The main risk of microcredit is precisely high-interest rates

Since microcredit is granted for a short period, it is generally assumed that the interest rate is higher than for a cash lending bank. But this is not always the case in practice.

Some organizations bet high percentages on their offers. But it’s not all IFIs, and it’s not all IFIs. Some organizations generally lend to their new customers at 0-0.2%, which is much more profitable than cash lending at the bank.

The main risk of microcredit is precisely high-interest rates. But if you look at the selection of the loan wisely and compare the offers from various microfinance institutions on our site OnCredit, you can avoid overpayment and process the loan not only quickly but profitably.

Microcredit is low-interest loans of 30,000 rupees up to 50,000 rupees, the address of which existing micro-enterprises and the unemployed, who want to realize their business – an idea. They are usually issued by banks without collateral and guarantees are provided by specialized government bodies. Microcredit is accompanied by business development services (training, mentoring, coaching, consulting, accounting, and legal support) to ensure continuous and close communication between the lender and the borrower. The amount of credit can be used for both working capital and investment costs.

OnCredit offers attractive microloans for your personal needs (holidays, travel, daily needs). OnCredit, the most reliable alternative source of financing for natural and legal persons, now offers a comprehensive and flexible individual credit scheme that offers solutions to meet your own and/or emerging needs of your family:

• Family expenses
• Leave expenses
• The cost of renovating or renovating your home
• Wedding expenses
• These personal loans can also be used to repay existing small loans or even to better plan and reduce monthly payments

In other words, you can now easily and simply obtain loans and cash through time-consuming and painstaking procedures.

Why should you issue an online loan through the Internet?

• Application for credit from any place at any time of the day
• Saving time to travel to and from the bank’s branch and waiting in queues
• There’s no risk of someone stealing your money because you won’t have to walk around with a lot of cash

To collect the money for any purpose, and it has been credited to a bank account, it is necessary only to fill in the online loan application in OnCredit.

After a microfinance company checks your online loan application(up to 15 minutes) and you pass the approval, you will be able to borrow money online for any needs: money before salary, credit for repairs, credit for the purchase of equipment, credit for education, consumer credit for any personal needs.

There are almost no restrictions on borrowing money. To obtain a credit card, the borrower must be a Sri Lankan citizen, have a national identification card, , and an active bank account. They may be students, pensioners, unemployed persons, persons without formal employment or income certificate, without guarantors, or with a relatively poor credit history.

IFIs loan terms: loans (credits) are usually granted for up to 30 days, interest is charged daily and the amount of the first loan is up to 3.5 (sometimes 5) thousand rupees.

In simple and flexible ways, OnCredit offers attractive microloans, which you can use for holidays, wedding expenses, for your home and emerging needs, as well as for other daily contingencies.

Credit

Term Loan

Move to a simpler way to get credit. Get an estimate online or use our banking app to apply for a loan of up to R250 000. You’ll get a personalised offer based on your affordability, and you can choose between the amount you want, the lowest monthly instalment or the lowest interest rate, starting at 12.9%.

Benefits

Whether you need to do home improvements, pay for your children’s education to secure their future or buy a reliable car to get your family there safely – living better starts when you get credit for the right reasons.

A personalised loan means that you get the best offer based on your profile and your need, with lower fees and at the best possible interest rate. Remember that the term will affect your instalments, so be sure that you’ll be able to repay the monthly instalments over the whole term.

• Get up to R250 000 over 1 – 84 months
• Choose between the amount you want, the monthly installment that suits your pocket, or helpful hints the option that gives you the lowest interest rate
• Credit is approved in minutes and the money is available immediately
• Pay fixed monthly repayments
• Get interest rates from 12.9%
• Consolidate all your existing loans for easier monthly repayments
• Add affordable credit insurance, including retrenchment and death cover
• Manage your credit using our app

Ways to apply

• Online
• On our app
• Visit your nearest branch
• Call us on 0860 66 77 89

Your offer is based on your affordability and credit profile

• Your banking and credit history
• Your income and expenses to see how much you can afford
• How stable your source of income is, to make the best offer
• You choose the credit amount that you want
• You choose the monthly installment that suits your cash flow or the option that gives you the best interest rate

Credit insurance

Credit insurance is required for credit terms of 7 months or longer to cover death, permanent or temporary disability, unemployment, the inability to earn an income or retrenchment.

Your credit life insurance premium is charged monthly at a Rand amount per every R1 000 of the outstanding balance. This means that the less you owe, the lower your monthly credit insurance premium becomes.

Get an online credit estimate to see how much credit you qualify for or get more information about our credit insurance and claims process.

Documents you need when applying

• identification document (must be 18 years or older). If your name and/or surname differs from your identification document, a marriage certificate, divorce court order or name change letter will be required.
• Latest salary slip
• Any bank statement showing your latest 3 consecutive salary deposits into an account in your name (an over-the-counter bank statement must be stamped)

Credit for business owners

To apply for a business loan, your business must be registered as one of the following:

• Association not for gain
• Close Corporation (CC)
• Incorporated (Inc)
• Public (Ltd) or Private company (Pty Ltd)
• Trust
• Read more about our credit solution for businesses here

Note: We cannot grant credit to informally self-employed individuals, including freelancers and sole traders.

Download our free Good for Credit booklet for tips on how to handle credit.