In the current economic conditions, getting a loan from a bank is becoming more and more difficult. Now credit institutions prefer to give money only to verified clients who have a good credit history. For everyone else, there are many organizations that specialize in issuing small amounts. Here you can get the money you need very quickly. However, before contacting such organizations, you need to know some of the features of microloans.
Microloan: urgent and expensive
Most Russian citizens cannot get a loan from a bank for a number of objective reasons: low official income, bad credit history, or lack of necessary documents.
Firms that specialize in giving out small sums of money come to the aid of such people. Sometimes it is enough to provide only a passport, and the required amount is already in your pocket. Microfinance organizations (MFOs) are trying to form their own base of borrowers who already have a credit history.
In an MFO, you can get a small amount (from 100 rubles to 50,000 rubles) for a short period (usually from a week to a month). As a rule, the preparation of the necessary documents takes no more than an hour, and if you apply for a loan on the Internet, then even less.
MFOs risk much more banks, therefore, interest rates on loans are much higher here. A huge disadvantage of MFIs is simply extortionate interest. The average rate here is from 0, 6 to 4% per day. This is approximately 450-1500% per annum. In fact, just crazy rates, but what to do if money is urgently needed, and the salary is still too far away. Of course, it is advisable to use microcredit only in the most urgent cases, when there is simply no other way out.
Microcredit fraud
Unfortunately, turning to the services of an MFI, it is very easy to become a victim of fraudsters.
Before going to the company for a loan, you should check the unified state register of microfinance organizations that have permission to operate. This can be done on the website of the Bank of Russia Financial Markets Service.
Try to get a loan from a reputable organization. Read reviews on the Internet to protect yourself from scammers, of whom there have been an abundance of divorces lately. Please contact only trusted companies.
