Small loans are very popular with many consumers: consumer requests that do not cost large amounts, but for which their own savings are insufficient, can be acquired with this financing. As with other forms of financing, you should compare the interest rates of the banks before taking out the loan. With a small loan comparison you will not only find favorable conditions, but also institutes that offer corresponding products.
What is a small loan?
Installment loans that can be taken up to a maximum loan volume of $ 5,000 are called small loans. Since not every bank grants a loan with such a small volume, a comparison is recommended: You enter your desired amount and the calculator determines the institutes that offer the appropriate financing.
As already mentioned, the loan type is an installment loan. Accordingly, the small loan is repaid in equal monthly installments and the interest rate is fixed over the entire term.
This means that monthly payments can be planned well in advance. You usually get particularly low interest if you take out the small loan online.
The reason is as follows: Since most products are issued by direct banks, the loans can be offered at a cheaper rate. The loans are also sold on the Internet. This saves costs because there is no need for personnel and branch operations. A small loan comparison helps you to find low-interest offers.
Save even more with a small loan comparison
You can use the comparison calculator to compare the banks’ interest rates. Above all, the effective annual interest rate is important because it contains not only the borrowing rate but also other important factors such as the processing fee and the term.
The total costs are also influenced by the residual debt insurance – but this is not taken into account in the small loan comparison because it is usually only taken out on request. When comparing, also make sure that there is no prepayment penalty. If you want to repay your remaining debt early or make special payments, this is possible free of charge.