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. The factors below can help you in choosing the right micro credit.
First, it is important to make sure the micro finance is registered and regulated by the relevant 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.
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. 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.
The kind of loans a micro credit is offering is another factor to consider. 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.
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? 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.