It is obvious that it is better to spend money on a trip that has been set aside in advance for this purpose. But there are situations in which it makes sense to consider getting a micro-loan…
Travel on credit?Many consider borrowing money from microfinance organizations (MFOs) for entertainment to be nonsense and unjustified waste. And, indeed, vacation is usually planned for the whole year, and resources are reserved in advance to pay for it. In addition, there are banks whose loan rates are noticeably lower than in MFIs. Nevertheless, there are circumstances when an online microloan to a card turns out to be the best way to cover the financial needs associated with a vacation. Let’s consider three situations when a short-term loan is able to help out a tourist.
There is not enough to make a dream come true
There can be a lot of reasons for such a collision. For example, a person hoped for a bonus, but it was not given out, the desired tour suddenly rose in price, or they had to go to absolutely necessary expenses on the eve of a vacation. And so, the ticket is waiting for the traveler at the travel agency, but the accumulated funds are not enough, and an insignificant amount. In such circumstances, you can consider the option of a microloan, of course, subject to reasonable precautions.
There is a very profitable burning offer from a travel agency
The opposite situation is when a vacation was planned differently, but a once–in-a-lifetime option appeared. For example, a travel agency has put up for sale a ticket to an exotic dream country with a huge discount, or friends have refused to travel and offer to use a non-refundable reservation for free. Usually last-minute tours sell out pretty quickly, so you need to look for money quickly. In this case, a microloan can also become an adequate solution.
The vacation is in full swing, but there is not enough money for impressions
To relax in Egypt, but not to go on an excursion to the pyramids or, having paid for a flight to Australia, not to go diving to the Barrier Reef is a bit illogical. Therefore, it is doubly insulting when, after spending on a basic tour, there is not enough money to visit the places for which the country of visit is famous. In order not to regret missed opportunities for the rest of your life, sometimes it makes sense to borrow some money. The loan interest in MFIs is high, but money is given out quickly and simply, even if you request it from abroad.
When borrowing funds from MFOs, we must not forget about caution
An important rule of obtaining microloans is not to rush at the first offer that comes along, especially if it is voiced in an intrusive advertisement. It is better to spend some time and study the market offers. This will save on interest payments, and most importantly, avoid the pitfalls of microcredit. A meaningful choice of MFIs comes down to four steps.
Make sure that the microfinance organization has a state registration. This can be done on the website of the Bank of Russia, where there is a section for checking MFIs and banks. If the name of the creditor company is not located here, there is a high risk that we are talking about a fraudulent structure.
Make sure that the lender is a member of a self-regulatory organization (SRO). There are two SROs operating in the Russian financial market that unite MFOs: MiR and Microfinance Alliance. If the investigated MFI is not on their lists, it is possible that she was expelled from there for violation.
Look at the labeling of the MFI website in search engines. Russian search engines (Yandex, Mail and others) they put white checkmarks in blue circles in their outputs opposite the verified MFIs. If there is no such sign, there is a reason to think about the reliability of a credit institution.
Carefully study the conditions for issuing a microloan. Most likely, this is the most important condition for obtaining a micro-loan. Special attention should be paid to the amount of overpayment, the procedure for repayment of the loan, as well as the amount of fines and penalties in case of non-payment on time.
Finally, at the stage of signing the contract, you should make sure that the MFO does not impose additional services. According to statistics, the proceeds from them account for 17% of the income of microcredit organizations. As a rule, this is nothing more than an extra cost for the client, without any benefit.