What is dangerous to take loans in MFIs?

Almost every person came across such a situation when there is no money, and they are required immediately. Our life is unpredictable anything can occur, and when we have problems with unforeseen expenses — microloans are always ready to help.

Microfinance organizations

MFIs provide two types of lending:

Consider the second form in more detail:

Fast money, or how they were used to calling «to salaries» as a rule, are issued for a short time if money is urgently needed, and the percentage of them is the highest. For money, only a passport will be required, in some cases another document confirming the personality, for example, a driver’s license.

These organizations advertise their services promise money almost immediately, upon presentation of one document. Loans are issued to all, unemployed, retirees, customers with a bad credit history and with all this taking into account big risks. Due to the low customer reliability, most loans are not returned. That is why the organization establishes high interest, which can reach 2% per day, and this is 600-800% per year.

If you encountered a hopeless situation worth weighing everything «for» and «against», and then make a decision. But in no case should not go to a similar organization, it can lead to a closed circle, and you will fall into debt.

What dangers is MFI?

Slight advice:

Do you take microloans and are there those who did not give a loan on time? What were the consequences?