Today, short-term loans are quite attractive for borrowers, as they are issued without collateral for any purpose. However, if you want to take such a loan, you need to keep in mind that the interest rates on short-term loans issued by microfinance organizations are much higher than for short-term loans from banks. The higher cost of microloans is due to the increased risks of non-repayment: the procedure for issuing urgent loans is simple. When making a decision, MFIs are often loyal to the bad credit history of borrowers and do not require any additional documents except for an ID.
What are short-term loans?
Short-term loans are loans issued for up to a year. However, the terms and conditions of loans issued by each microfinance institution may vary. The most common is the issue of short-term loans for up to 30 days upon initial application. With the further application of the borrower or if he has a positive credit history at the time of contacting the MFI, the term of the short term loan can be increased to 180 and 365 days.
Currently, Amercian microfinance organizations provide various types of short-term loans. Depending on the specifics of the company’s work and the preferences of the borrower, funds can be issued in the form of an instant online loan or in cash when the client contacts the company’s office.
At the same time, the borrower, at his discretion, can choose a convenient way to receive funds: at the MFI’s cash desk, on an existing credit card, bank account, e-wallet, phone number. Also, funds can be credited through money transfer systems.
The availability of this or that method of issuing funds should be clarified directly with the microfinance organization. Depending on the selected channel for depositing money, the borrower can also choose a method of repayment: cash desks, an MFI office, payment ATMs, payment terminals, etc. At the same time, it is necessary to clarify where exactly payments under a microloan agreement are accepted without commission, since not all of the payments offered by the company will be free for the borrower.
How to get a short-term loan urgently?
The procedure for issuing short-term loans differs depending on the specifics of the MFI’s activities. So, if a microfinance company provides money in cash, the client needs to contact the office of the organization, sign a microloan agreement, providing an ID, and deposit the money in the chosen way.
If the company offers to take money online, you will need to enter your ID details, address, e-mail and phone number in the special fields of the online application on the website or when you go from the website of the referral service where such applications are posted. Next, you need to select the desired method of depositing money and confirm your actions using the code from the email. It is important to understand that the deposit of funds occurs only after verification of all provided data and approval of the application by a lender. Thus, in order to avoid refusal, it is necessary to enter only reliable data and fill out the application correctly.
How to choose a profitable short-term loan?
In the process of choosing a microloan, it is important to consider a number of specific terms. For your convenience, you can use the catalog of short-term loans, in which all offers are sorted by interest rate, loan amount and repayment procedure. The card of each microloan contains information about the minimum and maximum interest rate per day, the permissible amount of financing, the term and form of issue, as well as the availability of various commissions. You can get acquainted with the requirements for the borrower (age, registration, necessary documents, the need to provide an account in the social network), the process of issuing and returning funds received. By comparing all the presented characteristics, as well as getting acquainted yourself with the terms for the provision of loans by microfinance organizations, you can easily and quickly choose the option you need. If you wish, you can fill out an application for a microloan online by clicking on a special button.