Formally, microfinance organizations appeared long ago. But only a few years ago, their activities were officially regulated. Due to this, weak and unreliable MFIs left the lending market and only those that can be trusted remained. Despite all this, there are still many people in our country who believe in the myths associated with these organizations.
Myths and Reality
It is so established in the world that it is too difficult to get rid of bad reputation. This is especially true of the lending environment, where this reputation lasts a very long time. The myths about microfinance organizations, as well as about collection agencies, arose because of their “dark” past. But if earlier people really suffered a lot because they contacted them, now the situation has changed a lot. Unfortunately, people still confuse modern organizations that work according to the law with illegal immigrants who existed a couple of decades ago.
Below we list the 4 most stupid and inappropriate myths about MFIs
Threats and pressure
The first myth is that if a person owes an MFI, he will be constantly threatened and put psychological and even physical pressure on him.
This really happened before when microfinance organizations transferred debts to collection agencies. Now MFIs and collection organizations operate fully according to the law, in case of violation of which the borrower has the full right to sue them
Loans – for the poor
Myth number two: only poor people take a microloan, others will not.
This myth is incorrect because almost every citizen may have a need for a small amount of money “before paycheck”. In addition, with the help of several microloans, you can significantly improve your credit history and get the desired loan in the bank.
Loans to all
The third myth says: absolutely every person can get a loan from an MFI
Despite the fact that microloans are issued in 15-30 minutes and, as a rule, on one passport, microfinance organizations still carry out an inspection of a potential borrower. It may not be as thorough as in banks, but people with a bad credit history will definitely not get a microloan.
Loan can not return
The fourth myth: the money issued by the MFI, you can not give
Just as in a bank, here you can use the limitation period for a loan, that is, “hide” somewhere for 3 years and not get in touch with a credit institution. In this case, the debt will be fully written off. True, for the borrower there will be very deplorable consequences in the form of a damaged credit history, due to which he will not be able to take a single loan for 15 years (the period of updating the credit history).