Myths about microfinance organizations

Myths about microfinance organizations

The increase in the volume of microfinance in Russia is restrained by numerous “horror stories” distributed by the media and unscrupulous competitors. A negative image is formed due to the lack of complete and reliable information about the work of MFIs, as well as the periodic appearance of the microloans of unreliable creditors in the market that violate the law. We will tell you what myths about microfinance organizations exist and how justified.

Myth No. 1. MFIs - illegal companies with a dubious reputation

The activities of microfinance organizations are controlled by the Central Bank of Russia. Any structure included in the market is entered in the state register of MFIs and is in accordance with the norms of the law. A guarantee of the fulfillment of obligations is a bilateral agreement, which is mandatory registered in Rosreestr. The rates, penalties, amounts and loan terms can be found out even before the transaction.

Myth No. 2. MFIs give out only microloans "before salary"

Some organizations really work only in this format. However, in practice, the range of services of many MFIs is much wider. These are loans up to 2 million rubles for up to 5 years, including On the security of TCP, car, real estate. Such a loan can arrange an individual and legal entity, including Online on the site Goszam.rf https: //goszim.rf/ . Here you can take a loan for any target, at the rates below the average market.

Myth No. 3. Microloans are unprofitable

Banks devote each potential borrower from 5 days or more. They request a credit history, require certificates confirming solvency, a copy of the work book. Inspectors even call up with the employer, finding out if there are plans to fire you in his plans. If the amount of income of a potential borrower is small, the creditor suggests attracting a co -borrower or guarantors.

Such a thorough verification allows banks to minimize the risks of non -return of the loan, which means to establish a loyal rate. MFIs issue funds in a matter of minutes, without providing certificates and studying credit history. The risks are great, and, accordingly, the rate will be higher than in the bank. If you need money urgently, MFIs are the best option.

Carefully study the terms of the contract, evaluate all the pros and cons, as well as your capabilities. In this case, surprises, and even more so “terrible” stories about how the MFI “robbed” the next gullible borrower cannot be.

Myth No. 4. MFI clients are only poor who have nothing to lose

According to the official figures of Rosstat, people with an average income prevail in the list of clients of microfinance organizations. In recent years, the number of loans issued to legal entities and individual entrepreneurs has increased. The main goal of loans is to buy gifts, repair of housing, urgent treatment, a trip to leave and replenishment of working capital (for Southern Authorities).

Myth No. 5. The purpose of the MFI is to get a superprofit, having driven the borrower into the debt hole

At the legislative level, the limit of maximum debt that MFI may require. Restriction - double debt size. So, if you received 30 thousand rubles, regardless of the delay, you will need to return no more than 60 thousand companies that have come to the market for a long time and seriously are not interested in delay. Therefore, they are ready to compromise, offering customers who are in a difficult situation, debt restructuring, refinancing, interest frost, credit “holidays”, etc.

Compared to other countries, the microfinance market in Russia is not yet sufficiently developed, including due to the financial illiteracy of the population. MFIs, like any other credit institution, has advantages and disadvantages. Remember that all the features of any type of loan are prescribed in the contract, and you can evaluate them even before the signing of the document.