Micro credit finance institutions have gained popularity over the last couple of years. The growth has resulted from better interest rates, ability to secure a loan without security, and less period to process your loan. Some micro credit has have online loans which any member can access if you have internet connection, you required to fill some forms online, the after they verify your documents, the money is sent to you.
There are many micro credit institutions in the market, which can it hard for a borrower to choose one among the many. Below are factors to consider when looking for a micro finance institution.
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. Although they may be based online, ensure they have a physical office, the licensing they have should also be current.
Lending terms is the second factor to consider when looking for a micro credit. The interest rates from one micro credit to another may be slightly different. 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 has terms that you are comfortable with.
What types of loans does the micro credit offer? 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.
Reputation of the micro finance is another major factor to consider when choosing one. It is common to see past clients dong reviews on different websites and platforms online about their experience with the company. 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. Micro credit with good customer relations will always get reviews.
The number of years a company has been in-existence is another factor to consider. 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.