Strategies for Acquiring Microcredits: Guidance from Financer.com
Going Small, Going Now: The World of Microloans in Kazakhstan
If you need a quick cash boost in Kazakhstan, microloans are your go-to. These tiny credit offers, ranging from 10,000 to 200,000 tenge and spanning from a week to a month, are easily accessible, but come with their own set of terms. Financial expert Yevgeniya Nikolaevskaya helps break down the market and what you should know before diving in.
Venturing into Microloans
The simplicity of obtaining a microloan is undeniable. You just need to be over 21, a Kazakhstani citizen, have a bank account or card for funds transfer, and a mobile phone number. With internet access, you can secure a loan without leaving your home.
Weighing Your Options
Comparison is key when considering a microloan. Compare the offers available, their terms, and interest rates. Also, check if there's an option to extend the loan if you're unable to pay on time.
In the Realm of Zero Percent
Some microfinance institutions (MFIs) might tempt you with 0% loans, especially for first-time borrowers. These loans require you to pay back exactly what you borrowed, but late payments will incur interest. Small sums over short durations make these loans convenient for bridging financial gaps until your next paycheck.
Credit Services: The Intermediaries
Not every company offering loans is an MFI. Pay attention to the services provided by the company you're dealing with. In Kazakhstan, you'll find credit services—companies that act as intermediaries between borrowers and lenders. These companies allow you to submit a single application to multiple microfinance organizations. They issue loans for longer periods, such as three to six months.
However, using a credit service comes at a cost. A portion of your card balance will be deducted regularly until you cancel the service. To avoid surprises, carefully read the contract before entering the SMS code, serving as your digital signature.
Tips to Remember
- Don't shy away from credit, but read contracts meticulously and ask questions
- Negotiate terms for mutual benefit with the lending institution
- Strive to repay loans early to save money
- Monitor your credit history – it's crucial while applying for any loan, from online loans to mortgages
Financer.com advises carefully considering your financial capabilities before taking a loan. A loan is essentially buying money, so ensure you can pay the full amount when the loan term ends.
Getting a Loan in Kazakhstan: Details and Insights
- Secured Loans: Many microfinance organizations, like Mogo Kazakhstan, primarily focus on secured loans, which may demand collateral to lower risk.
- Short-Term Loans: Short-term microloans, up to 45 days, are widely available.
- Caps on Interest Rates: Kazakhstan has imposed caps on the annual effective interest rates (AEIR) for microloans, restricting the AEIR to 46% for microfinance organizations.
- Repayment Options: Specific repayment choices can differ based on the microfinance organization and loan type, but microloans are generally designed for short-term financial necessities and require timely repayment.
- Flexibility: Some microfinance organizations may offer flexibility in repayment terms based on the borrower’s financial situation.
Exploring Personal-Finance OpportunitiesIn the world of Kazakhstan's business, microloans provide a viable personal-finance solution for quick cash needs.
Choosing the Right DealWhen considering a microloan, it's essential to compare different offers, terms, and interest rates, and to be aware of any options for loan extension.
