In USA, the activities of microfinance organizations can be divided into 3 types, each of which works with its audience:
- 1. Microcredits for small businesses. The main clients are individual entrepreneurs with small or medium income. Financial organizations usually make a rate of 20 to 40% per annum, according to loan agreements. Such types of loans, as a rule, are issued by organizations with large capital.
- 2. Consumer lending. This is dominated by organizations with an average level of capital, but the amounts they issue are superimposed from 100 to 140% per annum.
- 3. Finally, the most common type is loans to paychecks. The name is self-explanatory. On average, the timeframe prescribed in contracts of this type varies from 3 to 30 days, more rarely to 60. At the same time, the rate for these loans is from 450 to 1,000% per annum, and this is the best option, since it can be much bigger. Banking% consists of short terms and small amounts (from 1,000 to 15,000 rubles).
These organizations, according to many experts' assessments, do not fulfill their original goal, affordable loans for the poor, for which they were intended. They receive their profit not on the basis of quality, but on the number of issued loans, so it is better to take a decision on taking such a loan after a very careful weighing of all pros and cons.