Micro credit finance institutions have gained popularity over the last couple of years. Unlike banks they have favorable lending times, better interest rates and the waiting period before your loan is approved is shorter. Some have given gone a notch higher and are allowing members to access loans online, this is an advantage especially for people who don’t have time to visit the finance institutions.
For any borrower planning to take a loan from a micro credit, trying to settle for one can really be a huge task, you don’t know which is better than the other one. 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. Make a point of ensuring they have a license that is running for that year and a location where their offices are.
As a borrower what requirement must you meet in order to qualify for a loan from the micro finance. The rates for one micro credit may be higher as compared to that of another micro credit. To ensure you get the lowest interest rate, make a point of going around asking for the rates from different micro credit. Also, check if the institution provides their clients with a grace period in case they are unable to pay their loan on time. Go for a micro credit that has terms that you are comfortable with.
The kind of loans a micro credit is offering is another factor to consider. Some people want loans that are short-term, while others want to undertake a long project, hence they require huge loans, which they will repay for a long time, whichever the case, you will find a micro credit giving the loans in either short or long 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.
Reputation of the micro finance is another major factor to consider when choosing one. Carry out a background check on the micro credit, on the different reviews that have been on different online platforms. How clients are treated by a micro credit will determine the kind of reviews they will write. Micro credit with good customer relations will always get reviews.
What are the number of years the micro credit has been running? Always go for a company that has been in-existence for a long duration of time, which such a company it become stable financially over the years, they have also become efficient from the experience they have gained over the years.