A microfinance company reliable? What is normal?
consumption loans is not new, but bank loans are becoming more and more difficult, while many microfinance companies have mushroomed into the public eye. But as the network environment is quite a mixed bag, so many people who wanted to borrow doubt on the reliability of a microfinance company. A microfinance company reliable? How loan companies is normal?
first of all, we come to understand what is a microfinance company. A microfinance company is invested by a natural person, Enterprise legal persons and other social organizations, does not take deposits from the public and companies engaged in microfinance business. Microfinance company because the loan procedure is simple, large range of mortgage and pledge (mortgage-free, even free guarantee), flexible features, and quick access to individuals, small businesses cannot get loans from traditional banks such as customers of all ages.
in fact, formal microfinance company are absolutely reliable. Formal microfinance companies are legally allowed and non-bank financial institutions approved by the business sector, establishment of conditions are very harsh. Therefore, formal microfinance company is less justified. However, many cheats banner of microfinance companies, and losses to the borrower. To determine whether microfinance companies, set out from their qualification. In General, micro-credit lending company process specification, if you get a loan before charging fees, are deceptive. Next, see if lenders charge compound interest, commonly known as "arbitrage" if so watch out for problems. Also, the rate of a microfinance company is now clearly defined, cannot be more than 4 times times the benchmark interest rate of bank loans in the current period, if you exceed may also be untrue.