A conditional week was left before the salary, and the money was needed yesterday. You couldn’t put it off for a rainy day, your friends can’t help out. Is it worth taking a micro loan and what you need to know about it? If you need a cash, try cash advance iowa.

Microlending: how it works and what you need to know about a loan from an MFI
First, decide if your situation is really so critical that you need to borrow money to solve it.

Secondly, assess your capabilities: borrowed money must be returned, and even with interest. Will you be able to repay the loan on time without severe damage to the future budget?

So, money is still needed, and you are thinking about a loan or loan. This is a common and easy way to solve a temporary financial problem. It is only important to follow a few rules.

I need a loan or loan. Where to begin?
Select a lender
First you need to decide where to borrow. There are two most common options with their own characteristics: a bank or an MFI — a microfinance organization. If you have enough time, a good credit history, and you can easily provide all the necessary documents — contact the bank. The bank will give you money for a long term at an interest that will be noticeably less than with a loan from an MFO.

If you do not have time or are not sure that the bank will approve a loan for you, and you need a small amount and for a short time, you can contact a microfinance organization.

MFIs were once created to support small businesses that cannot always count on bank funding. But among ordinary people, the quick loan service has also become in demand, so MFIs also issue consumer loans (including payday loans). But the percentage of such a microloan is much higher, so you cannot live with it for a long time — it was not invented for this and will start «eating» your finances.

Microlending: how it works and what you need to know about a loan from an MFI
In the consumer microloan agreement on the first page in the upper right corner in a square frame in front of the tabular form of individual conditions, the full cost of the loan must be indicated in percent per annum.

The first and most important thing to do if you take a microloan from an MFO is to check if the selected company is in the state register of the MFO — this way you will protect yourself from fraudsters.

When you contact the MFI and they tell you about the terms of the loan, do not rush to sign the agreement right away. You have 5 days to think about the offer that has been made to you. Conditions during this time can no longer change. Take a break and check if the organization you have selected is on the registry. The data in the contract must fully correspond to the data in the register: PSRN, TIN, full and abbreviated name, address of location.

Rate the offer
Even if you need money urgently, take your time and do not make hasty decisions: evaluate the proposals of different companies. Although micro-loans are issued for a short term, keep in mind that 1% per day is 30% per month. Consider whether you are really willing to overpay so much.