This is an article for those who are interested in borrowing USD 8,000. Here we will look at the two different options that you have if it is precisely this amount that you wish to borrow. You can also find some price information that will hopefully help you make a decision.
When you think of loans under USD 10,000, it is natural to think of micro loans. This kind of fast loan that appeared strong in the market in the mid-00s is one of the possibilities. From the beginning it was usually only possible to borrow up to USD 3,000 at a time, but this is something that has changed in recent years. Nowadays, many lenders are offering their customers to borrow as much as USD 10,000 in this way.
Something that has also changed is how it works with the maturity of the loans. From the beginning, it was almost only 30 days. However, this is not particularly smooth for larger micro-loans as it will be a very heavy repayment directly. Therefore, loans of USD 8,000 are usually divided into either 60 or 90 days. So there are either two or three repayments.
The disadvantage of micro loans is that they are generally very expensive and that the amortization rate is high. For it is whether it is two or three months on which the loan is repaid. The advantage is that it is a relatively easy loan to obtain as the application process is smooth and the money everything that often comes into the account quickly. Although it is expensive to take a micro loan, it can actually be cheaper than a private loan.
This is when you pay interest for a much shorter time, so even though the interest rate is higher, the cost is totally lower. Whether it is cheaper or not can not say on the straight arm as it is very variable what prices the lenders charge. It can differentiate up to USD 1,000 between the cheaper alternatives and the expensive ones. Therefore, always make sure to compare carefully before submitting any application.
When it comes to private loans, one should quickly realize that not many lenders lend just this amount. The big banks go straight away as they do not lend such small sums. Then a number of smaller lenders also go away as they only lend USD 5,000 and USD 10,000. So if it really is USD 8,000 you want to borrow, there are not that many options left. But that does not mean that it is not possible to borrow as there are some lenders offering private loans from USD 1,000 upwards without such large intervals.
The advantage of a private loan is that the interest rate is lower, although this does not automatically improve. Then the amortization period is also considerably longer. Here you can normally choose to repay a loan of about 1 – 5 years, which means that the monthly repayments will be much lower.
It is precisely that the amortization rate is so much lower that it does not automatically become cheaper to borrow in this way even if the interest rate is lower. In total, it can undoubtedly be more expensive to pay less interest though more times than to pay a high interest rate few times.
Lenders offering micro loans and private loans
This is a comparison that you must make before you borrow and also a position you must take. Maybe it is worth paying a little more to borrow the money for a longer period of time?
Below you will find a list of a number of lenders offering micro loans of USD 8,000. There you can quickly see what prices they charge for a loan. Then you also quickly see that there is a big difference in how high the price overall is.
For a more detailed comparison of micro loans, you can visit our department where we compare micro loans of USD 8,000. If it is instead a private loan you are considering, it is instead our comparison of small private loans you should check.