People who are unemployed, in social emergency or who want to make their way in life still have a last chance to enter the market of private financing through social microcredits.
These products allow acquire up to 25,000 euros, with very favorable conditions: lower interest rates, demands not as hard and free of commissions and other expenses.
This article can know what kind of microcredit exist, conditions and, most importantly, the requirements to ask for access to this special funding source.
Microcredit for people at risk of social exclusion
Social microloans are banking products that provide liquidity to those who have closed their doors to any kind of funding.
Unemployed, people experiencing social exclusion, etc. are some of the profiles that are able to access any of these loans.
Not for nothing is the last remedy available to accept their demand in any kind of funding. There are even variants granted towards the entrepreneurial projects of these persons, provided they have an acceptable degree of viability and thus the gain to close to 4% interest.
It represents a very beneficial financing model for the interests of these people, since they can access up to a limit of 25,000 euros, which go to finance their basic needs: food, housing, education of children and even develop a business project.
But to do so they must have the approval of the issuing of these products, which will study each case before accepting the application entity.
More lenient conditions
The beneficiaries of any of these microcredit may be in luck, as the terms of engagement are much more advantageous than other conventional sources of funding. For starters, they have a soft interest rate, exceptionally tolerable terms by all households and in any event, located below 7% -10% that generally applied by banks to their personal loans.
The exemption from costs is another feature. His contract does not include any commissions or other expenses from management or maintenance that demand encarecerian.
As a result of this business strategy, beneficiaries will only devote their economic effort to return the claimed amount with a minimum interest through various monthly fees and to complete its amortization period that usually takes place with a maximum of five to six years.
But if there is a defining characteristic of these social products is none other than the complete absence of collateral or personal guarantees to support the operation. You only need to prove the personal or family situation, and if your purpose is to start an entrepreneurial activity, sufficient to present the project, though, must be viable.
The offer of social microcredit
From these characteristics, there is not much choice. The proposals are very limited, with little room for surprise. To the extent that, in recent years, supply has fallen substantially and is limited to very specific formats and with many similarities between them, where support for the business momentum is gaining ground to more social purposes of loans .
Microbank is the main source of these social products, proposing a number of them in their current offer, although most are destined for the field of entrepreneurship.
The most significant, and greater social significance, is the Personal and Family Microcredit, which is designed for people earning less than 18,000 euros a year or households with combined income below 36,000 euros a year.
Not only financing projects linked to its development is contemplated, but extends to unforeseen situations that may affect these people, may be financed as expenses related to housing, health and education, among other needs.
In any case, funding the entire project, with a ceiling of 25,000 euros, linked to a fixed rate throughout the operation. Its repayment term is six years, which may include a grace period of up to 12 months.
Creating the first company
Other microcredit, however, based its strategy on providing the youngest of a monetary tool to promote self-employment through business projects.
Unicaja, under this scenario, developed the First Loan Company, which gives the amount of up to 80% of the investment, with a maximum of 18,000 euros, and having a maximum repayment term of five years.
Continuing this this commercial strategy, Caja raises another model that meets these needs and provides financing to young entrepreneurs through its loans with a fixed rate of 3.5%.
In both cases, recipients will need to prove the viability of the project, with the added advantage that they do not have to provide any guarantor or account for their personal guarantees.