Here we will take a closer look at the alternatives that apply to those who are interested in borrowing USD 9,000. This amount, which for not long ago was almost impossible to borrow. From the beginning, only micro loans went up to about USD 3,000, this is something that has now started to change and there are lenders offering their customers to borrow over USD 10,000.
The difference we make here is that micro loans will be repaid for a maximum of a few months while the term of private loans starts in a year and goes up.
Micro loan of USD 9,000
As has been said, it has become more common for lenders to offer loans on this amount. However, one thing to be prepared for is that it is not certain that it is possible to borrow this amount as a new customer. Some have rules that say that a previous loan must be taken out and repaid.
When it comes to micro-loans at this level, it is almost always a maturity that extends beyond the usual 30 days. Often, loans of USD 9,000 should be repaid in three months instead. There may be some exception where there are 30 days that apply, alternatively it may be so that you have the opportunity to choose this maturity yourself.
If you pay back a loan of three times, the repayment will be in USD 3,000 each time, two repayments will be USD 4,500 and if everything is to be repaid after only 30 days, USD 9,000 is directly applicable. Thus, it is always the question of quite a lot of money that should only go to amortization.
Private loan of USD 9,000
As I said, it is not a sum that the big banks lend. Therefore, only smaller lenders are an option. The interest rate for private loans that are so small will also always be high.
If you choose to borrow money, a balance must be made about what is best for private loans and micro loans. In general, it can be said that private loans have a lower monthly cost as the interest rate is lower and the repayment rate is not at all as high. In total, however, it is often the case that the price in USD becomes higher for the loan, because the reason for this is that you pay interest for a longer period.
So even though the interest rate is lower, there is more money in total. Then, as I said, it was an advantage that the amortization rate is lower. For example, if you borrow USD 9,000 for a year, you will pay off USD 750 each month, which is much less than for micro loans.