The microcredit, also called a minimum amount loan , is a financing granted by financial entities, its main characteristic is that to request it it is not necessary for the person to present the requirements for guarantees or a guarantee. This type of loan is a very simple service to process it, but what is a microcredit for ? On the other hand, this special financing is aimed at low-income people who urgently need the money, to cover the expenses of an improvised in the personal or work environment.
Mostly the profile of the people who access this kind of loan, are usually women, immigrants, unemployed young people, people over 45 years old, people with a disability. There are three ways for the Spanish population to apply for a microcredit . Next is this article, I will tell you what are the types of microcredits and what each one is for .
The microcredit granted by public financial entities
By processing the microcredit by a public body such as the Official Credit Institute (ICO) or the European Investment Bank (EIB), these entities will make it a little more rigorous when approving it.
In general, the microcredit application before these institutions is usually useful for those people who already have an established small business, and need a loan of money greater than the usual amount to be able to expand their company or consolidate a business.
The microcredit application made by public financial entities must be requested by a person who is clear about the objectives of his company. For public banks is stricter, and access to support viable and profitable projects s, in which the employer has the vision of business growth, ie look for the expansion franchise nationally and internationally.
Although they do not require endorsements or guarantees , the requirements demanded by public banks to apply for microcredit are a few more cumbersome but similar to those required by savings banks. On the other hand, the maximum amount that the entrepreneur can request is 40,000 euros.
Microcredit granted by NGOs or savings banks
Spanish citizens prefer to use savings banks to apply for microcredits , because they are not so rigorous when approving the loan. Mostly this microcredit serves as financing for those who want to start the development of a microenterprise, but who do not have the financial resources to do so.
In New York there are several savings banks that offer this microcredit service, some of them are the following: Microbank la Caixa, BBK Solidario, Liberbank, CajaSol, Caja de Segovia, among others. All of them have characteristics in common, since the interest rate usually oscillates between 3 to 5%. The amount approved does not vary, the maximum is 25,000 euros.
The period imposed as the term for the cancellation of the money is from five to twenty years. In general, savings banks do not require commissions. They offer the facility of having several months of absence of payment of fees, giving the entrepreneur the opportunity to establish himself economically. It is because of these qualities that most freelancers and entrepreneurs use savings banks to request a microcredit .
Microcredit granted through websites
Due to the Spanish economic crisis, private entities innovated and created the online microcredit service . Online microcredits serve to support Spanish citizens who urgently need a loan of money to cover any unforeseen event. It can be requested by a web page or by an application on your Smartphone . Microcredits requested through the internet are usually a type of financing that helps the person obtain the money in a maximum period of 24 hours.
This type of microcredit does not require any type of documentation, just enter the website and indicate the amount, the number of installments to cancel it or the time to do so. You must also enter some personal data such as the ID, and the account number where the money will be paid.
As it is an online microcredit , the maximum amount that can be obtained for the use of this loan is 1000 euros. In general, this amount is usually useful to people to cover personal expenses such as buying a spare part for the vehicle, covering the cost of a medicine or some medical consultation, among others. In this way, you will already have in mind how and what a microcredit is for .