Small credit

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In banking, the small loan is a consumer loan to private households with a maximum amount of 10,000 euros.

General

The classification as a small loan depends on the amount of the loan and is not made uniformly by the credit institutions . Often the designation varies between “personal small credit (PKK)”, “mini credit” and “instant credit”. Compared to larger loans ( mortgage lending , Lombard loans ), it has some simplifications. This includes a simplified credit check , no loan collateral ( blank credit ; if necessary, wage and salary assignment ) or the lack of information on the intended use . Loans of 10,000 euros or more are no longer referred to as small loans.

history

The concept of small loans has been around since June 1936, when it was defined by a decree on a “new regulation of the costs of small loans with an obligation to regular repayment” with a maximum amount of 600 Reichsmarks against cash payment . In 1954, the small loan was defined in a Swiss publication as a "loan of small size without bank security, which is used for consumption purposes and repaid in regular installments". In a joint action, the German led major banks on 2 May 1959, personal small loan from 300 DM up to a height of 2,000 DM with the collateral of the wage assignment as a personal loan one. In six months, Deutsche Bank had already issued 123,000 small loans, with less than 1% eventually becoming non-performing loans . It rose to market leader when it reported a total of 500,000 "personal small loans" by the end of 1961 and was able to pay out its millionth small loan in August 1963.

Proof of income has always been a prerequisite for granting credit . In the past, the small loan differed from the installment loan in that the small loan was made available to the borrower in the form of a cash payment , which enabled him to appear as a cash payer. Already at the end of 1966 the volume of purchase loans of 720.5 million DM with credit banks exceeded that of small loans by 57.5 million DM. Today, small credit has largely lost its importance due to the introduction of the overdraft facility in 1968, even if it has other economic purposes ( Securing liquidity ).

In 2013, small loans in Germany comprised around 70% of all common installment loans in the private sector. Only about 30% of all loans paid out to private households are higher than 10,000 euros, so small loans comprise a large part of the installment loans. In Switzerland today, the small loan is a personal loan without special security of CHF 500.00 to CHF 80,000.00 and is subject to the Consumer Credit Act (KKG).

Legal issues

According to Section 492 of the German Civil Code (BGB) , the small loan is one of the consumer loan contracts , the requirements of which it must meet (especially in writing ). He's banking law , a credit within the meaning of § 19 para. 1 no. 4 KWG so that banks here also the rules of lending have to be observed. In small loans is to § 6 price regulation specifying the effective annual interest rate by the lender prescribed so that the borrowers a direct comparison between multiple vendors is enabled.

Loan processing

The starting point is the written loan application submitted by the borrower , which is subjected to a standardized creditworthiness check by the bank . As a rule, this also extends to the Schufa information. Further loan documents are proof of income and, if necessary, a self- assessment . Usually, the customer receives a loan approval on the day these loan documents are submitted , which contains all the contractual components like a normal loan agreement . If the intended purpose is stipulated, the small loan is used to purchase durable consumer goods and has a term of between 6 and 24 months.

literature

See also

Wiktionary: Small credit  - explanations of meanings, word origins, synonyms, translations

Individual evidence

  1. ↑ Small credit, in: Kreditlexikon , accessed on February 18, 2015
  2. ^ Robert Knothe, Der neue Bankkunde , 1967, p. 56
  3. ↑ Pierre Flückiger, Newer Forms of Granting Loans , 1954, p. 21
  4. ^ Lothar Gall, Die Deutsche Bank 1870-1995 , 1995, p. 770
  5. ↑ Wirtschaft regional from June 9, 2009, “The mob storms the counters. May we close? "
  6. ↑ PKK experiences , in: Journal for the entire credit system, issue 16, 1963, p. 762
  7. ↑ Joseföffelholz / Gerhard Müller, Banklexikon , 1988, Sp. 1255 f.
  8. ↑ SCHUFA Credit Compass 2013, SCHUFA Holding AG (2014)
  9. ↑ Max Lüscher-Marty, Theory and Practice of Bank Loans 1 , Volume 1, 2009, 2.11
  10. ↑ Gabler Wirtschaftslexikon, Volume 3, 1984, Col. 2395