Social microcredits, what are they and who grants them?

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microcredits to which young people, the unemployed, single-parent families, etc. can have access.

But especially, you must know that these credits have a very well defined destination, to which not everyone can have access. Están destinados a persons que no pueden tener acceso a los canales de financiación tradicionales.. In general, in a situation of social exclusion, and that are represented by very varied social sectors, such as the unemployed, immigrants, single-parent families and even separated people.

Social microcredits have become one of the banking products with the most marked social character. And that in recent years they have notably reduced their offer. It should come as no surprise that loans of this nature that were developed by the defunct savings banks are no longer offered to customers. And that as a result of the economic crisis that has hit Spain since 2008, it is already very difficult to find them today, with the intensity of yesteryear.

Who grants them?

Most of these loans come from Microbank, a division dependent on la Caixa, which deals with marketing them under different formats. Also through specific and isolated proposals developed by some financial entities. But beyond these initiatives, it is very difficult to have access to this type of private financing. There is no other solution than the conventional and general offer that banks offer under their more commercial approaches.

Right now, entities grant their loans with interest rates, which in the best of cases can be subscribed with a 6% or a 7%. But nothing else, without dental financing being in their offers, for the long-term unemployed, or people in social exclusion, to name a few examples.

Despite everything, and as the main novelty today, A series of proposals are being developed to finance entrepreneurial projects for unemployed young people, and even in the long term. Su principal target es que sus candidatos puedan hallar sus canales de empleo como nuevos empleadores o empleados autónomos. Con bastantes créditos que cumplen con estas características, y que presentan condiciones muy competitivas para su formalización, donde el interés no supera el 6%.

Identity signs of social microcredits

Surely you've heard of them at some point, but you don't know exactly what they are and what their main benefits are. They grant you amounts of up to approximately 20,000 euros, always destined for its applicants to get out of the situations of social exclusion in which they are immersed.

In spite of everything, the appearance of other microcredits with a marked ecological accent is increasingly common, which affect the change in the consumption habits of users. Both in their homes, in vehicles, energy use, etc.

But the great advantage of this very specific type of financing lies in the price that you will have to pay for its concession to finish. Interest rates are very soft, oscillating between 4% and 7%. To which is added that they are totally exempt from any type of commissions or other expenses in their administration. You only have to worry about paying the borrowed money plus its respective interest, without other additional expenses that make the product more expensive.

Regarding their repayment terms, the differences are not as obvious as in traditional loans, even when they have great flexibility. Therefore that can close them quickly, or take up to 6 years to complete the operation. As a result of all these benefits, the end result, if you hire it, is that the financial outlay that you will have to face will not be as high as if you did it through other credit proposals.

What microcredits can you contract?

Currently, and even though its offer has decreased significantly, you are still in a position to order one of these social products. As long as the requirements imposed by the issuing entities are met, and in general they are very hard, so that only the most needy clients can hire them. From this scenario, a couple of proposals have been enabled that can be of great advantage to your interests.

Microbank has developed several initiatives of these characteristics, even though with totally different marketing perspectives. One of them comes from your Personal and Family Microcredits. It consists of products that grant their recipients a maximum amount of 25,000 euros. With a repayment term that meets its ceiling in 6 years, including a grace period of up to 12 months.

They can have access to this type of financing people who have annual income less than 18,000 euros, or family units with joint incomes of less than 36,000 euros. Your contributions are used to finance less conventional expenses, such as those that impact housing, health, education or even family reunification.

Another of his proposals is formalized through the so-called Eco Microcredits, which finance the development of sustainable projects, the purchase of products that respect the environment or improve the energy efficiency of your home or business. And for people who want to start a business project, Microcredits for Entrepreneurs and Companies have been enabled.

If you need to become an entrepreneur and want to start a self-employment project, a freelance or a micro-business that you want to boost your business, this special financing is designed, which will help you make it happen. Within this professional segment, other products have been marketed that maintain similar margins in their proposals.

One of them is the one that comes from Unicaja, which has been promoting the First Company for several years, which grants an amount that in no case may exceed 80% of the investment, and for a maximum of 18,000 euros. Present up to 5 five years to close the operation through its return.

Mientras que el compromiso de Caja Laboral se ha reflejado en otro channel de financiación de similares características. Y que en esta circunstancia particular It is aimed at young entrepreneurs, as long as they demonstrate the viability of their business project.. With the advantage that the presentation of guarantor will not be necessary. To develop the operation, a very competitive rate will be applied, of only 3.5%, aimed at the fixed term.

The ten keys to formalize them

Not all clients can have access to social loans, and everything will depend on the profile you present in the claim request. On the other hand, you should know a series of evaluations in case you are one of the beneficiaries of this very special source of financing. The biggest complication will be that he grants them to you, but if you are one of the lucky ones who manages to formalize them, you will have unbeatable conditions.

Sea cual sea el caso, no quedará más remedio que devolverlos dentro de los plazos pactados a través de un sistema de cuotas mensuales, y como si se tratara de un crédito normal. To be awarded, you must submit a possible project, since if not, they will surely reject it. And anyway, that you can adapt your request to any of the following tips that we expose you.

1. There will be no other solution than Scrupulously comply with all requirements. required by the issuers of these products of a marked social nature, since the applications are analyzed with great detail and precision in order to be accepted.
2. If you are not included in any of the social sectors to which it is directed, You better give up the attempt, because they will certainly deny your claim., and you can waste a lot of time on your procedure.
3. Debes respetar sus condiciones de subscription, since even when they are social microcredits, it does not prevent you from skipping the contract, which on the other hand, would have heavy penalties for the expenses they impose on you.
4. They will not require that you have contracted other products (investment funds, pension plan, time deposits, etc.) with the entity. In any case, a checking account where you can receive the amount demanded, and send the monthly installments to complete the operation.
5. Nor will you need in any case the endorsement of other people (family or friends), but only that it responds to the project, or complies with the requirements presented by the banking entities.
6. You will be able to have access to amounts that are not excessively high, which reach a maximum ceiling of around 20,000 euros, but little more, since their commercialization is not governed by large amounts.
7. Take advantage of its exceptional contracting conditions, since you will not be obliged to pay any commission (study, opening, early cancellation, etc.).
8. The offer that you will find from now on will be quite scarce, and maybe it does not fit your profile as a plaintiff, or perhaps with very harsh conditions for it to be granted.
9. Only if you are unemployed, immigrant or single-parent family will you be in perfect conditions to start the application for any of the microcredits authorized by the banks.
10. And in summary, remember that before your request, you will be obliged to read the clauses of the contract, to make sure that you truly comply with all the requirements so that at the end you can sign the contract with the bank.