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.
Online loans: apply online
Online loans are a financial service provided by a microfinance organization via the Internet. You fill out an application remotely in 5-10 minutes without visiting the office. Money is credited instantly to a card, e-wallet or other available method. When new clients first contact some microfinance organizations, it is possible to take out an amount of up to $1,500 on preferential terms, at 0%. After repaying the debt without delay, the likelihood of re-approval of a loan in the amount of up to $100 – $10,000 increases.
Pros and cons of online loans
The advantages include:
- You can get money without leaving your home
- To apply, you do not need to collect a large package of documents, just a passport is enough
- Transparent information about the amount that will need to be repaid
- High chance of approval – many companies issue money without refusal
- Quick decision making and instant transfer of money
- Loyal attitude towards borrowers with bad credit history
- Possibility of early repayment
High interest rate
You can receive more than $1000 only by providing liquid collateral (for example, a car)
As you can see, microcredit has more advantages. The main condition is to repay the debt on time. Therefore, if your income is unstable, it is better to take a small amount so as not to spoil your credit history.
Why do some microfinance organizations issue loans at 0%?
A 0% loan is a promotion to attract new customers. At the first application, the borrower can receive a small amount for a short period of time without interest if he returns the money on time. Otherwise, you will have to pay for the entire period of using the microloan and a penalty for late payment. To determine the client’s status, passport data is checked.
What happens if you don’t pay your debt on time?
If the client is late in payment, first of all the MFO charges a penalty for each day until the situation is corrected. Secondly, negative information ends up in your credit history, which will later lead to problems when applying for a new loan or credit.
To collect the debt, the creditor can use its own employees, involve debt collectors, or file a lawsuit. Based on a court decision, the debt is collected by bailiffs, who have the right to seize the debtor’s accounts and property.
What to do if you can’t pay your loan debt?
You need to immediately contact the MFO and explain the current situation. Most companies offer the service of extending a microloan for a new term. To activate the option, it is enough to pay the already accrued interest. If there are good reasons, the creditor may consider other debt restructuring options. But in any case, the borrower needs to solve a financial problem – find a part-time job, borrow from friends, sell property.