Before applying for a loan regardless of the type of loan it is a question of, it is important to have a good check on the terms and conditions that apply. So here’s a quick look at some of the basic conditions that apply to you who are looking for a micro credit. What we write here should be seen as a basis for the knowledge needed as rules can vary from lender to lender. Writing down everything is not reasonable here either, so be sure to review the terms of the particular lender you choose before submitting a loan application.
What is required of you?
There are two parts to the terms of the micro credit and that is what is required of you and what applies to the loan itself. When it comes to yourself, it is self-evident that a lender must set certain conditions in order for them to feel secure in repaying the borrowed money.
The most common condition here is that you as a borrower should have some kind of income. When it comes to micro-loans, the income often does not have to be particularly large. However, this can vary slightly as, for example, it requires a better income to be able to repay USD 10,000 in 2 months than is needed to repay USD 1,000 in 30 days. Therefore, if you have a relatively low income check out the rules that the lender sets first.
Another common requirement is age. As always, in order to be able to borrow some money you need to borrow at least 18 years old. But quite a few lenders do not actually settle for this but require a borrower to be older. A rough estimate is that about half of the lenders require customers to be 20-24 years old. How old you have to be to borrow from a particular lender is usually clearly written on their web pages. We also include this in our comparisons.
Something that there can actually be rules about is how old you can be if you want to borrow money. This requirement is not as common for micro credits as for example private loans and mortgages that have a longer maturity. If you are around 70, this should be investigated.
If, for whatever reason, you have received a payment note, there is a high risk that this will affect your ability to borrow money. When it comes to micro-loans, most lenders say no to applications from people with complaints. However, there are some lenders who may want to lend money even if there are complaints. The requirement is generally that the debts of the Kronofogden must be paid. Furthermore, the economy must of course be in good order. A rough estimate here, too, says that around a third of all lenders dealing with micro credits approve payment remarks.
There are usually some minor conditions that are required and this is, for example, that you should have a mobile subscription registered on you that can be used when borrowing money. You should also be registered in this country.
As I said, this is a basis for the terms that are placed on you for you to borrow money from a particular lender. In the next article you can read more about what applies to the loan itself.