No bank lends overnight. For the urgent need of money, fintechs have launched innovative services, to obtain funds in less than 24 hours. These are small loans, but they can be very useful if you are willing to pay a lot of fees…
Small sums of money can sometimes get someone out of big, urgent problems…
The advent of the Internet and common European legislation in the financial sector have allowed the introduction of new services previously deemed impossible. Today, there is nothing simpler than obtaining a ” minicredit ” overnight, without having to justify a purchase. Even the banking ban or FICP registration is not a drag.
Several companies have embarked on the niche of small money loans in Europe. Technically, it is not about consumer loans, sums being below the legal minimum in France, as well as the repayment terms.
In France, two main players share the very short-term credit market: the Maltese company Viloan, and the French company FinderCash. Each company has peculiarities, which must be evaluated before making a choice when applying for a minicredit.
Microcredit or minicredit?
These new financial services are often confused with microcredit. At XeConomy, we prefer to differentiate them. Microcredit is there to help a person to realize a concrete project, often of a social nature. Mini-credits do not require any proof, and the high fees for getting money fast have absolutely nothing of a “social welfare”.
In the US, the minicrédit is known as “payday loan” in French “payday loan.” Clearly, it is a loan to repay the day when one receives his salary.
how to recover an unpaid
In short, reasons, there are many, not necessarily admirable. And this is the other great strength of the minicredit: no one will ask to justify the loan. Viloan ready in less than 24 hours without asking questions about what we are going to make money. No proof of purchase to provide. All that interests them is to be reimbursed on time.
But not giving proof of purchase does not mean that we do not give any paper to micro-credit organizations: they want to know our identity, our income and our address. FinderCash even requests access to our bank accounts!
An alternative to the minicredit to get money immediately is to go through the “loan on pledge” of the Municipal Credit. Of course you have to have a valuable object to pledge, which is not the case for everyone…
lend to someone who is over-indebted or registered with the FICP.
But remember: below 200 euros, it is not a consumer credit according to the law. The obligations of a credit company do not apply, even if one is prohibited banking and FICP. Free to Viloan to lend or not. On the other hand, as soon as one is at 200 euros or more, if the credit company decides to lend anyway, it is knowingly, it knows that the borrower is a “risk profile”.
The minicredit should be considered as the last chance funding. A medically urgent to buy, maybe!
To lend, these companies rely on other criteria than those used by traditional banks. They work with what we call ” big data “, that is to say with a multitude of different data that allow to have a fairly reliable idea of the borrower’s profile. Thus, a company can consult the social networks (Facebook profile!), Cross-check the information of the job, the age, and all the data at its disposal to grant a loan.
Where the two companies based in Malta innovate, it is in the terms of repayment, much less flexible than a bank: it must repay the amount borrowed in 30 days!
On the FinderCash side, the system is different. It is not a revolving credit, but a crowdfunding. The company is paid in commissions. The repayment term is different too, up to 90 days.
Comparative of minicredit in France:
|minimum amount (euros)||50||200|
|maximum amount (euros)||1000||600|
|minimum duration (days)||15||30|
|maximum duration (days)||30||90|
We will choose one or the other minicredit company on very personal criteria.
- Speed : Viloan offers loans in less than 24 hours.
- Confidentiality : Viloan does not request access to the bank accounts of its customers.
- Amounts : Viloan can lend up to 1000 euros.
- Trust : FinderCash is a French company
- Ethics : let’s say it right away, none of these two companies. It’s not about charity!