The main disadvantage of microloans is that they come with a very high interest rate and therefore such loans can be difficult to repay. About this “Moscow 24” said banking market expert Andrey Barkhota.
“If a person takes microloans and does not close them for a long time, then the total funds to be repaid are already so large that it is impossible to give them to the not very rich layer of citizens. And they are taking out new microloans to pay off old ones. “The amount of debt is increasing like a snowball,” warned the expert.
According to him, the best thing for those who want to take out a small amount of credit is to try to get a credit card with a small limit from a bank. Barhota stated that in this case, a grace period may be given during which you will not have to pay interest. The expert concluded that if the bank refuses to issue a card, you can take a microloan and return the money in a short time.
The press service of the online alternative lending service Moneyman previously told socialbites.ca saidHe says Russians mostly apply for microloans “before payday” for a period of 22-29 days. They constitute 34.1% of relevant applications from citizens.
Previous experts guess To increase microcredit volume in 2024.