Shop around and make comparisons
Don’t just accept the first offer you get. Read and understand the fine print. To get the best micro loans, you need to take the time to search for the best loan solutions for your needs. Just because a loan is offered at a low interest rate, it doesn’t mean that it’s the best loan option for your needs. You can search online using comparison tools or you can use a broker. Make sure that you apply for a loan that will suit your pocket. Compare interest rates, loan amounts, pay out efficiency and customer service.
Keep your financial situation in mind
Make sure that you can afford the loan repayments before you apply for a particular micro loan. You need to have a clear budget set, so that you know how much you can afford to repay.
Don’t apply for too many loans
Keep your personal loan applications to a minimum. By applying for too many micro loans at the same time, this will have a negative effect on your credit record. Check your credit rating before you apply, so that you have a clear idea of your chances of qualification.
Use registered companies only
Make sure that the company you choose is a registered credit provider. According to South African law, financial institutions that offer finance are required to be registered with the National Credit Regulator (NCR). This will ensure that you are only dealing with legitimate companies instead of unscrupulous lenders. Because the micro lending sector has grown at a rapid rate globally, borrowers have to be even more cautious when applying for micro loans.
Be honest when you apply
Resist the temptation to falsify information. Just be honest about your financial situation. This will ensure that you get the best possible loan solution for your needs.