The main differences between microloans and bank loans
A credit company is much less demanding on the credit history of a potential borrower, but the fee for using microcredit can reach 60% per month and, accordingly, 720% per year, in case of constant use of this service. This is ten times higher than the interest on the use of banking products. Nevertheless, for lending at the bank, a huge number of various references and supporting documents are required. Depending on the amount and type of bank loan, collateral or guarantors may be required. In addition, the procedure for obtaining a
online loan applications and making a decision by the bank may take time. Considering all the pros and cons, a microcredit service can be a good option for quickly solving the emerging needs for money for various needs.
Banks provide a huge range of financial services. In particular, bank loans have various purpose and their own characteristics. Microfinance organizations have a narrow, specialized focus, as a result of which they can provide loans in only 2 ways: on a bank card online or in cash at a credit company branch. At the same time, 80% of companies in the microcredit market do not have their own branches and only provide loans online.
Over the past year, many new credit organizations / companies / unions have appeared. Each of them offers its conditions for cooperation, and also puts forward requirements for customers. You can familiarize yourself with them in more detail on the official websites of microfinance companies. We constantly monitor and add new ones to our catalog, we recommend that you follow the page refresh.
