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Even if you have never resorted to the help of an MFI, you have most likely heard about the existence of such firms. At the same time, many myths are associated with microcredit and its implementing structures. You can see it on the website "ikredit.in.ua". list of all microfinance organizations of Ukraine. Before you study your ego and take out a quick loan, you should learn more about the MFIs themselves. Let's consider the main points.
MFI - what is it?
Microfinance organizations are hidden under the abbreviation "MFI". That. companies that offer fast and reliable credit. The number of approved loan applications is 80-97%.
Firms are ready to cooperate even with borrowers who have already been refused support by banks:
- Pensioners, mothers on maternity leave, students, officially unemployed citizens;
- Clients with a damaged credit history (including active arrears on second loans and unpaid loans);
- Citizens who cannot provide any documents other than a passport and TIN.
MFIs can carry out their financial activities both offline and/or online, and completely remotely - in a global network with the help of a website.
Let's say right away that there is no significant difference for the borrower: it is possible to find favorable microcredit conditions in MFIs of any type. But if you are interested in cash loans, you should contact a company with an offline representative office. In this case, after submitting the application and approving the request on the site (which will take no more than 15-30 minutes), you will only have to visit the nearest office of the organization.
How legal is the activity of the MFI?
Many myths about microcredit are related to the fact that in previous years the activities of MFIs were not controlled by anyone. Unscrupulous firms without any documents deliberately hid the interest rate, unexpectedly increased it, provided for additional commissions and fees in the contracts. I took one sum with interest, the borrowers were forced to pay another.
Today, the state of affairs in the microcredit market is completely different. Absolutely all MFIs of Ukraine are obliged to receive:
- License for the right to provide financial loans;
- Registration certificate.
The issuance of documents, after a thorough examination of the candidate for licensing, is handled by the National Financial Service. Moreover, subsequently the structure also closely monitors the work of the MFI.
It's important! Before applying for a microcredit, make sure that the company you have chosen has the specified documents and that their validity period has not expired. You can find relevant information on the official website of the MFI (as a rule, it is indicated in a separate section or at the bottom of the main page).
If the MFI does not have a Certificate or License, it is carrying out its work illegally. By the way, the National Committee of Financial Services can revoke documents for various reasons, including for deceiving borrowers. It is not easy to issue permits again, so fraud claims are simply unprofitable even for the creditors themselves.
Obligations of microfinance organizations
The rating of all MFIs of Ukraine includes only licensed organizations that meet the requirements of the National Financial Service Commission. According to the regulator's order, microfinance companies are obliged to:
- Inform the borrower about the full amount of the loan. The amount to be repaid, which the online calculator will show you when you apply for a microcredit, will be final. In the future, it can change only if you cannot pay the debt on time. Thus, you can not be afraid of an unexpected rate increase or hidden commissions;
- Indicate the full amount of the annual loan rate on the site. Information can often be found at the bottom of the page (it is indicated in small print);
- Place information on the availability of legal documents on the portal (numbers or scanned copies of Licenses and Certificates must be publicly available at all times). Each borrower must have the opportunity to familiarize himself with the documents and conduct their inspection.
Recent reviews of microfinance organizations in Ukraine prove that MFIs began to work honestly and openly. After all, it is beneficial not only to the borrowers, but also to them. Microlending brings a permanent and stably high income, in contrast to the demands of deceiving clients.
MFI lending conditions
MFIs are companies that offer quick loans under certain conditions:
- The interest rate is calculated for each day of use of borrowed funds, and usually amounts to 1,5-2% per day;
- Credit terms - microcredits are issued for a short period of time up to 1 month with the possibility of extension and early repayment of the debt.
Important! Recently, more and more MFIs have appeared in Ukraine, providing long-term microloans for a period of 2-3 months to 1 year.
- Limits - minimum and maximum amounts from 500 hryvnias to 15 thousand hryvnias. The maximum limits in some MFIs have been increased to 20-30 thousand hryvnias. But only reliable borrowers with a long history of cooperation with MFIs can count on the maximum.
Each microfinance company has the legal right to set its interest rate (within reasonable limits), and to determine its limits and terms of lending.
Rights of MFIs in relation to borrowers
In relation to borrowers, MFIs have the same rights as ordinary banks. In case of non-payment of the debt, the company can transfer the case of the defaulter to the collectors, and then to the court.
The credit agreement must specify the client's responsibility in case of overdue microloan, in accordance with which penalties and fines will be charged to him.
