Quite a few lenders offer new customers to borrow for free and borrowing money from them is thus obviously cheap. However, it is only possible to borrow this way once, so it is like nothing to count on in a somewhat longer perspective. The question then is how expensive it is to actually borrow money in the form of a micro loan.
What one can see fairly quickly is that it varies a lot in terms of cost charged by the different lenders. Looking at our list here is the cheapest loan of USD 3,000 at the moment USD 198 and the most expensive is at USD 750. This is for 30 day loans. Extremely large difference is to be said.
This shows how important
It is to really compare the different lenders before submitting an application for a loan. Because there is no reason to pay extra when it is the same product. Since there are still a large number of lenders dealing with micro loans, we do not currently have the opportunity to compare all of them, so there is a risk that we have missed some lenders.
I did a small check and then found for example Good Finance. There you can borrow a Good Finance 3000 USD loan which we do not for example include in our comparison.
Also, keep in mind that rates change so that a lender who was the cheapest when you last wanted to borrow money doesn’t have to be this at all if you now want to borrow money again. Therefore, always check the different options if you are going to borrow.
Does it really have to be expensive?
If you look at the cheapest alternative, which is at USD 198, I can not think that it is so dangerously expensive to borrow USD 3,000. If a borrower needs to pay USD 750 instead, it is very expensive all of a sudden.
Then of course it is better to use saved money so that the fee does not have to be paid no matter how big it is. But the short answer is that it doesn’t have to be so expensive to take a micro loan. However, it may be that if a more expensive lender is selected.