Is it possible to get a long-term loan from an MFO?

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 apply for an extension. To make life easier for clients, many microfinance organizations have increased the loan term to 2 or even 12 months.

What is special about a long-term loan from an MFO?

A long-term loan has a number of features, and this is not only an increased loan term. Such loans are issued at a reduced interest rate (compared to short-term loans), which is accrued monthly. In addition, the repayment method is different: the borrower can repay a short-term loan in any convenient installments during the term of the agreement, while a long-term loan must be repaid in equal monthly installments.

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

Why do residents of Kazakhstan often turn to microfinance organizations to obtain a loan?

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

1. Convenience of obtaining a loan . To receive money, you don’t need to collect a bunch of documents, go to the office and wait in line. All you have to do is fill out an application on the website and receive funds on your card.
2. Availability . The bank puts forward many requirements for clients; to receive a loan, you usually need to confirm that you have official employment and have a positive credit rating. Even a student or a pensioner can take out a long-term loan from an MFO without proof of employment.
3. 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 24 hours a day, 7 days a week. Most of them only review applications at night and issue a decision, but some may transfer funds late in the evening or on a weekend.
4. Delivery speed . A long-term loan is issued very quickly; you can fill out an application and receive money in just 30 minutes. Some companies are able to issue a loan in 5-7 minutes.
5. Credit history . When contacting a bank, the user’s credit history will be taken into account. In this regard, it is difficult for clients with a bad history to get a cash loan from a bank. In MFOs, the credit rating can also be taken into account, but the borrower’s personality is assessed comprehensively, so the history does not affect the decision on the application. In addition, there are a number of credit institutions that work with clients with a bad credit history and are ready to issue money even to those who are blacklisted by banks.

It should be noted that MFOs have a higher interest rate on a loan agreement than a bank. 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 applying for 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 form and wait for the decision. If it was positive, the client should sign a loan agreement and receive money to his account or card.

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

But even despite this, applying for a microloan from an MFO is the fastest and most affordable way to solve money problems.