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. With micro credits its so much easier to access loans, especially with the introduction of online loans by some micro credit.
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. The factors below can help you in choosing 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. Always check the date of validity on the license, it is also a requirement for a micro credit to have a physical location, only proceed with the micro finance if they have meet this conditions.
As a borrower what requirement must you meet in order to qualify for a loan from the micro finance. Different finance institutions charge different interest rates for their loans. 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 has terms that you are comfortable with.
What are the kinds of loans that a micro credit is offering? Different institutions specialize in different kind of loans, there are those who do short-term loans, while other they mainly focus on long-term loans. In some cases, an institution only focuses on personal loans and others business loans, find out the niche the company focuses on, then choose a micro credit that offers the kind of loan you require.
Reputation of the micro finance is another major factor to consider when choosing one. Do some research online, check for reviews from different blogs, websites as well as their past clients. Reviews mostly state the kind of services a company is offering, how their experience was dealing with company and either recommending or discouraging people from trying it out. For a reputable micro credit, you will find many good reviews and ratings about them.
How long has the company been operating? 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.