Microfinance organizations usually give out loans for a period of 1 day to 1 month. During this time, the borrower must fully repay the loan money, as well as pay interest for using the services of the lender.
Loan repayment methods
Microfinance organizations provide all the opportunities for the client to repay the loan in a timely manner. You can usually return a loan online in several ways:
- through the company website;
- through a bank cash desk or ATM;
- through an electronic wallet.
The client can make an early repayment of the loan. This is advantageous because you can significantly reduce the amount of overpayment. The fact is that interest on online loans is accrued only for actual days of using money.
Another way to save money is to pay back partially. Payment in installments reduces the total amount of debt. This means that each new payment percentage is calculated on a reduced amount.
If it is not possible to repay the loan in a timely manner, then you can extend it. This operation is performed in your account. The client accrues additional interest on the amount that is in his or her use. But the rating and credit history do not suffer in any way.
If you have a loan, then you should be as responsive as possible in fulfilling your financial obligations. Otherwise, it threatens with extremely negative consequences.
At the beginning of the delay a penalty is charged. If you do not repay the debt in a timely manner, the amount will increase several times. Therefore, you should make the payment as early as possible.
If the client systematically ignores the payment of the loan, then the lender can attract collectors. No one will like communicating with them, because loan repayment specialists are not very kind and condescending.
The most difficult situations are decided in court. The lender sues an unscrupulous borrower. And most often, the court decides in the lender’s favor. Therefore, the defendant will be forced to pay the debt, accrued late interest, moral damages, as well as legal costs. The amount obtained is much larger than the one that was issued initially.
Thus, an online loan imposes certain obligations on the client. If you are not sure that you will be able to repay the loan on time, it is better to seek help from relatives or find other options for financial assistance. If you still get a loan, then spend only that part of the amount that you need. The rest can be returned, this way you can reduce the overpayment.
How to resolve a dispute if you can’t pay the loan?
When getting online loans, many borrowers do not even think about what will happen if they do not repay a loan. After all, everyone hopes for a positive outcome of any situation. But unforeseen situations can happen that ruin all plans and add a problem.
Despite this, many lenders are ready to meet their clients’ needs and help in solving this situation. There are even special departments dealing with problem loans, and employees can offer you several options.
- Extension of the loan agreement. Such a service is available in many microfinance organizations. It provides for the extension of the contract when paying a certain amount of interest. That is, the borrower pays a small amount agreed with the lender and continues to use credit funds under the same conditions. Sometimes you can prolong the contract several times in a row;
- New loan. You do not know what will happen if you do not return the loan? Some lenders may offer you to get a new loan from them, which will be used to pay off debt under an existing agreement. Most often, you may be advised to contact other lenders or banks and apply for a loan in order to fully pay off your online loan debt;
- Another way to pay off loans is to go through a re-credit at a banking organization or other financial institution. With this method, the terms of the new agreement can be quite loyal;
- In the event that you do not pay loans and do not attempt to resolve the issue peacefully, the borrower has to wait for the court and ask there to reduce the size of the forfeit and penalties. In this case, you will need to prove your insolvency at the time of the loan agreement – illness, childbirth, dismissal from work, or other reason. Of course, a complete release from duties cannot be avoided, but you can try to reduce the size of the penalty.