This lending facility is suited for low-income entities such as micro-enterprises and entrepreneurs, low-income families, start-ups, small businesses, and anyone who cannot access financial assistance for their businesses. Entrepreneurs and anyone experiencing difficulty obtaining loans can apply for instant microloans during difficult times. Microloans have the following objectives:
- Development of the socio-economic system
- Starting up a business
- Strengthening self-help groups
- Increasing the independence of female entrepreneurs
Why are micro-loans a good idea?
An individual’s ability to repay micro-business loans completely depends on the type of business, the type of borrower, and many more factors. Those who run small businesses and need a quick but small amount of cash can benefit from this offer. To save money and get a higher loan amount, apply for traditional bank micro business loans if possible. Microloans are particularly beneficial for low-income business owners who need immediate funding.
Tips to consider before applying for microloans
Microloans have higher interest rates
Microfinance companies typically do not have the same cash at their disposal as traditional banks. Their Micro loans process involves accumulating funds from several sources, which is time-consuming. As most of the borrowers come from rural areas, their operational costs are also higher. For those reasons, the interest rates are higher.
You don’t need to pay interest on the whole amount, just the part you use.
Instead of repaying the entire amount of your loan, FlexiPay allows you to repay only the interest that you have incurred on it.
The microloan application process is a fairly simple one.
Generally, the loan application is filled out online by visiting the official website of the chosen microfinance company. Then submit the form completely along with all the required documents. Once this Micro loans application undergoes assessment, a representative from the selected company will contact you to discuss the next steps. After verifying your documentation, it usually takes 24 hours to disburse Micro business loans funds.
Micro loans are for all kinds of borrowers.
You can apply for microloans if you meet the eligibility requirements and prove your lack of funds for your business.
You have the option of customising your EMI payment method.
For microloans to women and micro-entrepreneurs, you make weekly payments, bi-weekly or monthly, while You make monthly payments for most microfinance.
You can apply for microloans offline and online.
There are several large microfinance firms throughout the country, and many of them have branches in prestigious cities. You may also apply for your micro business loans offline by visiting the branch and speaking to a customer service representative. There is only one issue with doing this: It will require more paperwork and perhaps a few visits to the branch. In addition to this, you can hire someone to fill out the online application for you, such as a financial advisor or accountant.
You can only apply for one microloan at a time.
Those who have already applied and successfully received micro loans from one microfinance company cannot apply for another.