The micro loans available are for anyone who may have struggled in the past with bad debt or a poor credit record and are denied access to normal credit because of not being able to meet the necessary requirements. These types of loans are part of a broad range of financial services called microfinance and are available to those with less money or for businesses that are perhaps struggling a little to make ends meet.
Micro loans have been particularly useful in places where poverty is abundant and have proved to be successful in helping entrepreneurs get a business up and running with the minimum amount of cash required. Banks and other financial institutions that offer the micro loans prefer to see people that apply as prebankable instead of how many see them as considered non-bankable. Certain people may be considered prebankable by the lender if a bad credit record exists or they have been previously blacklisted for defaulting on monthly cash payments.
Terms of these loans are normally up to a period of about 60 months and are the most affordable solutions on the market today to pay back as long as you are cautious and apply through a reputable bank or other respected finance institution. General requirements that allow you to apply are some form of identification, about 3 months bank statements and your latest payslips for proof of income. As with any kind of money borrowing plan you will do best to shop around and source the best possible deal you can before applying for one of these micro loans.