A mini-credit or mini-loan is a type of personal loan designed for short-term repayments of not very large amounts that can be quickly available.

Usually the mini-credits tend to settle for loans of less than 900 euros. In some countries that figure is specified more, in Spain, for example, a mini-credit is considered to be loans between 100 and 600 euros. This money must be returned to the lender normally in a single term, which rarely goes beyond two months. On the other hand, being able to access this type of economic resources is not usually difficult in terms of time and paperwork.

The mini-credits are therefore of a quite small amount, even more than the microcredits, which can reach up to 3,000 euros.

Mini-credits and microfinance

The financial entities that are in charge of this type of loan business and operate under the ideas of microfinance facilitate the money in such a way that it tries to prevent the individuals who receive them from falling into recurring and lasting debts over time. That is, it is about advancing amounts of money small enough so that they are comfortably repaid in short periods of time.

In this way, the primary role for which this type of operation was created is fulfilled: to provide individuals with urgent loans, especially to be able to face unexpected expenses. However, the abuse of this type of financing mechanisms is not usually recommended in the long term, since they usually have proportionally higher interest rates than other loan modalities of longer duration and amount. In other words, they can alleviate unforeseen economic emergencies but do so at high costs.

In this sense, it is becoming common for these companies to limit the number of mini-loans or mini-credits per person to avoid repeated requests per year, since it has been observed that there is a certain tendency to do so due to the ease of acquiring this type express financing.

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