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What is Microfinance organization?

Loan is the amount of money which is expected to be paid with interest. There are different kinds of loans according to the specification of the loan. Two major categories of loans are personal loan and corporate loan. Corporate loans, as the word itself says, are for corporations. At the same time, the personal loans are to be given to individual person. There are a lot of kinds of personal loans. One of them is micro loan, and the institution that provides such microloans is called the microfinance organization.

The advantages of personal loans from Microfinance organizations

There are quite a lot of microfinance organizations in India. The offered product is mainly the same: it is a quick personal loan; but almost each organization has different personal loan interest rates and time period the money is given, so as postponing fees and other insignificant details. However, all of them have one important thing in common when personal loans are provided without any proof of income. It appears to be a huge advantage against the personal bank loans. If banks have minimum and maximum age limits, employment types and statuses, minimum income and credit scores, the microfinance organizations are almost free of all of them. Home loans are mostly associated with easy personal loans because of their simplicity. If an individual wants to get a personal loan as fast as possible, the microfinance organization is the best option. There are a lot of cases when people have every component satisfied to get the personal bank loan, but instead they still choose a loan from the microfinance organization. The main reason of that is more than clear – fast personal loans.

Personal loans for self employed people

India is known for its huge population, by the diversity of its individuals. Therefore, according to demand of short term loans, there is almost every type of a personal loan available in India. Microfinance organizations offer personal loans for self-employed people across the country. This can be seen as one of the biggest advantages in opposition to the personal bank loans. Banks are mainly skeptical of self-employed people and it takes a huge effort to get the loan, whereas microfinance organizations are open to self-employed individuals. In many cases microfinance organizations not only give personal loans but also help their customers to expand their businesses. This help can be seen as the guarantee for microfinance organization that their debtor will be able to return the amount of loan by the end of the period agreed.  Thus, debtor is satisfied with the quickness of getting the personal loan and help from the microfinance organization; and he is happy to pay the interest which makes the microfinance organization satisfied by itself. This chain is also known as Symbiosis between creditor and debtor, where both sides are satisfied.

Creating more possibilities

As there was mentioned above, microfinance organizations offer personal loans online with no proof of income. To say this in other words, microfinance organizations help individuals to change their status from non-employed to self-employed. In India there are a lot of people who have good business ideas, some of them even have innovative ideas, but they cannot afford to make their dreams come true. Of course, there is almost no chance that banks will ever give short term loans to non-employed people with no stable income. This is when microfinance organizations are the only possible option. Therefore, these kinds of organizations make their profit not only from lending money, but also they create more possibilities for individuals to fulfill their dreams. The more amount of self-employed people is there the more developed is the country. That is what microfinance organizations do.