Breaking Financial Barriers: Micro Credit in Sri Lanka
Microloans have been taking the world by storm, offering access to small amounts of money to help business owners and entrepreneurs who do not have the financial resources to acquire larger loans from traditional banks.
It’s no wonder microcredit is being heralded as a financial gateway for those seeking to break out of poverty and build their enterprises. In this article, we’ll discuss what exactly microcredit is, how it works, and who stands to benefit from it.
What is Micro Credit?
Microcredit is a type of microfinance that provides individuals with a small loan amount that may otherwise be unattainable due to their lack of collateral, regular income, or credit history.
This form of microfinance helps to support those who wish to take a chance on an enterprise and have the potential for success but are unable to secure larger loans necessary for their business.
Through microcredit services, aspiring entrepreneurs can obtain the capital required to help get their business off the ground and turn a concept into reality.
Additionally, microcredit can help individuals access capital for personal use which may be necessary to cover urgent healthcare costs, pay tuition fees or other emergency needs.
It is through this small loan amount that individuals can make larger purchases than their current income would usually permit and provide a pathway out of poverty.
CashX paves the way in providing microcredit within Sri Lank offering clients our convenient loan terms, low-fees rates, and fast approval times!
How does it work?
Microcredit is designed to provide small amounts of money to those who cannot receive larger loans from traditional banks. This type of loan typically ranges from small amounts up to a few thousand in some cases and can be provided by government organizations, non-profits, or private lenders.
CashX can loan amounts up to RS 80 000 to individuals in Sri Lanka, with repayment terms flexible enough to fit any needs and budget. We provide a leeway of up to 30 days of period for each loan to be about to fulfill the repayment.
We encourage your customers to follow the repayment schedules and stick to their loan agreements. As long as customers make their payments on time, CashX is committed to providing a smooth experience for both parties.
Cons of Microcredit
Of course, like all else, some forms of loans can be detrimental instead of helpful. Microcredit though is a tool to help those who are disadvantaged and in need of access to credit, but there can be drawbacks to its use.
Short repayment terms
Microcredit only allows for short repayment terms which can be difficult to manage. This can put a strain on those already in financial difficulty, and may create further problems if the loan is not repaid on time. The terms are structured that way because the lenders are typically taking an increased risk and thus charge a higher rate of fees for short-term loans.
High Rate of Fees
Another drawback to microcredit is that it usually carries a high rate of fees which can further add to financial difficulty if not repaid on time or in full. It is important to research the terms and conditions of microcredit loans before taking one out, as the repayment period and fees rate may vary between different lenders.
Some microcredit providers may have certain restrictions such as age or credit score limits. Lenders may also require some purpose for the loan, such as an enterprise or purchase, to be eligible for a microcredit loan.
Where can I get microcredit?
With the increased availability of microcredit services, there is now a wide range of lenders providing microcredit loans. For starters, bank institutions may provide microcredit loans as part of their SME lending programs.
Additionally, there are a number of non-profit organizations that offer microcredit services to those in need. As we said earlier, the government may also give subsidies to those who can not access traditional credit facilities due to poverty or other factors.
Moreover, savings cooperatives and other community-based organizations often provide microcredit services.
For those looking for an alternative, fast, and easy microcredit solution, CashX provides a seamless lending online experience. Our services feature quick approval, profitable rates, and flexible repayment terms.
To take a loan online and start your journey with us, simply:
- Create your private space on the website.
- Sign the contract with CashX.
For more detailed information, go to the “How to apply for a loan” page.
How to apply for Micro Credit
Applying for a microcredit loan from CashX doesn’t have to be a complicated and daunting process–just fill out an easy application form with your contact details and financial/bank account! It’s fast and can usually be done in just a few minutes of your time, with only your ID and phone number needed to complete the form.
Likewise, you may also need to present a picture of your identification such as the National Identity Card, Passport, or Driving License to verify your identity.
Once the application is submitted, we will assess your financial situation and determine whether you are eligible for a microcredit loan. If you are eligible, we will provide you with an offer that includes the repayment period and rate of fees.
Cash Loan Made Easy
CashX makes it easier for individuals to access microcredit loans from the comfort of their own homes. We understand how hard it can be to acquire traditional bank loans and offer an alternative solution that is tailored to meet your individual needs.
Our application process is fast and convenient! All you need to do is create your private space on the website and sign the contract with Cash X! You will receive the confirmation code via a message via telephone. The loan will be transferred in real-time in the simplest way for you.
We are here to help you and make it easier for individuals to access loan solutions! Contact us today to learn more about our services and how we can help you.