Differences between flash loan and personal loan

The flash loan and the personal loan are the two well-known loans in our country, but they differ in terms of conditions and interest. You can get money quickly quickly with a flash loan, quick credit or flash credit, sometimes with money in your bank account today. If you have more time, take out a personal loan. There are major differences between these two loans. Almost anyone can take out a flash loan. This does not have to be the case with a personal loan. A personal loan is a gradually decreasing credit due to the monthly repayments. You pay off the flash loan in one go.

A personal loan as a flash loan

  • What is a personal loan?
  • Some differences between a flash loan and a personal loan
  • Flash loan or borrow money differently?
  • Who is the flash loan or mini-loan intended for?
  • What is the interest I have to pay?
  • What is the term of a flash loan or revolving credit?
  • How much can you borrow and who can you borrow from?
  • BKR assessment and assessment of the loan
  • Key lock

What is a personal loan?

The personal loan is the most requested loan in our country. With the personal loan pl, the interest, monthly payment and term of the loan are known in advance. You know exactly what it will cost you every month. The interest rate no longer changes, but is fixed. The borrowed money is immediately deposited into your account after approval of the loan application. Even in times of interest rate increases, a personal loan is a great solution, because you will not be charged the higher interest. A personal loan is personal because it is precisely tailored to your personal situation. No collateral is required to borrow.

Some differences between a flash loan and a personal loan

Anyone who wants to buy something nice or is short on money can choose from many loans. The flash loan is often advertised, the amount of which can be in your account within 10 minutes, which is of course super convenient. This mini-credit has great appeal for many people because the loan can be arranged quickly. The disadvantage may be that the loan has to be repaid quite quickly.

Flash loan or borrow money differently?

The personal loan is also very popular. You borrow up to 50,000 euros and repay the loan neatly every month. Every month you pay the same amount in interest and repayment and after a while the loan is fully repaid. But there are also many differences between these two loans.

Who is the flash loan or mini-loan intended for?

In practice, this loan is often requested by young people who just want to have some money in hand and want to bridge a short period. But this loan can actually be a solution for anyone who wants to get money quickly. The key word is borrowing money quickly and directly. These are relatively small amounts. 100, 200, 300 euros or, for example, 750 to 1,500 euros, but not amounts of 50,000 euros that are usual with a personal loan. Finally, the flash loan is for those who do not want to wait a few weeks, as can easily happen with a personal loan, but the target group is anyone who needs money immediately and wants to bridge a short period of money shortage.

What is the interest I have to pay?

With the flash loan you also pay interest, no administration costs. The lenders of the flash loan and the mini-loan now also fall under the Financial Supervision Act. If you want to take out a flash loan, it is wise to consult several providers. It is also advisable to request multiple quotes for a personal credit. In addition, you also pay interest for this. This is a fixed interest rate that applies for the entire term of the loan.

What is the term of a flash loan or revolving credit?

The term varies greatly. A flash loan has a very short borrowing period that you can determine yourself. You can borrow for a number of days up to a maximum of 45 days. A personal loan has a much longer term that you can agree with the loan provider. You should then consider a duration of, for example, 5 years. The duration of the loan is usually tailored to the lifespan of the product you want to buy with the money. Consider the lifespan of a car, a washing machine and the like.

How much can you borrow and who can you borrow from?

Borrowing money quickly involves small amounts. A few hundred euros and sometimes even less. A personal loan involves many thousands of euros. The providers of a flash loan are different companies than the providers of a personal loan. Taking out a mini loan or flash loan is easy, with or without a BKR registration. Well-known providers of a flash loan are:

  • Ferratum;
  • Balance dip.

Well-known providers of a personal loan are:

  • Santander.
  • Amstel money.
  • Money shop.

The interest on a large loan is often lower than on a small loan.

BKR assessment and assessment of the loan

Quite a few flash loan providers pride themselves on the fact that there is no BKR assessment. The borrowing period is too short to have to test the loan. The providers of a personal loan must carry out a BKR assessment. With them, a loan can be rejected if there is a negative BKR. A negative BKR will in any case slow things down. It will have to be assessed how serious the situation is and what can be done about it. Not all providers of a personal loan necessarily interpret the results of the BKR assessment the same. One provider may still see possibilities, the other may not.

Key lock

If you need money immediately, a flash loan is probably the solution, but if you have a little more time, a personal loan may be a good choice for you. Always look and compare carefully before taking out a loan.