Retail lending to Ukrainian banks is at a very low-level today. And all because many customers are constantly faced with rejections. The difficult financial situation in the country requires tightening of the rules of verification, banks cannot trust the borrowers, so they check them as carefully as possible.
This situation has led to the increased popularity of alternative sources of financing, such as microfinance companies. There is still an opportunity to take out a loan from a private person for a receipt. This method of credit is very advantageous, as you do not need to collect a large number of documents and wait a long time for a decision. Loans from individuals are issued quickly and without complications.
Private Loan: Benefits
As with microfinance organizations, borrowing from a private individual is worth it only after learning all the terms of the cooperation, making sure that there are no hidden fees and commissions in the contract. It is also very important to check the reputation of the person who gives you the money, to find reviews about it. If all goes well, you will be able to appreciate the benefits of private loans:
- rapid decision making;
- minimum package of documents (usually enough passport and IDN);
- no impact on credit history – banks do not know that you have taken out loans from individuals for a receipt ;
- variability of conditions of cooperation – to negotiate with an individual is much easier than with an official financial institution.
When receiving a loan from individuals, it is very important to make a debt payment on time. Usually, the money is issued and returned in cash, other personal terms can discuss other terms of repayment of the loan.
Advantages of MFIs
If you do not want to understand how to apply for a loan from a private person, and take the risk of borrowing money from someone else, but not from an officially registered company, it makes sense to apply to the MFI. Microfinance organizations also offer loyal conditions of cooperation, willing to give out money only with a passport and IDN. Only in this situation will you still have the inner confidence that everything is happening legally and safely!