If you have an interest in taking a micro loan, it is a good idea to first compare the prices of the various loan institutions that lend money in this way. What you will notice quite quickly then is that it can vary well in costs for the various institutes. Price differences of USD 200 – 300 for a micro loan of USD 3,000 are not at all uncommon. If you make sure that the lowest prices are in those regions, then it means that the most expensive places in principle cost twice as much to borrow from. Then there is also no real difference to the loan itself, which means that it is just a waste of money to borrow from an expensive lender.
What is a Micro Loan?
If you have found it here, you probably know exactly what a micro loan is, but we were going to take it up a little bit anyway. A micro loan is actually a very common loan that you can obtain from a number of different loan institutions. What distinguishes micro-loans from the bank loans have, for example, is that the loan amount is much smaller, hence the name micro-loans. It is the size of the loan and then also how long you get to borrow the money that is different, a micro loan usually only lasts for 30 days, as opposed to several years for larger loans. In recent years, more alternatives have come up in terms of maturity and now it is not uncommon for three months or more.
What to look for when comparing micro loans?
A micro loan is a little different compared to the larger loans we have written about previously. This means that there are also slightly different things to look at when comparing micro loans. For example, the effective interest rate is not as interesting for micro-loans as this is a figure that you generate by calculating all costs and interest rates and then eliminating this as an annual interest rate. Because micro loans are very short, the effective interest rate becomes a little difficult to manage for this type of loan. You can get figures well above 1,000% without any problems, which does not correspond to the cost you really need to pay.
The repayment period which is also interesting for many loans as it may be that the economy is better suited for a certain maturity. However, since all micro loans have basically equal repayment periods, this is also not something interesting to compare. What isf this is interesting is to compare for yourself what it costs to borrow a certain amount in say 30 or 60 days.
You can also consider if you intend to take other micro loans in the future, as there are a number of loan institutions that, for example, only lend USD 2,000 to new customers. If you have then repaid this loan, you will then be able to borrow more next time. This could affect your choice of loan institutions when comparing micro loans.
What determines when you compare micro loans?
When you compare micro loans, you will quickly notice that most are very similar if you ignore the price. This means that it is likely that you will largely only compare the cost of the loan.
The tip is that you really compare the different micro loans as this can save you a few hundred bucks that can definitely be used for more fun things.
Compare Micro Loans on Mortgage
We have compared micro loan rates for a number of different loan institutions. Hopefully this can be an instrument that will help you in the search for the loan that suits you best.
To make it as good as possible for you, we have divided our comparisons into a number of different categories. For example, you can compare micro loans for 1,000, 2,000, 3,000 and micro loans if you have payment notes.