Microfinance organizations are famous for their speed in the processing of loan applications for potential borrowers. Many of them are ready to provide the answer to the client already after a couple of minutes. As soon as information about the borrower falls into the MFI, the lender begins to analyze it.
In most cases, an organization employee does not participate in the consideration of the application, the decision takes the program that works in automatic mode. That is why you can get microloans at any time of the day and night.
Often in advertising we can see that MFIs provide loans without relying on the credit history of the borrower. However, this is not the case, in fact, the MFIs almost always make a request to the Bureau.
If banks are more likely to refuse the borrower in the presence of bad credit history, the MFIs can consider the causes of deterioration, and after careful checking to approve the loan.
What we talked above. It has long passed the time when loan statements were viewed manually. Now the credit specialist has replaced the scoring system, which analyzes the information data about the borrower and exposes certain points for each response.
In 95% of cases, the loan decision is made automatically. If the program gives a positive response system, the cash is transferred to the client’s account. If the points are missing to issue a loan, then any convenient way to the organization reports this borrower.
Algorithm of scoring systems in each microfinance organization is yours. That is why having the same data in different companies of the borrower can wait for a different solution. The system algorithm itself is never disclosed by the organization, so the potential borrower can only guess.
Microloge can provide mothers with two children, which works in two works, but refuse to make a man who is not married and has a good salary. The logic of the work of such organizations is still not known to anyone.
If you disassemble an example in more detail, then a mother with children, according to developers of a scoring company, is more leaning towards money, as it can plan their funds and will not allow spending on unnecessary things. That is why it is more likely to provide a loan.
The speed of this system is high enough, since the scoring program can simultaneously process dozens of applications. That is why even with a high workload, the client should not wait for a final decision for several days. Everything happens within 5-10 minutes.
Thus, the work of the scoring system of MFIs is quite interesting. On the one hand, it all passes quite quickly. And on the other, the incomprehensible causes of refusal occur.
But despite the fact that the MFIs are issued as a rule of loans from 5 to 30 thousand rubles, and there is much less period than in the bank. In most cases, it is about 30 days, as they say before the salary, and provide a loan to a citizen by 20 thousand rubles, so that in just a month he returned them back and more with interest, much more risky than to make a loan in a regular bank with a monthly payment a couple of thousand rubles.
We hope that the article was useful for you.