Online loans

In the life of every person, an unforeseen situation may arise when a certain amount of money is urgently needed, but it is impossible to find a potential creditor. Banks, for whatever reason, do not consider you as their potential client, and friends and family are in the same financial situation as you are. The only real way out is to contact a microfinance organization that provides short-term cash loans. Try the best cash advance WI.

Microcredit is actively developing today, and therefore many people are beginning to be interested in the specifics of the work of MFOs, as well as the advantages and disadvantages of microloans. It would seem that microcredit is a great opportunity to solve your financial problems in the shortest possible time, but the overpayment for such a service is sometimes quite high. To have a complete understanding of the principles of work of microfinance organizations and the loans they provide, we recommend that you read the following information.

Microcredit — what is it?
Microcredit is a cash loan, the amount of which does not exceed 1 million rubles, provided for a short period (up to 12 months). But it should be understood that bank loans and the possibility of microloans are different types of lending.

MFIs, on the other hand, have more freedom of action in determining the conditions for issuing loans, which is why they include greater profitability in each loan. In addition, there are organizations focused on lending to small businesses. They issue loans on more loyal terms. In this microcredit market, the following types of loans should be distinguished:

a cash loan for a short period (for several weeks), transferred to a bank account, electronic wallet or issued in cash;
a small business loan for up to 12 months;
a loan for making an online purchase is issued for several days, the funds are transferred to an electronic wallet.
Distinctive features and advantages of microcredits
In cases where money is very urgently needed, and you have a bad credit history, or you do not work or work, but not officially, a microloan can be an excellent alternative to a bank loan.

MFOs issue consumer loans for up to 1 month, the loan amount can be up to 50 thousand rubles, and the interest for use is 1 — 2% per day. Having performed simple calculations, we get: 30 — 60% per month and 360 — 720% per year. While banks issue loans at 20 — 30% per annum.

But the expediency of the interest rate in MFIs is easily explained. The target audience applying for microloans is sometimes very specific. Those who are denied loans by banks go to microfinance organizations. And among such potential borrowers there are often gamblers, fraudsters and other categories of disadvantaged citizens who may not return the loan. Therefore, it is the increased interest rate that compensates for the risks of MFOs with a large number of unpaid loans.