The microcredit company FinaGuru issues short-term and long-term online loans to individuals. The organization does not have a branch network; it operates remotely via the Internet.
Creditnice is a microfinance company operating since 2013. It specializes in loans with online processing, including to pay for purchases from partners; it also issues virtual credit cards and provides credit lines.
Features of a microloan for five years
Most microfinance organizations issue online short-term microloans for up to one month. Less common are programs without collateral or with a guarantee or collateral lasting up to one year. But some microfinance organizations offer long-term loans with collateral for a period of up to five years.
Such a microloan is very similar to a bank loan; you can take out a large amount from $1,000 to $500,000 without refusal, and you need to repay it in installments according to the schedule. The interest rate on this offer will be significantly lower than on conventional loans – up to 0.8%.
Due to the high risks, MFOs check borrowers very carefully and often require the provision of collateral, especially from new clients. A long-term loan for 5 years is often issued against a car as collateral. The title remains with the lender, the borrower can continue to use the car, but he is limited in his ability to conduct any transactions with the property. Or you can mortgage non-residential real estate registered in the applicant’s name.
Pros and cons of the program
Advantages
Large microloan amount up to $500,000
Simple application on the website or in the office of the microfinance organization
High chance of microloan approval even with a bad credit history
Early repayment without restrictions
Flexible repayment schedule with low monthly payments
Low interest rate compared to short-term loans
Flaws
The need to register a car pledge
Accrual of a large penalty in case of late payment
Large overpayment due to long loan term