How microcredits work in New York

Microcredit is a form of loan widely used by much of Spanish society. This is financing for a certain amount of money granted by financial entities, which is aimed especially at people who do not have the financial resources to invest in a small business. In this informative article I will give you a brief explanation about how microcredits work in New York .

In general, it is requested by freelancers, entrepreneurs, women, youth and immigrants who present a viable and profitable business project. For low-income people, microcredits are a ray of light at the end of the tunnel, which helps them achieve their dream of starting a micro-business , in order to have a humble job that generates income .

Characteristics of microcredits in New York

Commonly this type of loan is special for self-employed or entrepreneurs , who need financing to start up their innovative idea that will generate more income, or for those who have already started their company but need the capital to cover its expenses. .

Microcredits was an initiative adopted by Spanish financial institutions in order to serve as support to those people who do not have the economic resources, but have the prospect of creating their own micro-business to generate income for themselves. The banking entities devised this kind of loan in order to avoid a socio-labor exclusion.

One of the characteristics of how microcredits work in New York is that the amount approved by the financial institution ranges from a minimum of 10,000 euros to a maximum of 40,000 thousand euros.

Microcredits have a preferential interest rate , generally, it is lower than the interest rate of a traditional loan. The financial institution also establishes preferential conditions such as the ease of establishing a comfortable term for the repayment of the loan , and the absence of commissions .

The main characteristic of microcredit is that when the person without financial capacity goes to the financial institution to request it, they do not need to have an endorsement or guarantee , because the bank will require as documentation the proposal of a Explanatory project that indicates in which item the borrowed money will be invested. In general, entrepreneurs who make use of microcredits do so with the intention of creating manufacturing micro-businesses , restaurants , bakeries , among others.

How microcredits work in New York

The purpose of microcredits is to promote the activity that new entrepreneurs want to develop . This type of loan is based on the support it gives to the community with fewer financial resources, on the facilities offered for its cancellation and solidarity with that person who wants to create their own micro-business .

Microcredits provide the money that the entrepreneur needs to fulfill the dream of setting up his own micro-business, in order to have a better life. Microcredits in New York work as follows:

After the person requests it at the financial institution, it makes an evaluation of the proposal made, as well as the financial capacity at a personal and family level. Similarly, the approved amount will be subject to the entrepreneur's ability to recover money.

Once the applicant returns the entire microcredit to the financial institution, the latter will be able to access another microcredit again for the purpose of remodeling, expansion or acquisition of advanced technology equipment, having the opportunity to opt for a higher amount. Well, with the cancellation of the previous loan, he proved to be a responsible, solvent and of good values.

Procedure to apply for a microcredit in New York

The procedure to request a microcredit in New York may vary depending on the financial institution. However, most entities request the following: A project in which the mission, viable objectives, profitability and planning of the microenterprise are raised.

On the other hand, the documentation that the financial institution will require for the microcredit application will be: The national identification document or DNI, the microcredit application form, the applicant's curriculum summary , some personal or professional references, the statement of the income, a proforma or budget that justifies the use that will be given to the investment, the funds that the applicant would contribute, among others.

Subsequently, the entrepreneur goes to the office of the financial institution of his choice to submit the application for the microcredit . In general, entities conduct an interview where the applicant must expose the profitability of their project .

Once all this procedure has been carried out, the financial institution will assess the information provided by the entrepreneur and in this way will decide whether to approve or deny the microcredit application .

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