The micro loans online are usually for small amounts to pay in the short, medium or long term. In this case, the micro credits or micro financing already have some history behind.
The Micro Online Loans
Over time, financial institutions realized these benefits. Actually a micro loan has up to 98% chance of success being paid. These small amounts make the debtors feel more supported and committed to pay the credit that was granted.
Typically, micro credits during the second half of the 20th century and up to the present have been destined to people without endorsement or credit history. An Irish institution that grants micro loans in low-income communities.
Micro loans in numbers
- A micro loan has up to 98% chance of being paid
- They are loans in small amounts to be paid in the short term
The role of the Internet in facilitating the granting of a micro-credit
Financial institutions soon realized the great benefit of online transactions and services. That is why, in the 21st century, Internet loans have helped to activate the economy in a much faster and more practical way.
Previously, to obtain a micro credit, you had to physically go and process it in a banking or financial institution. Thus taking a lot of unproductive time to obtain a small amount. In addition, for the same reason of having old rules, the power to finally get the loan involved many requirements and patience.
The procedures on the internet are very simple, for example, you are asked to fill out an application, this is to get to know you better since all the paperwork is being done online, without physical contact. After a couple of hours you will have the loan deposited in your account, or you will know if you were rejected and the reason for it. There are no rows, there is no bureaucracy, everything is done from your computer.
Advantages of obtaining a micro loan online
The obvious reason is that you need money, and the loan you get in a couple of hours, thus alleviating your need almost immediately. However, let’s think beyond this transaction. Here are some of the advantages of obtaining a micro loan online:
- You generate credit history. We have already discussed this topic in another of our posts, and we invite you to read more in depth here. In short, getting a micro loan online will generate a credit history, even if you do not have one. Even if you have a bad history, get the loan and pay it on time, it will counteract the negative state of your history.
- It is a great method of micro financing. Let’s say that you reached the limit of your fortnight or monthly income. Obtaining a loan online, will help you finance a few days until you have more liquidity. This without affecting your economy or preventing you from following your normal lifestyle, or if you do it to have more liquidity in your business.
- Training. If as such you are looking in the future to obtain a bigger loan to buy a house, a car or go on a trip, starting with a loan online will give you the guide to know how much time you have to pay it. It will give you a sense of responsibility and you will measure your chances of getting bigger loans in the future.
- Savings in time and effort. It is not the same to sit on your computer a few minutes and perform a procedure, go to the bank and wait for days after submitting several documents to know whether or not you will be creditor of a loan. Do it fast from anywhere.
- Instant Information Access to instant information, which a traditional bank does not have, provides much more knowledge to the institution that will grant the loan, thus reducing the risk of the transaction, increasing the tranquility of the borrower, and raising the success rate for both the accredited as for the financial institution. Without this type of information it is very easy for a traditional bank to reject clients due to lack of information.
As you can see, a micro credit has been in existence for several years now, but now online loans make it much easier for you to have liquidity, a better credit history, and a better use of your resources.