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Online Microloans – Frequently Asked Questions

Before resorting to services of online microlending organizations, it is necessary to be aware of all the nuances of the deal. In order to keep you 100% informed, we have prepared answers to the most frequently asked questions so that you know everything.  

What Is a Payday Loan?

A microloan is a quick form of lending, which allows you to get money with a minimum package of documents. The main features of payday loans is a short term and a small amount of money provided to a borrower.

Who Can Apply for an Online Microloan?

Every citizen at the age of 18 or more can submit a loan request. The status and type of employment are not taken into account when considering an application.

What Risks May a Microloan Entail?

There are no risks at all. All personal information provided by the borrower remains hidden; the data are used only for person identification and financial reports. Even if you are unable to return the full amount on time, repayment terms can be extended upon request.

What Is More Profitable: a Microloan or a Bank Loan?

If you need a large amount of money and have a high income level with a certificate proving it, then you can count on a bank loan. In case you need money right here and right now and there is no certificate proving your paying capacity, a microloan will be a good option for you to solve a financial problem within an hour.

What Is the Procedure of Obtaining a Microloan?

You can obtain a short-term loan in a microfinance institution in two ways. You can visit the company central office or fill out an application on the official website of the organization. The second option is more convenient, as it allows you to get a microloan in a few minutes.

The process of obtaining a payday loan occurs in 4 stages:

  • Account registration on the website;
  • Filling out an online form;
  • Waiting for personal data verification and receiving a response from a financial manager of a microfinance organization;
  • Signing a loan agreement and receiving money on your credit card.

After receiving the money, you can immediately use them; there is no need for you to report on how you are going to use a loan.

What is the Interest Rate of a Microloan?

As a general rule, the interest rate on microloans ranges from 0.01% to 5% per day. You can calculate the amount to be returned in a special form on the official website of each company before submitting the application.