Is it possible to take a loan for a long time in the MFI Automatic translate

Microfinance organizations are characterized by the fact that they issue small loans for a limited period of up to a month. However, this time is not always enough to solve the financial problems of users, so they are forced to issue an extension. To make life easier for clients, many microfinance organizations have extended the loan term to 2 or even 12 months.

What is the peculiarity of a long-term loan from an MFI

A long-term loan has a number of features, and this is not only an extended loan term. Such loans are issued at a reduced (in comparison with short-term loans) interest, which is charged monthly. In addition, the method of repayment is different: the borrower can repay a short-term loan in any convenient installments during the term of the contract, while a long-term loan must be paid in equal monthly installments.

You can get acquainted with the conditions of companies that offer long-term loans in Kazakhstan here: https://nacredit.kz/na-dolgij-srok/ . All companies listed in this section of the NaCredit.KZ directory are verified and safe for borrowers.

Why do residents of Kazakhstan often turn to MFIs to get a loan?

The reasons for the popularity of products from microfinance organizations are simple and obvious. Among them:

1. Ease of applying for a loan . To receive money, you do not need to collect a pile of documents, go to the office and wait in line. It is enough to fill out an application on the site and receive funds on the card.
2. Availability . The bank puts forward many requirements for customers; in order to receive a loan, you usually need to confirm the presence of official employment and have a positive credit rating. In an MFI, even a student or a pensioner can take a long-term loan without confirmation of a place of work.
3. Work schedule . As a rule, banks are open 5 days a week, from 9 am to 6 pm. Microfinance companies that issue loans online provide services around the clock and seven days a week. Most of them only consider applications at night and issue a decision, but some may transfer funds late in the evening or on weekends.
4. Issuance speed . A long-term loan is issued very quickly, you can apply and get money in just 30 minutes. Some companies are able to issue a loan in 5-7 minutes.
5. Credit history . When contacting the bank, the user’s credit history will be taken into account. In this regard, it is difficult for customers with a bad history to get a cash loan from a bank. In an MFI, a credit rating can also be taken into account, however, the identity of the borrower is assessed in a complex manner, so the history does not affect the decision on the application. In addition, there are a number of credit organizations that work with clients with a bad credit history and are ready to lend money even to those who are blacklisted by banks.

It should be noted that MFIs have a higher interest rate on a loan agreement than banks. However, there are microfinance organizations that offer to issue the first loan at 0%, which makes the financial product as profitable as possible.

How to get a long-term loan?

The procedure for obtaining a long-term loan is no different from a short-term one. To borrow money, you need to select the desired amount and term on the calculator, fill out a short questionnaire and wait for a decision. If it was positive, the client should sign a loan agreement and receive money on an account or card.

Applications for short-term loans are usually processed automatically using a credit scoring system. Applications for a long-term loan can be considered by the manager, so the process takes more time. Managers can also call to clarify details or request additional documents.

But even despite this, applying for a microcredit in an MFI is the fastest and most affordable way to solve problems with money.