MFI is a reliable assistant in difficult times
The difficult situation in the global economy and in the market causes financial problems for many Filipinos. When you need money urgently, this could be a problem, especially if there are not many options. You can try to borrow money in a bank or ask relatives and friends to help you, but there are no guarantees that it will work. If the borrower wants to apply for a loan in a bank, usually he needs to collect a solid package of documents and fulfill an impressive list of requirements. Moreover, friends and relatives may not have spare money at all for him to borrow.
Loans are a simple form of short-term financing that is processed in 10 minutes, and you can get money without leaving home. Such organizations as MFIs allow you to get a small amount for a short time when you need money right here and now. As a rule, it is from 1,000 to 25,000 pesos for a period from several days to a month. The selected term is based on when exactly you can return your debt, so such a financial product is called payday loans.
A good way to get a loan quickly is applying to a microfinance organization. You just have to choose a reliable organization with a good reputation, evaluate loan terms and conditions, and make the best choice.
MFIs are divided into two categories: microfinance and micro-credit companies. The first type is the organizations that provide small loans. This is a good way to receive money while you are waiting for your payday. As a rule, the interest rate of such organizations exceeds the average and may be higher than in a bank. But in return, the borrower can get acceptable conditions for the approval of his application, minimum data processing time (if the process takes 1-3 days in a bank, then the MFI transfers money in just a couple of minutes or instantly).
Don`t forget that profitable and safe cooperation with MFI is possible only if the borrower fulfills all the requests of the organization. If you return money with the interest within the prescribed period, the amount of overpayment will be minimal. But if you have any delays in regular payments, a penalty is charged every day, which will increase the total amount of debt. If you want to avoid unpleasant situations, you need to choose MFI wisely in order to get the best conditions. For example, you should be able to prolong the contract. Also you can take a loan without paying any interest at all if you are a first time borrower.