For some time now micro credit finance institution have become popular in the market. 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.
There are many micro credit institutions in the market, which can it hard for a borrower to choose one among the many. Below are tips that can help you in settling for the right micro credit.
As a borrower only settle for a micro finance that is registered by the authorized body in your state. Make a point of ensuring they have a license that is running for that year and a location where their offices are.
Lending terms is the second factor to consider when looking for a micro credit. Different finance institutions charge different interest rates for their loans. To avoid paying a high interest when there is company that would have given you the same loan at a lower rate, do rates comparison among different micro credit. 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.
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. 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.
Has the micro finance institution build a reputable name for itself over the years it has been in business? Do some research online, check for reviews from different blogs, websites as well as their past clients. 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? A micro finance that has been providing their services for a while, have known all the challenges in the field and found their solutions.