DUSHANBE, August 11, 2016, Asia-Plus -- Last time we talked about the group lending, today we have prepared material about risks of getting loans from private individuals, says an official press release issued by Spitamen Bank.

“Along with a lot of financial institutions (18 banks and about 116 microfinance institutions), providing credits and loans are also involved and private individuals. The activities of most of the private lenders, in fact - usury as "loans" are issued at a very high interest rate and it is illegal.

“Unfortunately, it happens that some citizens use the services of moneylenders. There can be several, and it is a low financial literacy, and the relatively high rate of a loan.

“Interest rates of private individuals are usually higher than the financial institutions, and they do not care whether the borrower is able to repay the debt or not, since in any case they will get their profits, either in the form of withdrawal of the pledged object, either in the form of stranded percent.

“Before taking a loan, you should think carefully about everything, if you can somehow get along without it, do not take. Well, if no additional funding, not solve the problem, it is recommended to apply to banks or microfinance institutions (MFI), because their activities are controlled by the State. It guarantees the protection of the interests of clients of financial institutions, the leading official activity. Also, do not forget about the competition between banks and MFIs, which resulted in customers every time, offers products and services under tariffs with better conditions than ever before.

“Remember!

“Loans from individuals contain big risks for those who receive them.  “Reservoir” interest rates are often leads to the fact that their customers get into deep debt hole.

“Beware of loans from individuals!”

Spitamen Bank is a bank operating nationwide in Tajikistan, under license from National Bank of Tajikistan.

Spitamen Bank started its Microcredit Deposit Organization in the country as Spitamen Capital in 2008 leading to a banking license from the National Bank of Tajikistan by 2014.  The company holds the license for banking operations in both local and foreign currency.