Before taking out a microloan, it is necessary to assess the pros and cons of the financial product, to weigh all factors so that the microloan will be beneficial. If offers of cash advance apps did not represent a benefit to users, they would not be in high demand in the consumer market.
Advantages of microloans
Regardless of the specific program, the positives and negatives of microloans are common in every case. The advantages of this financial instrument are:
- high speed of decision-making – banks reduce the time of consideration of applications, but the waiting time for an answer remains long. People do not like to wait long, so MFI products remain in demand, programs check the potential borrower within 5-10 minutes of receiving the application;
- instant money receipt – consideration of the application may be prolonged if additional documents are required, but crediting the money after approval is carried out without delay. The amount will instantly appear on your electronic account or bank card. In rare cases, crediting the money may take up to 3 days;
- application from anywhere – the Internet simplifies life, it is more convenient and faster to submit an online application, filling out the form will take no more than 5 minutes. You only need access to the Internet, you can apply from your PC, tablet or smartphone;
- transparency of terms and conditions: MFI stipulates the cost of the loan right away. The client enters the amount of money he wants to borrow, indicates the period of use, and immediately sees the amount of overpayment. Then he makes a decision about accepting or refusing the loan;
- client with a ruined credit history may receive a loan: in the time of crisis, banks select borrowers more strictly and lend only to loyal customers. Many people are denied money. MFI willingly lend money to clients with a bad credit history, putting the risk of default in the interest on the loan. More information on the website: https://apps.apple.com/us/app/cash-advance-tsaip-loan-app/id1492828465.
Disadvantages of microloans
The disadvantages of this financial tool include:
- high interest rate – hundreds of percent count for the term of the loan up to 30 days. The average term of a microloan is 14 days. When drawing up a loan it is necessary to look at the annual rate and the final amount of the overpayment;
- small loan amount. Micro loan solves small tasks with urgency and small amounts;
- short term – usually up to 30 days, less often up to 4 months.
If you want to take a micro loan, you should study the advantages and disadvantages of these tools.