What are fast online loans and myths about them?

How realistic is it today to get an online loan without providing a complete list of documents, guarantees and guarantors in exchange? Where to get an express loan and what misconceptions about microfinance organizations are firmly rooted in people's minds? We will discuss all these and many other questions in this article.

Unsecured online loan resources

The credit boom, when banking institutions made loans to everyone in a row, is long gone. Now, banks are putting forward a series of requirements for the customers. The borrower must provide a large list of documents, collateral and guarantor. The process of getting a bank loan has become significantly more complicated, which is why many people have started to think about alternative ways to get money on credit.

Often, there are situations where cash is urgently needed and banks may consider an application from several days to a week. Going through various bureaucratic procedures and the long wait for a decision do not make you want to contact banking institutions.

In addition, in the absence of punctual payment, the bank not only begins to charge fines, because of which the debt quickly increases, but can also file a lawsuit. If movable or immovable property has been pledged on the loan, they will go to the financial organization, and the borrower will also be required to pay court fees.

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Another disadvantage of bank loans is that loans are not granted to everyone. It is problematic for students or people without official income to obtain a loan, even on terms that are not the best for them.

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Microfinance institutions – simple and fast online loans

In recent years, people are increasingly turning to microfinance organizations as it is much easier to get a loan from them without providing a complete package of documents. Despite the popularity of MFIs, there are still many myths about cooperation with credit companies.

Many people are afraid to apply for them because of stories, about heavy fines, thug collectors, courtrooms and so on. Others, on the other hand, believe that MFIs give money almost for free and there is no need to return it. All these myths arise due to lack of citizen awareness.

Let's consider the most common misconceptions about lending in microfinance organizations.

# Misconception 1. To get a large loan, you will still need a guarantee or guarantor

Benefits of microfinance institutions

It must be said right away that credit companies are specialized in microcredit. In other words, it is, in principle, impossible to get a large amount out of them. $ 1000 is the maximum amount you can obtain from an MFI and is subject to certain requirements below. This amount will not be enough to buy, for example, a car or a summer residence, but it is quite possible to do a modest room repair for this. Therefore, no bail or bond will be required in any case.

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Misconception # 2. Loans are issued to everyone

It is much easier to get money from an MFI than from any bank. Microfinance organizations provide loans to unemployed people, students or people with bad credit history. About 90% of the applications are satisfied. But that doesn't mean that fast online cash loans are available to everyone. Credit companies evaluate a whole list of data received about the customer, on the basis of which a decision is made. In most cases, the decision is made automatically by the system, which determines the risks.

Misconception #3. MFOs aren't serious, so you don't have to return the money

Before receiving the money, a loan agreement is signed, according to which the borrower undertakes to repay the money within the specified period. Like banks, MFIs can impose penalties and go to court to collect debts. Therefore, the money must be returned in any case.

Misconception # 4. MFIs cheat and eliminate debt using gangster methods

Almost all microfinance organizations value their reputation, so the times of small print, when additional interest and penalties were prescribed in the contract, are a thing of the past. In addition, people are now a little more literate and almost everyone is already re-reading the loan agreement before signing it. If you see any suspicious points or interest that shouldn't be there, just decline the loan.

All major credit companies are officially licensed and operate, therefore operating within the framework of the legislation in force. In case of delays, no one will send crooks to you, but collectors can demand a refund. If you cannot repay the loan, you can always arrange for its extension, giving yourself more time to look for the money.

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Microfinance institutions - simple and fast online loans

Benefits of microfinance institutions

  • The ability to apply for a loan online;
  • No need to provide income statement and a bunch of other documents;
  • About 90% of loan applications are satisfied, which means anyone has a chance;
  • It takes no more than 20-30 minutes to get a loan, just fill in a questionnaire and wait for a decision;
  • Money can be received on any bank card;
  • Convenient methods of repayment, the ability to issue an extension;
  • Many MFIs run promotions, thanks to which a loan can be obtained on the most favorable terms.
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Which MFI to apply for a loan?

Today, there are dozens of microfinance organizations in every city that offer different credit terms. When choosing a credit company, you need to consider:

  • conditions to be imposed;
  • interest rate;
  • the MFI's reputation;
  • due dates;
  • maximum loan amount;
  • the presence or absence of promotions, bonuses for new customers.

You just need to weigh the pros and cons, look at the proposed conditions and choose the MFI that fits your needs. To increase your chances of getting a loan, you can submit an application to several organizations at the same time and, with a high degree of probability, at least one will agree to grant you a loan. If there is more than one of these organizations, you can choose the one that offers the most favorable terms.

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