Publication date: 06.06.2024
lawyer, 23 years of experience in enforcement.
Microloans have become popular in Ukraine, the process of issuing them is faster, they do not require documentation and approval, like bank loans. However, without understanding the basic conditions of this type of lending, you can get into a debt pit.
What is a microcredit: advantages and disadvantages?
A microloan is a credit for a limited period, usually from 5 to 20 thousand hryvnias, which is issued by financial institutions for a short period of time.
To apply for a microloan, you will only need a passport, a taxpayer account and a credit card.
he main advantages of a microcredit are:
- - a minimum of complexity, because you do not need to buy certificates that would confirm the debt.
- - the speed of issuing this loan (approximately 15 minutes);
- - money transfer to the card of the selected financial institution;
- - the variety of large institutions engaged in microloans and the variety of different tariff schemes under which lending is carried out.
But do not forget that microloans have a significant risk, namely high interest rates. That is, if someone does not pay the debt on time, then a hole can form in the debt. In this case, the total amount of returned debt will be greater than the initial microloans. In some cases, individuals are required to take out additional microcredits or loans from banks.
What should you pay attention to when applying for a microcredit?
Before taking a microloan, it is important to pay attention to the following aspects:
- - The organization that provides microcredits must be officially recognized and have a license to carry out the relevant activity (you can specify this information on the NBU website). If the relevant information about the selected financial institution is unknown, it is better to avoid signing a credit agreement with it.
- - terms of the contract and terms of payment. It is important to fully familiarize yourself with the credit agreement, which, among other things, may contain hidden terms that provide for the payment of interest in case of non-payment of the agreement, etc. Special attention should be paid to the lowercase letters of the place;
- - Interest rate and late penalties (even a few days late can have a significant impact).
What are the main requirements for a microcredit?
In accordance with the Law of Ukraine "On Amendments to Certain Laws of Ukraine Regarding Consumer Lending", adopted on September 15, 2020 No. 891-IX, the main requirements for microloans are listed.
Initially, these are credit agreements that are calculated for a term of up to one month, in addition, agreements whose duration exceeds one month are also considered, they are limited to the amount of one minimum wage and are regulated by the provisions of the Law of Ukraine "On Consumer Lending". In this regard, the maximum aggregate fine (fine, penalty) for violation of the consumer's obligations by him (or his representative) may not exceed the amount received by the consumer under such a contract, and may not be increased by agreement between the parties.
In addition, if the consumer violates the terms of the credit agreement with the consumer, the total amount of the loan does not exceed the minimum wage, the interest rate on the loan, the method of its calculation and the order of payment cannot be changed in favor of the consumer.
Third, when applying for a microloan, the client is given access to information about his credit history, as well as to collect, store, use and distribute information about him and the loan. This information is then available through his credit history. If the consumer cannot provide this consent, the lender must refuse the microloan request.
And at last. The legislation obliges financial institutions to publicly disclose the main characteristics of credit products (including microloans) on their websites.
The legal service "Consultant" will select a lawyer or an attorney who will conduct a legal analysis of the situation, form an appropriate procedural document (application, statement of claim, petition, etc.), and also help in collecting the evidence base for the most effective resolution of the issue. Service specialists will accompany the process from the beginning to the execution of the court decision. They will also provide advice and help in solving such issues as: preparation of amicable settlement with the creditor, Arrest for inviolability, removal of seizure from real estate, bankruptcy of an individual, debt reduction, etc.
