Are you in need of a short amount of money and are thinking of the right way to arrange it? Maybe it is your best friend’s wedding or you have to pay the bills which are due. These are some of the minor problems but they have an importance in your life. This is where micro loans come in handy. To know more, continue reading the article.
To obtain this loan in Canada, the borrower is not required to provide any collateral. However, if the borrower fails to pay back or any other problem comes up, they are responsible for returning the money.
This borrowing solution is very popular in Canada as it helps people to get rid of their short-term financial issues. Below are some of the problems that can be solved with loans.
Small Business
If you are new in Canada and you are willing to start a small business, then we would suggest that you should go for micro borrowing. After verifying your application, the borrower will give you a small amount of money. You need to tell the bank or the firm about your startup and they will show you the package that suits you the most
No Collateral
It is common that banks and other companies require something to keep as a collateral. However, this is not the case when it comes to these loans. You are not required to provide any collateral in order to get approved.
When Your Business Is Not Going Well
It can also be helpful for ones with an unfavorable business condition. However, it is important to know that the bank won’t allow you to take another loan if you have not paid your previous dues.
Bad Credit History
If you want to get approved by your bank, make sure you have a good credit score. If you have a low score, chances are that they will end up rejecting your loan application. This is something that you don’t have to face when it comes to micro funds from direct lenders.
Small Amount of Money
Sometimes, borrowing small amounts can be beneficial for you. Even though it could only be $2,000 or $3,000, it would be much more convenient for you to monitor your loan and pay it off. In addition, before borrowing, make sure you clearly understand the purpose of applying.
Emergency Cases
Micro-funds can prove to be beneficial in cases you are dealing with a financial urgency. They are considered to be one of the feasible and easy methods to obtain quick cash in Canada on easy terms.
Monthly Bills
Paying monthly utility bills and rents can burn a hole in your pocket. There comes a time when you have spent all your money on your needs and all of a sudden you remember that there are pending bills. This is where loans can help too.
Be Financially Stable
One of the greatest things about micro borrowing is that it won’t let anyone get on the streets and ask people for money. Do not forget that smaller amounts are easier to manage and pay off.
