The Alternative Financial Services Association of North Macedonia
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Online loans are easy and affordable, but they need to be used responsibly and wisely

Citizens often satisfy their financial needs by borrowing money, i.e. by taking loans from the traditional financial services or financial companies. However, it is very important for every individual to know how to manage their assets wisely because situations are equally risky in the absence of money, but also in a situation where there is no financial viability to repay the borrowed funds.

Financial companies, as the most important part of the non-banking financial sector, have formed an Association of Financial Institutions with the aim of long-term cooperation and positive evaluation by consumers and market regulators. The association is consisted of members of the financial companies such as Tigo Finance, Mogo, Digital Finance, Credissimo, M Cash, SN Finance and Iute Credit, and are dedicated to providing assistance to its clients in advancing their skills and capacities when making sensible decisions for taking loans from financial companies.

Short-term loans are otherwise commonly used to cover emergency costs, health, education, home repairs, etc. While the service is easy and convenient, it should be used responsibly and reasonably. Before taking out a short-term loan, the real need for these funds and the ability to pay on time should be assessed. At the same time, it is recommended that anyone who decides to take out a short-term loan to make sure that he is paying interest, that he has carefully studied the terms of the contract, and that he is taking care of his budget to pay off the loan on time.

Short-term loans should not be used as a solution to long-term financial problems. They should also not be used to pay off other loans, such as mortgages, leasing, etc.

The Association recommends that if the client has difficulties and is unable to meet its obligations, it will in no case borrow from other creditors just to pay off the existing debt, nor should it delay the problem, but should contact the company from where they borrowed money to find a common solution.

To create responsible industry practice, members of the Association also signed a Code of Conduct providing additional protection to the interests of consumers who have received or expect to receive service from members of the Association. This Code incorporates fair commercial practice guidelines and professional diligence criteria, in accordance with fair market practices, goodwill, and responsible lending principles generally accepted in the non-banking credit industry.

The Code of Conduct at the same time provides assurance to creditors of one of the members of the Association that the business practices set forth in this document will be respected. This way of working, according to the established rules, is expected to provide greater trust to the users, but also to the competent institutions and of course to the general public in the financial companies industry.