A minor, insignificant matter, colloquially an insignificant trifle, is called bagatelle. The situation is similar with a trivial loan. For the borrower, however, it is no small matter in the situation in question, but an urgent necessity. The small credit is a separate form of consumer or consumer credit.
It is also a consumer loan because the loan amount is too low to finance long-term or valuable purchases. The loan has a maximum amount of up to two hundred euros. A higher sum is a small loan, the minimum amount of which is five hundred euros or more.
Hardly up to date these days
Nowadays, the minor credit is usually replaced by an installment loan. The low money requirement in the lower three-digit euro range is covered in most cases by the overdraft facility on the checking account. Only if the current account is managed as a credit account, ie without overdraft facility, can such a low credit help with a liquidity bottleneck. For the loan seeker, there is the difficulty that banks and savings banks hardly ever grant a trivial loan. It is a rather theoretical offer, in which the lender has no economic or economic relationship to one another.
Lack of creditworthiness for the minor credit
As contradictory as it sounds at first glance; the number of those who have or have to keep their checking account as a credit account is quite large in the country. Anyone who is in this situation generally has no income from work, but receives regular monthly transfer payments. However, they are not a creditable, usable income in the credit check for a loan. In addition, the income is not or only marginally above the garnishment exemption limit. This lack of creditworthiness means an unacceptable credit default risk for the lender. Credit is also viewed when – more theoretically – granting a trivial loan and the credit score is included in the credit rating. Possible negative entries are another obstacle to this lending.
With a trivial loan, supply and demand hardly meet at all. It is neither offered theoretically nor practically for commercial purposes. If a trivial loan is granted, it is a loan with a short term of only several months.