For those who want to borrow USD 7,000, there are two options. One is to take a small private loan and the other is a micro loan of the slightly larger model. Here we will look at these two options a little closer.
The big banks usually start lending money in the form of private loans from about USD 20,000. However, there are a number of smaller lenders that lend out much smaller amounts. It is thus one of these that you can aim for. Something that you must then keep in mind is that all lenders who lend from, say, USD 5,000 will not have loans of USD 7,000 in their range. This is because they only lend at intervals of USD 5,000. But there are some lending institutions that lend out as little as USD 1,000 in the form of private loans where you can easily get a loan of just USD 7,000. However, they are not very many.
You can then repay the debt for a longer period
The big advantage of a private loan is that you can then repay the debt for a longer period. A regular private loan never has a maturity of less than 1 year and this can normally be up to about 5 years. Thus, the monthly cost will not be as high as for a micro loan. But one thing to watch out for is that it often actually becomes more expensive overall to borrow in this way. Even if the interest rate is lower, you pay it significantly more times, which leads to a higher total price.
The second alternative is a micro loan of USD 7,000. It is still not common for lenders to lend such large sums in the form of micro loans, but more and more people are always offering this. What distinguishes a micro loan of USD 7,000 against the early ones of up to USD 3,000 is that you normally do not repay the loan in only 30 days. Here, instead, the loan must be paid in 2-3 months. Still a heavy repayment per month but not as high as for a shorter loan.
The advantage of a micro loan is that the money will come into the account faster. Then it is also quite possible that it will be cheaper overall. However, this is not something that should be taken for granted why it is very important to compare the different lenders before making a decision. The big disadvantage then is that the loan should be repaid as quickly as compared to a private loan.
We advise on lenders
Below you will find a list of the lenders dealing with micro-loans that we have on this site that lends USD 7,000. You can quickly see which ones are the cheapest for this particular loan amount. You can find a more detailed comparison in our large comparison of micro loans of USD 7,000. If it is a private loan you are looking for, the tip is that you visit our department where we compare private loans.