The popularity of micro finance institutions has grown over the years, experts expect it to grow even more in the years to come. There are many benefits that one enjoys when you borrow a loan from a micro credit as compared to a bank, such as lower interest rates, better repayment loan period terms, no security, less time to process your loan and many more. With micro credits its so much easier to access loans, especially with the introduction of online loans by some micro credit.
Due to the high demand of loans there are many micro credits which have opened branches throughout, this is a challenge to a borrower as they try to differentiate them and choose one among them. Below are tips that can help you in settling for the right micro credit.
For a micro credit to qualify as one, it must be regulated and registered by the government, make sure the one you have chosen has been registered. Although they may be based online, ensure they have a physical office, the licensing they have should also be current.
What terms does the micro credit use to lend their loans to borrowers? The rates for one micro credit may be higher as compared to that of another micro credit. Visit several financial institutions find out their rates and then settle for the institution with the best rate. To avoid dealing with a company with harsh lending conditions, always make a point of finding all the conditions of the micro credit before signing an agreement with them. Go for a micro credit that is offering you with the most favorable terms.
What are the kinds of loans that a micro credit is offering? For each micro credit they have the kind of loans they usually focus on, either on long-term basis or short term basis. If you need a loan for personal use, check for institutions that are offering such kind of loans, if you want a loan to open a business, you will still find micro credit that offer such.
What kind of reputation does the micro finance institution have? Carry out a background check on the micro credit, on the different reviews that have been on different online platforms. Check if they are any complains about the institution charging people over priced interest rate and poor services. For a reputable micro credit, you will find many good reviews and ratings about them.
What are the number of years the micro credit has been running? If you are looking for a micro finance go for one with many years of experience, with such a company they have good services that is why they have continued to exist over the years, if a company is offering bad services clients will go to other options, leading to its closure.