Bank News

A microcredit is a small loan of money that is issued by microfinance organizations (MFIs) for a short period of time. Such loans are designed to quickly solve financial difficulties and are available to almost everyone.

Key Features of Microcredits: 

• Amount and term. Microcredits are usually issued for amounts ranging from a few hundred to several tens of thousands of KGS for a period of 1 to 30 days.
• Simple application process. All you need is a passport to obtain a microcredit. No certificates of income or guarantors are required.
• Fast disbursement. Funds are credited within minutes after the application is approved.

When Is a Microcredit Useful? 

A microcredit is suitable in situations when you urgently need money, such as:

• to pay for medical services or medications;
• to cover utility bills;
• to repair household appliances or handle other unexpected expenses

Benefits of Microcredits 

• Availability. Loans are granted even with a bad credit history.
• Minimum of documents. You do not need to provide additional information.
• Online application. Most MFIs do operate online, allowing you to apply from anywhere in the country.

Risks of Microcredits 

• High interest rates. The daily rate can reach 1-2%, which becomes a significant overpayment per month.
• Short return periods. If the money is not returned on time, the debt will increase due to penalties.
• Fraud. You should only choose verified organizations that are registered in the National Bank's registry.

How to Avoid Problems with Microcredits? 

1. Assess your ability to repay: take out a loan only if you are sure of timely repayment.
2. Carefully read the contract, especially the clauses on the interest rate and penalties for delay.
3. Use microcredits only for emergency needs, without turning them into a regular financing tool.

Alternative to Microcredits 

If you need a larger amount or a longer repayment period, you can consider an online loan from the Bank Kompanion. Such a loan is issued almost as quickly, but has more favorable conditions:

• the maximum amount is up to 200,000 KGS;
• flexible repayment periods — up to 36 months;
• low interest rate.

Microcredits are a convenient tool for solving short–term financial problems. The main thing is to use them wisely to avoid unnecessary debts. 

Microcredits can be useful in emergency situations when other sources of funds are unavailable. However, using them requires responsibility and a thoughtful approach. The decision on a microcredit should be well-considered in order to avoid financial difficulties.