In order to qualify, you'll need collateral – something that is worth 1.5 times your loan. It can either be your house/property or another valuable object. Alternately, you can provide a co-signer who is willing to help you pay your loan if you are having difficulties. Before taking out the loan, be sure you're willing and able to pay for the fixed amounts due every month. MiCredito will try to accommodate the timeline you need to pay back the loan.
When a potential client is interested in applying for a loan with MiCredito, they fill out a loan application on the spot. The application requires their identification number, address, name and amount requested. The credit officer then brings the application back to the office, where the manager runs a credit check. Once the credit check is complete the process will continue and the credit officer returns to the potential client for an analysis. This process currently takes three days to finish, up to five days if there are client delays.
When an institution gives out a loan, there is a risk they will not be paid back. Because of this risk, a small percentage of the original amount is charged to the client in the form of an interest rate. Also, the institution must account for the fact that the loan represents money that cannot be used in another investment. The cost of missing this opportunity is covered in the interest. Lastly, some of the interest is used to cover administrative costs.
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