Microloans: What are they and are they for me?

If you have come this far it is because you have a small project in hand or an unexpected expense, if so we tell you what microloans are and what advantages and disadvantages could be involved in applying for one of these financial products. Take pen and paper, let’s get started!

What are microloans

Microloans are financial products through which you can have a small amount of money in a short time. What characterizes microloans?

  • Amount to request: the amount granted in this type of loans are small amounts, which usually have a maximum of 750 euros. These financial products are not intended to help you undertake a project or renovate your home, but to be an option in case you need a small amount of money quickly.
  • Repayment terms: the borrowed money must be paid back in a short period of time, usually about 30 days.

Advantages and disadvantages of applying for a microloan

As with any financial product, applying for a micro loan has a number of advantages over other possibilities, as well as disadvantages.

Advantages of applying for a micro loan: they are financial products whose process is usually fast and simple so that the applicant obtains the required amount in the shortest possible time. In addition, there are usually many facilities such as the possibility of managing everything online, so getting a micro loan online will be easy for those who need it.

Disadvantages of applying for a micro loan: the biggest disadvantage is the price, they are usually very expensive financial products for those who apply for them since the commissions in this type of financial products are usually very high, multiplying the interest rates of personal loans. On the other hand, contracting micro loans negatively affects your future ability to obtain financing with other financial institutions (e.g. when financing a car), since it is a product that is associated with higher risk customer profiles.

We want to help you, so we are going to give you a good advice as a friend: when assessing financing bet on agile and transparent loans, that from the beginning you know what the conditions are and you are happy with them and whose interests are reasonable. Applying for a loan is part of the process of growth, both personal and labor of a person, we should not be afraid, just make good decisions!




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