Microloans

Where is the best place to get a microloan?

When a person needs a loan for a large amount, he goes to the bank. If a loan is needed for a small amount and for a short period of time, she will try to borrow from relatives or friends. And if this is not possible, then the issue can be resolved by applying for a microloan from an MFO. Microcredit services are now very common – many people with incomes around the average take out various entire microloans.

What is a microloan?

Microloan is a loan issued by a microfinance organization (MFO) for a short period and for a small amount. This is the main difference from a bank loan (when large amounts are issued for a long period).

Additional differences:

• most bank loan programs are issued for a specific purpose, there are few non-targeted loans (while MFOs have all non-targeted loans, you can use the money at your own discretion);
• banks always require you to provide a package of documents (including a certificate from your place of work indicating your salary); they often require collateral and a guarantor (you can get a loan from microfinance organizations without a certificate, without collateral, and without a guarantor).

The registration process itself also differs. At some banks, you can submit a preliminary application online, but you will still have to visit the branch in person to complete the application. The entire procedure (including collecting documents and reviewing the application) can take from 1 full working day to several days.

In MFOs everything is much simpler: the only documents you will be required to provide are your passport and Taxpayer Identification Number. You can get a microloan without visiting a branch in person – entirely via the Internet. The entire procedure (if you have already chosen an MFO where you will take out a loan) will last about 1 hour for the first application, and about 15-30 minutes when applying to the same company again.

General conditions under which a microloan can be issued

Most Ukrainian microfinance organizations operate under approximately the same conditions. Of the main ones:

1. The maximum amount that a client can receive upon first application is 5–10 thousand UAH. Some companies raise the “ceiling” for those clients who apply again and who repaid their previous loans without problems (on time).
2. The maximum period for which a loan is issued is 30 days. The minimum usually starts from 5 days. For regular customers, better conditions are possible – the repayment period can be extended to 45-60 days.
3. It is possible to extend the repayment period if the client encounters unexpected difficulties. If the client does not start avoiding calls, but reports that he is not meeting the deadline, they can increase it. Maximum – for the same period for which the loan was approved.
4. Payment method: cash or transfer to card.
5. The method of submitting an application is a personal visit to an MFO branch or an online application through the website.
6. Required documents – original passport and TIN.
7. The estimated processing time is about 1 hour upon first request.

Another important nuance: MFOs are ready to give money not only to people with an official place of work and an above-average income. Microloans can be obtained by students, the unemployed, and pensioners. Some microfinance organizations also cooperate with clients who have problems in their credit history.

Advantages and disadvantages of taking a microloan online

A quick microloan online is the best option for quickly solving temporary financial problems. Paying off debt, treatment, buying equipment, traveling and other issues can be resolved with money on the card within half an hour. 

Many people have misconceptions about MFOs and consider their activities to be evil. But if you use an online calculator and correctly calculate your financial capabilities, the interest rate can quickly pay off the debt. In addition, closed loans are an effective way to improve a damaged credit history, and an instant online microloan will be expanded the next time you apply. 

What are the advantages of choosing to take a microloan online:

• minimum requirements for the borrower. This is a loan without certificates, collateral or guarantors. The optimal solution in case of refusal of a bank loan, for persons without official employment, with a bad credit history. In most cases, an online microloan is approved automatically. More than 90% of requests receive funds credited. In this case, the obligatory requirement is reaching the age of majority and citizenship of Ukraine. Exceptions may include persons living in temporarily occupied territories, borrowers who have had negative experience of cooperation with a specific microfinance organization. 
• speed. To get a loan from a banking institution, you will need time to visit it, collect documents to confirm solvency, a guarantor or collateral of property. But even in this case, the bank’s refusal is possible. An online microloan means quick loan approval. Time for registration from 5 minutes. up to 30 min. The money will come to your bank card, and the risk of refusal is only about 10%. When you contact the microfinance organization again, the borrower’s data may appear in the company’s database, which will further reduce the processing time.
• convenience and simplicity. You can fill out an online application for a microloan without leaving your home. Internet access is sufficient. Most companies offer an urgent microloan service online around the clock, 24/7, without holidays, weekends, or breaks. You can choose how to receive a loan: instant microloan online to a bank card, cash, instant transfers. Debt repayment is also convenient; at the client’s choice, payment can be made through a personal account on the website, through a cash desk, Internet banking, service terminals, etc. 

What are the disadvantages of an urgent microloan online? Online microloans are known to many for their high interest rates. Therefore, these are mainly short-term loans for one month and the amount of 5-15 thousand hryvnia. Often, MFOs offer favorable offers at the first application – an interest-free loan or a low interest rate. Even with a high rate, it is important to make payments on time, because the contract stipulates penalties and charges for late debt. It should be remembered that an online urgent microloan, like other services of microfinance organizations, is regulated by the legislation of Ukraine. 

List of companies that can quickly issue a profitable microloan

Are you planning to apply for a microloan, but don’t know which microfinance organization is most profitable to apply to?

A microloan to an online account in a wide selection of offers is presented on the Bank-ua online loan comparison service. This site contains information about all reliable Ukrainian microfinance organizations. In one place you can compare conditions from different companies, choose the most profitable option and immediately go to the website to fill out an application. The entire search process can take literally a few minutes.

1. Indicate the optimal conditions from the microfinance organization.
2. Go to the website and read the terms and conditions of the credit company.
3. Use a loan calculator to see how much you need to pay and what interest on the loan.
4. Fill out the form with correct personal data.
5. Expect notifications about loan approval and funds transfer.

An online application for a microloan will take a minimum of time, and simple requirements and automatic approval will allow you to receive money in the shortest possible time. At the same time, it is important to beware of scammers, choose proven microfinance organizations with online payday microloan service via the Internet, pay attention to the presence of a license, the reputation of the credit company, and customer reviews. 

Information about our partners