How we assess microfinance institutions: key criteria
On our website, clients can always find complete and reliable reviews of microfinance organizations that issue quick loans on cards. We carefully analyze their conditions, because we understand that the welfare of borrowers depends on this. Therefore, we have an effective methodology for evaluating financial companies and their products.
Features of the choice of microfinance institutions
A large number of microfinance organizations operate in the modern market. First of all, we review well-known institutions. Many potential borrowers are particularly interested in their conditions.
Through the feedback form, the visitors of our site can suggest the organization for a review. It will be written and published in order of priority.
Microfinance organizations that are interested in their promotion can order a review through the PR department. There is an affiliate program for them. It implies that testing will be carried out according to general principles and a checklist, and the final assessment will be objective.
Assessment rules for microfinance institutions
We have developed a system of rules that we always follow in the process of evaluating organizations:
- Credit organizations, reviews of which will be posted on our website, must operate legally and have a state license to carry out their activities.
- All organizations are assessed according to a single list of criteria.
- Personal opinion is not taken into account when evaluating companies.
Our reviews are complete and informative. They contain all the information that a client will need to understand whether he or she wants to apply for a loan in this organization or not.
Safety and reputation in the market
A reliable and safe credit institution operates based on a license and is listed in the state register. For the borrower, this means that all his rights are reserved. In the case of an illegal situation, he or she can always seek help from the regulatory authorities.
An organization's security assessment is carried out by studying the information presented on its official website. Also, documents and other data posted in open sources are taken into account, for example, on the website of the state regulator and analytical platforms.
The highest score is given to those lenders, who provide borrowers with information about the registration of the company and its founders, physical and legal address, contact information for communication, scans of official licenses and permits to operate.
Lending terms and conditions
Our experts assess how favorable are the conditions the lender offers to its clients. A high score is given to companies that offer a low interest rate (below the market average), have developed a loyalty program for regular customers and special lending conditions for vulnerable groups of the population. We carefully study the terms of lending of microfinance organizations. Points are given only to those organizations that indeed offer favorable terms and do not use marketing gimmicks.
Loan processing procedure
The speed and ease of getting a loan in the chosen institution are important for the client. To assess the availability of the procedure, our specialists go through all the stages of processing a loan, from submitting an application to receiving funds.
The highest score is given to those organizations that provide the opportunity to apply online through the official website. The borrower does not even have to leave home to receive the money.
In addition, we take into account the lender's requirements for the clients and the requested documents. More loyal organizations get a boost to their rating.
Transparency of lending terms and conditions
Transparent lending terms and conditions mean, first of all, providing the borrower with full information about the cost of the service, the absence of hidden fees and commissions.
Checking on this criterion is carried out by studying the information on the official website, as well as customer reviews. A high score is received by organizations that:
- specify the interest rate for the use of credit funds;
- inform about the consequences of late payment;
- inform about additional commission fees;
- the credit conditions on the site coincide with those specified in the agreement.
Loan repayment terms
This criterion means how loyal the terms of loan repayment are, is there a possibility of prolonging the loan agreement and restructuring the debt, what methods of working with debtors are used.
Those organizations that inform their clients about the consequences of delay and provide an opportunity to avoid the penalties are highly assessed. Those companies that use unlawful methods of debt collection receive a low rating.
We try to be objective while evaluating the company, making sure that the information is accurate and up-to-date. However, the data provided by us may differ from those indicated on the website of the financial service provider. All financial products and services are presented without warranty.