You are an individual or a professional and you need to borrow a reasonable sum for a particular project or you can not use the current banking system: The micro credit a possible solution.
What is micro credit?
By definition, microcredit is a credit granted for a small sum of money to people rejected by the traditional banking system because of the low real guarantees they have or the lack of personal contribution for example.
This micro credit will be granted under certain conditions, the main purpose being to justify that this credit will allow wealth creation and / or promote the activity.
The micro credit can be of two types, personal or professional. This difference is concretized by recipients, amounts, durations or various goals.
Beware this micro credit generally generates significant interest rates, and as any credit it engages you and must be repaid. You will need to check your repayment capabilities before subscribing.
To consider subscribing to this micro credit many organizations offer upstream to perform a simulation of the desired micro credit.
Micro personal credit:
As discussed above, micro credit is granted for some people, for a certain purpose and for a limited fee.
Who are the individuals who can subscribe to a personal micro credit?
Personal micro-credit is primarily intended for people who are excluded by the current banking system. This exclusion may concern in particular people with low incomes such as the unemployed or recipients of social minima. If you are subject to an over-indebtedness procedure, you generally can not access this type of loan.
What are the necessary conditions?
It will also be necessary to justify the request of this micro credit by a personal project allowing the social or professional insertion like for example to finance your driving license, the purchase of computer equipment, a repair of a vehicle, or the payment of medical care.
The purpose stated above thus makes it possible to differentiate micro credit from certain credits such as conventional personal credit or consumer credit.
What are the terms of personal micro-credit?
In practice, the personal micro-credit is subscribed for amounts ranging from € 300 to € 3,000 (or € 5,000 for exceptional cases) and for a period ranging from 6 to 36 months. It can, moreover, be repaid early if the borrower can. These are the lending institutions that will set the interest rates themselves, they range from 1% to 4%. This micro credit does not generate any fees and it is usually released within 2 weeks to 2 months depending on the organization. Insurance for this loan is not mandatory.
Namely, this micro credit can be subject to the right of withdrawal. Within 14 days after the date of signing such a credit, you can exercise your right of withdrawal by writing directly to the lender including when you give up this project.
Who can finance this personal micro credit?
All these institutions to obtain a micro credit are referenced on the website www.france-microcredit.org. Through this site, your place of residence will be asked and it is this one that will determine the organizations that can help you obtain this personal micro credit near you. These organizations targeted according to your locality will analyze your project and your budget. They will help you build your personal micro-credit file and forward it to partner banking institutions.
This device to acquire a micro credit is not simple. Indeed the interlocutors vary according to your location and even once the organisms identified in your commune, they still remain numerous.
The generalities set out in personal micro credit differentiate it from professional micro credit. It is intended for entrepreneurs and entrepreneurs who have not been able to obtain a loan from banking institutions. This professional micro credit is usually granted to help start a business or develop an existing business. The sums committed by this micro professional credit are more important, the maximum amount of up to € 10,000. To this is added another major difference, the main body that can authorize the granting of such credit is the ADIE, which limits the number of interlocutors.
The simulation of micro credit:
Once the personal micro credit has been selected to finance your project, it is time to use simulation to evaluate the impact of this credit in your budget.
So to guide you in your efforts and with the primary goal of having the best rate, many organizations now offer a simulation of micro credit.
The key to simulating a credit, regardless of the type of credit desired, is above all to enable you to make the best choice, and this, on significant points such as the repayment term of the credit, the most advantageous rates. And this logic is most applicable to facilitate your efforts in the application for microcredit, the interlocutors being numerous.
How do simulators work?
The items requested during simulations for micro credit are simple. Generally you are asked to indicate the desired amount, the expected repayment period and for some simulators, the project for which this credit is desired.
This simulation helps you, as a borrower, to consider the financial impact of such a loan on your budget.
The simulator, according to the variables indicated (amount, duration, project) proposes to you in 1 click possible monthly payments, the applied rate, in fine the total amount of the micro credit with the application of the rate.
Once the simulation is done, you can take steps to fulfill the request for this micro credit.
The excesses of this simulation?
The simulators are numerous and can offer you different types of loans for the same amount, you have to be vigilant when you really want to use micro credit.
Micro credit, as defined above, differs from other credits that have different terms, by its purpose. The latter must allow a creation of wealth and / or promoting activity. This micro credit can be easily confused with these other loans knowing that their amounts are included in the same bracket for some loans. Thus, when you perform a simulation, the rate applied, the repayment period you need on the nature of the loan is proposed.
Beware, many simulations offer other types of loans such as consumer loans or personal loans, although you seek to contract a micro credit. The latter is more reassuring for the borrower and more advantageous especially in terms of rates. The largest sum proposed during these simulations will also alert you to the real nature of the proposed credit as well as the fact of not justifying the purpose of this credit during the simulation.
Some simulators can tell you directly the nature of the loan he offers you during a simulation or even indicate that they do not allow simulation for some loans such as micro credit.
Information, the guarantee of a successful simulation!
The seriousness of a simulation will reside mainly in the elements requested during this one. Indeed, simulators will ask you detailed elements to simulate a personal micro credit.
The requested items that tend to justify that the micro credit will actually be the credit granted are for example, your civility, your age, your coordinates, your locality, your income (last 3 payslips), the detailed goal of the project for which this credit is necessary, your financial situation especially if you are in a situation of overindebtedness.
The multiplicity of information requested will allow you to find your way through the various simulations proposed. It is also easy to subscribe to a loan of another type if you are not vigilant about the information requested. This being possible by the fact that these other loans are granted for amounts that fall into the same bracket as that of personal micro-credit.
The aforementioned award criteria are therefore intended to facilitate the choice of the right simulation for a personal micro-credit and consequently, the outcome of this credit application.
Microcredit requires a more complex and much more detailed simulation than most other personal credits offered, but the relative complexity of this simulation will allow you to have access to a credit that suits you, more reassuring, more rewarding, more advantageous and less dangerous. top