The refinancing of micro loans is something that can occur with some frequency in financing. I say that it can occur frequently for the simple reason that it is what finally happens in many cases.
Why is it necessary to refinance the micro loans so many times?
It’s because of the type of loan that customers are signing here.
Do not make mistakes or misunderstand me, in refinanciacion-deudas.es we are the first to defend the use of microloans responsibly.
The problem is that of those people who only process this financing because it is easy to obtain it, and not having the return of the operation clear.
You have to be clear about several things, the main one is the fact that micro loans are one of the quick loans with the highest rate of defaults.
It is due first to the short term to make the return and above all due to the ease with which they are obtained.
Being fast money credits are many people who process them even if they have no intention of returning because they do not want / can.
The advantage of minicréditos therefore also becomes its defect in case the operation ends badly.
If the operation goes well all are advantages, not on the contrary when it ends unpaid.
For this reason, it is usual to see how customers want to refinance loans through the entity.
Refinancing micro loans, how is it done?
It is not really complicated because the online financial companies that offer them knowing in advance the probability of this happening enable this option by default.
These financiers call it “extension of term” and it basically consists of extending the term of the credits so that those who see will not be able to return it within the period indicated have a second chance.
The problem with this “refinancing of loans” is that the term given to the clients is not much higher either.
The usual thing is to give a maximum of 15 days so that the client can update their credit by canceling it when the time comes.
That’s why talking about a refinance of microcredits is not 100% real either, since here we only get a small term increase.
In any case, it is as close as we can get to refinancing since, as a general rule, it is not easy to refinance debts with online financial companies.
It is not among many reasons because companies know that being small debts even if they end unpaid in the end will be charged.
It is one thing to have unpaid debts for high amounts and another to have it for small amounts.
And we all know or should know that the amounts in micro loans do not usually exceed € 1000 in the form of credit.
Something that we will discover as we learn about how the financial sector works since the higher the amounts the easier it is to refinance.
The loans of small amount are the most complicated, on the other hand those of medium and high are much simpler.