Micro Finance Loan Criteria

What are micro-loans?

We all need a little extra cash from time to time, whether it’s for groceries or sudden emergencies like a broken window. The major banks are particularly geared for large scale loans and mainly in the form of secured low-risk loans with significant collateral. This is sadly not an answer to emergencies or short-term situations. Micro finance loans are becoming a more realistic and available option for consumers needing short term, quick cash. Applications can be facilitated easily with very fast and even ‘over the counter’ or same day turnaround time. Furthermore, minimum requirements are less demanding than term loans. In short, they’re a simple, user-friendly solution to a problem that anyone can face at any point in life’s journey.

What makes them better than ordinary loans?

Micro finance loans are designed to be quick, with short repayment periods and simple, no-collateral agreements. Most banks or large scale lenders require surety, a spotless credit record, and a considerable paperwork before they’ll even consider you for a loan, even if the amount is not substantial. This highlights the significance of micro finance loans.

Since these loans are unsecured, as mentioned, this implies you won’t need to put up your house or car to successfully secure the amount. They are based on smaller amounts, so repayments are more affordable. It is also possible that the convenience of more than one repayment option can be presented to the borrower. A poor credit record due to falling behind with a previous account, for instance, will not necessarily prejudice your loan application here, provided reasonable steps have been taken to address the default.

Major lending institutes can easily reject applications, even for qualifying candidates who can afford it, on the basis of a relatively marginal credit default. This is exacerbated by poorly compiled and submitted applications. With cash loans, coupled with reliable and efficient online applications procedures via reputed facilitators, this isn’t a problem anymore.

How do I apply for one?

You can get a micro finance loan in the space of a day, with no more paperwork than if you were getting a mobile phone. This is minimised further with secure online applications. The services of an accredited and registered company will not only be able to smooth the entire application, but also address various queries you may have. A quick cash loan for up to R15, 000 requires you show only a bank statement, payslip, and proof of identification and residence. That means it can be completed and cleared into your account between 24 to 48 hours, sometimes even on the same day.

You can find good microloan providers easily by simply searching online. Your provider should be knowledgeable and be able to explain their requirements and the procedure clearly. Once you’ve already assessed the website and found your specialist facilitator, micro finance loans provide a simple, powerful solution to everyday cash flow challenges.