me know where I spend the money for the mini loan?
When you ask for a loan from a bank, in most cases the bank wants to know what you are going to spend the money on. This is then included in the considerations as to whether or not you will receive the loan. If you want to buy a car, the chance that the loan will be granted is greater than if you say you want to turn the money into an expensive holiday trip. Because if you do not pay off the loan, the bank can seize the car and sell it. This does not apply to a mini loan. The agency that provides the loan will not ask what you need the money for. After all, it is only a small amount and the chance that you will pay back the loan on time is fairly high. In addition, the lender always has your guarantee in hand. So whether you spend the mini loan on a weekend trip or to be able to pay for the groceries will not matter much.
Is a mini loan popular?
The mini loan is fairly popular. The most important reason for this is that you can close it quickly and fairly anonymously. After all, you don’t have to report to a bank, but you can arrange everything from your own home. The advantage that you usually have the money in your account within 1 or 2 days is also attractive for many people. Often a mini loan is taken out to cover unexpected costs. If the washing machine needs to be repaired, the technician often wants butter with the fish. And if there is no money then you have a problem. Other costs must also be paid immediately or within a few days. A mini loan can offer a solution because the repayment term is generally at least thirty days. Only for small amounts of, for example, 50 euros, a payment period of 7 or 14 days sometimes applies. Taking out such a loan only makes sense if your salary or benefit is paid quickly and you are sure that you can pay off on time.
Alternatives for a mini loan
A mini loan often entails high costs, even if you pay off on time. An alternative can be to borrow the necessary money from family or friends. Such a person must of course be available. It is always wise to make a written agreement of such a loan that you both sign. This way both parties know what the agreements are and when the loan must be repaid and possibly in how many installments. Of course you can also go to a bank. If you can be red on your checking account, this is also an alternative to consider. You generally pay little interest for standing in red. Some banks even have checking accounts where you can be free for a few days. This is always cheaper than taking out a loan, whether this is a mini loan or a personal loan from the bank.
Keep an eye on your finances
It can happen to anyone that a money shortage suddenly arises. Sometimes you have to deal with financial setbacks that follow each other too quickly to be able to absorb them with your income. In principle it is then no problem to use a mini loan once. But if this becomes a regularly recurring phenomenon in your household then there is more to it. Make sure you gain insight into your finances. List where your money is spent. Your fixed costs are monthly recurring costs that you have to pay anyway. From what remains then the groceries must be done and other recurring expenses.
That way you learn how to handle your money better
If you run out of money every month it is wise to see if you can cut back. Cancel subscriptions, see if you can be cheaper for the subscription of your mobile phone and for the costs of insurance, gas and electricity. Also look at your debit card payments, which can sometimes add up considerably. It is better to withdraw an amount from the cash machine every week and make ends meet. Then you know exactly how much you spend. That way you can also see better or you can cut back. Buy less A-brands and only buy fresh products if you can use them on time. A lot is still thrown away every year because it is spoiled. A product that has passed the date does not necessarily have to be suitable for consumption. By looking critically at your spending pattern you can sometimes come to surprising conclusions when it comes to spending cuts.