How to Start a Micro Loan Business

In order to get started in whichever form of business, loan is the primary thing needed.

If you are just starting your small business, what you need is a micro loan which amounts to 35,000USD-below.

In this article, you will learn the basics if you are also trying to start your micro loan business.

When micro loans become the topic of the town, the first thing that enters the mind of people is the Small Business Administration. But since the necessity for business venture is now on the rise because of the instability of the economy, more and more entrepreneurs are venturing into the micro loan business. The several uses of a micro loan are the following: equipment, machinery, fixtures, furniture, supplies, inventory and working capital.

Tips to Help You Start a Micro Loan Business

When it comes to ease of accessibility, nothing could ever beat micro loans because they are compatible with anything unlike a traditional loan. It is so easy to apply in this kind of business provided that you meet certain criteria set by the authorized rule-setting body.

The first step that you need to go through in a micro loan business is to be on the lookout for a micro loan. In order for you to successfully do this, you need to conduct an extensive research. Since the Small Business Administration is an accredited lending institution, this is one of the best starting points for you.

Having a bad credit is not a good idea so, for you to receive your loans flawlessly, you need to maintain good credits. You must also bear in mind that every lender differs from the other so there will also be different criteria for everyone. Paper works are also very important because these will guide them to have informed decision regarding your application for the loan.

Honesty is the best policy. So before you pass your business plan to the lender, make sure that all your written information are true and correct. If you have something misunderstood, you must ask the lender about it because once you have given wrong information; your application will just be detained. By doing that, you will also be giving an impression that you are so serious with regard to your application.

It is also very important that your lender is just in your locality because the business transactions will be much easier. Just think. If you have chosen to do business with a lender who is in another state or country, the time zone is different so you will have a complicated communication. In order for you to be able to communicate well with your certain lender, it is very important that he or she has his or her own online service so that communication will be more accurate. Now, here is the tip. Just before you choose your lender, make sure that you conduct extensive research first.

25 Comments

  • bongani said on January 10, 2012
    could you kindly provide me with more information on starting a micro lending business
  • Zinhle Nxumalo said on October 16, 2012
    Could you please provide me with more information on starting a micro lending business. I am a very low income earner working for an NGO as Community programme leader in Gauteng(South Africa).
  • Bongane said on May 13, 2013
    Hi there, I am looking to start a micro lending business and I live in Gauteng - Midrand. Please would you supply me with more info on how to go about it?
  • Kelly said on July 14, 2013
    I would like to start/add a micro lending business to my existing business, Free State.
  • Nathi said on December 27, 2013
    Greetings, Please guide me on how to start a micro lending business, I am in Gautend, East Rand. I need info...
  • Irene said on January 17, 2014
    hi i would like to have more info i want to start a micro lending business. i stay in Johannesburg. I have registered my business with Cipc ,i would like to know the next step. Thanks.
  • Likhethe P .M said on April 10, 2014
    I stay at Sebokeng township, is located in the Vaal(Gauteng). I will like to know more about this business, I'm so interested. Will u please help me.
  • prince gabriel said on May 16, 2014
    i want to start a micro finance here in ukraine, i am a foreigner, and i live currently in lugansk, how do i go about it please
  • innocentia makhura said on September 2, 2014
    I would like more info as I want to start a micro lending business I'm currently staying in Tembisa in the Eastrand (gauteng)
  • Zakhele Ngqulunga said on September 12, 2014
    I'm interested in starting a micro loan business, I need information on where to start and go. i'm currently in the transport business I have enough capital to start. Please help.
  • QUINCY NEFF said on September 26, 2014
    i'm interested in starting a micro loan business in katu...northern province...could u please give advice on how to start....
  • felicia Nqumse said on November 27, 2014
    Hi, my name is Felicia lam interested in starting a micro loan business. I am in Port Elizabeth. please I am asking for your advice
  • Rudi said on December 7, 2014
    I want to start a Micro-lending business. Where is the most popular place to set it up. What is all the requirements, documents I needed. Witbank, MP
  • Johannes said on December 7, 2014
    hi I'm looking forward to start a micro lending business, I need advice and more info about this business.
  • busanu said on January 2, 2015
    Hello.am in middelburg mpumalanga want. Pto start a micro loan lending business. please help
  • Christopher Hill said on February 2, 2015
    I would like a comprehensive guide to the exact requirements both financially as well as legally required in starting up a micro loan business. Regards,
  • David said on April 21, 2015
    could you tell me, what are requirement to start micro loan business.
  • linda Ndlovu said on May 17, 2015
    Hi I'm from South of Johannesburg at Orange Farm. I want to start a micro lending business. can you send me more info. Thank You
  • koketso said on June 12, 2015
    Hi, I would like to start micro lending business. I'm from klerksdorp. Can you send me info. Thanks.
  • Rachel said on July 29, 2015
    Hi there, I'm from centurion and would like to start a micro lending business so I would like to know the process on where or how to start step by step
  • Calmese said on September 2, 2015
    If you like more information on starting your own micro-lending business, please email: jcalmese@hotail.com
  • Gugu said on September 9, 2015
    What are the requirements in starting a micro lending business
  • Oyeyemi said on October 2, 2015
    I live in Ghana and will like to have some advice on how to start a micro lending.
  • Yvonne Malesa said on October 9, 2015
    Hi there, I reside in Mamelodi, Pretoria east and would like to be assisted or be given some advice on how to start a micro lending business, where to register, where and how to get funding,which steps to take until everything materializes. Your help will be much appreciated. Thanking you in advance
  • Zanele said on October 26, 2015
    Hi, Please assist and advice how to start a micro lending business in Tembisa south africa.

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