Did you know that microfinance organizations do not require guarantors from the borrowers, documents confirming the solvency or a certificate of family composition, which cannot be said about banking institutions? Did you get interested? Read more. In order to issue and receive low-interest microcredits at the bank, it will take a lot of time to collect all certificates and documents, otherwise your application will not even be considered. Terms of decision making in banks and private lender also differs significantly. If, when contacting a bank, you have to wait from one day to a week, then in the case of cooperation with an private lender, within 15 minutes you will know for sure whether they will give you a quick loan at a low interest rate or not.
How are low-interest loans issued?
The procedure for applying for and receiving online loans with a low-interest card in many microfinance institutions is about the same. There may be minor differences, but, in general, it looks like this:
- the borrower chooses the lending company;
- using the loan calculator available on the website of each MFO, the client chooses the amount he needs and a convenient maturity of the microcredit;
- in a special form, you must specify your personal and contact details, including the card number, to which the loan will be transferred at a minimum interest rate;
- confirm the application;
- wait for the decision of the commission for issuing microloans, as a rule, the answer comes to the phone, to the email indicated by the borrower, or to the personal account on the website created during registration;
- get a microloan at low interest on a bank card;
- cash out at an ATM or use a card when paying for goods and services.
Upon the expiration of the loan period, the borrower who received a microloan is obliged to return the funds in full by any of the methods proposed by the microfinance organization.
Ways to return the loans
Traditionally, MFOs offer several ways to repay loans with a minimum percentage. Namely:
- Return the money to the bank card specified by the MFO.
- Transfer the debt through the bank cashier, specifying all the necessary payment details.
- Top up balance in self-service terminals.
- Make a transfer from card to card.
The borrower, receiving emergency loan online, will be familiar with all the methods of return, and will be able to choose the most convenient option. Ways of return are specified in the contract, which the client reads and signs when applying for a loan.
How to get a credit card at a low interest rate?
In order to accurately get an online loan with a low interest, the borrower can apply for at several microfinance organizations at the same time. This will increase the chances of a positive solution to financial difficulties. If approval is obtained in more than one MFO, you can always interrupt the clearance procedure without signing the agreement and confirming consent.
In addition, in order to avoid difficulties in obtaining loans online to a card with a small interest, you need to take care of your credit history by paying your debt and interest on the loan in a timely manner. This way, the borrower will avoid trouble in subsequent applications, and will have a reputation as a reliable and responsible client, which is highly appreciated by all MFOs.
As you can see, an online loan with a small percentage can be issued quickly and conveniently, while saving your personal time and effort. The choice of microfinance organizations in the Philippines today is very large, the terms of cooperation are different, therefore, each borrower can choose the appropriate option.