Many may be familiar with the situation when money is needed here and now. Whether you are a natural person or a legal entity, you may have difficulties with the finances that were sharply needed to cover the debt, the necessary purchase or for the development of your own business. You can apply for a loan from a bank, but in addition to them, the Payday Loan also gives loans to the market, and they do it on a rather large scale. For example, in the capital of such organizations officially there are almost a thousand.
How to properly take a microloan
Director of the Russian Microfinance Center shared information on how to properly take a microloan and how much such funding can be useful for young businessmen.
First of all, payday loans should be divided into three categories:
1. “Loans to salary” – some kind of express loan for a short period. The interest rate in this type of lending is quite high, but it is a question of small amounts. Thus, the payment on the loan in the end can be 1.500 – 3.000 rubles. But such payday loans are more suitable for individuals, in cases where money is needed now, and before the salary a few more days.
2. Provides lending services, according to characteristics similar to a conventional loan in a bank. Here, the dates are already calculated in months and the rate on such loans is close to bank loans – 25% – 30% per year. The usefulness of such payday loans for small businesses is already causing much less doubt. In addition, applying for and getting a loan from an Payday Loan is easier and faster than a bank loan.
3. Non-profit organizations created to support small businesses that have the right to issue loans, having budgetary funds in their assets. Often, by applying to such a fund, you can count on a loan with a small interest rate – about 8% per year.
What is the Payday Loan different from a bank loan?
Payday Loans should be treated a little differently than bank loans. Payday Loans can help small businesses more often than banks. They are more suitable in the case when money is needed urgently, a vivid example of this is the cash gap. Unlike banks, Payday Loans have a more flexible customer relationship policy, and there is an opportunity to choose an individual solution. If an entrepreneur turns to non-financial organizations, he must be prepared for the fact that his candidacy may not be suitable for the requirements relating to the type of the company’s activities and the purpose of the loan. With regard to the use of budgetary funds issued – it will be necessary to report to the creditor on what and when the money was spent.
How to verify the authenticity of a Payday Loan
In order not to fall into the hands of fraudsters, you need to make sure that the microfinance organization acts legally. All existing Payday Loans are registered in the RTT Finance register, in order to check the company that the borrower decided to contact, you need to go to the Bank of Russia website and, without registering on the resource, find out the authority of the organization. Also, all Payday Loans must be members of an Self-Regulatory Organization. There are several such organizations, with their list, also available on the Central Bank website. And already on the resource SRO find the right organization.