Loans Funding your business with Micro-loans

[Mandy96]

Micro loans are very good for small business owners, this is a very great idea because it covers a lot in terms of finance especially for the new entrepreneurs. They have really helped a lot. Most of the market traders do make use of this organizations and they really boost their businesses. The interest on these loans are usually not much. I really know of some of these loan agencies who don’t charge more the ten percent as interest on it. For example, if you happen to borrow like one thousand naira, an interest of ten naira only will be added on the money borrowed from them. I can boldly recommend these loans agencies for some of the petty traders.

 

[btaliat]

This is a welcome development and it will save some people from the shackle of high interest that banks always charge thekr customers. There are some people that would have started businesses but high interest is the one weighing them down. Is this lain for all the countries or just Nigeria that you mentioned.?

 

[Mika]

Micro-loans are an interesting concept. I do not know how it goes in other countries, however, in my home country you can get micro loans without any collateral, all you need is a couple of people who will sign the loan agreement for you and state that they will be liable if you failed to pay.

 

[Abigael]

Micro loans are truly great for businesses, both for startups and expansions. But just like any other business, you need to have a good plan of how you will pay back the loan. Lack of a plan may get you into great trouble. On the other hand, you can avoid loans all together and look for other ways of funding your business.

 

[Alexandoy]

In our country the micro loans are availed of vendors and public transportation drivers. The micro financier is a usurer that charges 10% interest per month. Much more than that, the installment is daily. When you borrow 1,000 pesos then you have to pay back 1,100 in a month but on a daily basis so the interest rate is more than 10%.

 

[Mika]

In my place it is easy to get a microloan as you do not require collateral, however, microloans have higher interest rates compared to other types of loans. Normally, you pay 10 percent per year for a bank loan, but you will have to pay at least 18 percent for the microloans.

 

[kayode10]

I would never advise anyone to go for micro loan to fund their business because the interest rate is usually high. another thing is that they usually ask for quick reply back which can be very difficult if the business is not going the way you want it. Another reason is that they can embarrass you if you default and refused to pay back the loan and interest on time..

 

[MOSIUR]

Those who would like to run a small business, can undoubtedly take micro-loans. It is very popular in our country that anyone having micro-loans from the banks or other places ventures to install a small business. Its interest seems to be lower but finally or collectively or annually it is higher. After all, my countrymen like it.

 

[kayode10]

I would rather choose to raise fund from my friends and family than to go micro loan. Another way you can source fund for your business is to seek the help of the angel investors. But you must have a welcome great business plan that cut across all the growth for your business and how to make money for the investors.

 

[Julius kivuva]

In our country micro loan has pulled up many of the small businessmen rocketing them to an higher living standards. All what is needed is the group or the loanee and not less than two guaranters for loan reward

 

[kayode10]

@Julius kivuva the case is quite opposite in my own country. most of the small scale businesses don't have access to micro loans from the financial institutions. It is the big companies and the multinational ones that have access to loans at all levels. the reason is because the brokers are going to make money with big companies.

 

[Chibson]

Micro loan schemes has helped a lot of businesses. One beautiful thing about it is that you don't need a collateral in order to get it. Sometimes the government also come out with this kind of programs in order to boost small businesses. In my country the government has come up with such programs and helped a whole lot of small businesses.

 

[Jasmine]

Micro-loans are small loans targeted towards small business owners or individuals. Micro loans can be obtained without a collateral, however, you might need to be endorsed by group of people who are already the customers in the financial institutions. Micro loans are normally given by co-operates and small finance companies.

 

[Mataracy]

This type of micro loan is very good especially if the company is a small scale business.
Must of the time one those thing that scared people away is that they will tell you that their interest is small but by the time one now get there to collect loan then the story will now change.
Some times when they want to give somebody loan the collateral they will will be requested for use to be many. If all this can be taken care of ,then I will see it as the best option to take loan from them . it will be a great advance to the smakk scale business.