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This type of credit is offered to people who can not access banking products and who do not receive subsidies from administrations. A microcredit can be granted to a single person or to several who want to create a business jointly. In some cases, microcredits are granted without commissions and interest rates are lower than the rest of the financial market credits. You can also offer greater facilities for your return.

Also, microcredits can also be personal loans for those who do not have a guarantee or a large monthly income, and can be used to reform the home.

Differences between microcredit and mini credit

Differences between microcredit and mini credit

The microcredits were born in Bangladesh with the idea that people without resources and at risk of exclusion could have access to some money. Currently, these small loans have been converted into quick mini-credits provided by private equity companies, both to people who do not have a payroll and to those who have financial stability but need a certain amount of money at a given time. specific.

Mini- credits are credits of a small amount of money that will be available to the client depending on their income, which does not necessarily come from a payroll. These credits can be from 50 euros or less up to, generally, 800 euros, although some private equity companies can make much higher amounts available to the applicant. Depending on the amount borrowed, if it is small, it will be returned within thirty days, if it is a little higher there will be the possibility of returning it in several installments.

This type of credits must be requested with responsibility, at specific moments and with the assurance that they will be able to be returned within the agreed period of time because, otherwise, chain mini-credits can lead to a constant debt. It must be borne in mind that the interest paid for this type of credit to private equity companies is higher than what would be paid to a financial institution, so living off these loans can be very expensive if it becomes a usual practice

Where to apply for a microcredit?

Where to apply for a microcredit?

If we differentiate between microcredit and mini-credit, assuming that the first is destined for a business project, in 2010 the European Commission created the “European Microfinance Instrument progress”. It is a program that works together with the microcredit providers so that this type of credit increases. 

Through the Administration, you can go to the Ico Microcredit Line or those destined to Women Entrepreneurs and Businesswomen. Also, there is the possibility of going to platforms where loans of small amounts can be requested. Through crowfunding, collective financing can be obtained in exchange for a share in the company’s capital stock. The limit per project is 3,000 euros.

When it comes to a mini loan, both for companies and individuals, many facilities can be found through private equity companies that lend money quickly and that require few financial conditions to grant them, even accepting customers who are in the Financial Credit Institutions, depending on the amount due and the reason. Some of them are:

  • Customers with Financial Credit Institutions
  • Accept also clients that are in the RAI
  • Clients with Financial Credit Institutions and RAI
  • Customers with Financial Credit Institutions
  • Customers with Financial Credit Institutions
  • Customers with Financial Credit Institutions
  • Customers with Financial Credit Institutions

How to apply for a microcredit?

How to apply for a microcredit?

In the case of microcredits intended for a business project, the requirements will vary depending on the entity, the most common are:

  • Present a business plan to demonstrate the viability of the project
  • DNI or NIE, curriculum vitae, Income tax declaration, Labor Life Report
  • Feasibility report, issued by the collaborating entity
  • Application form
  • Professional and / or personal references
  • If you are going to contribute your own funds, indicate which ones are
  • If it is about the expansion of a business, proforma invoices must be submitted
  • Authorization to request a report from CIRBE

If it is a mini-credit, the documentation to be contributed will be:

  • DNI or NIE. It is necessary to be of legal age, some private equity entities do not grant loans to children under 21 years of age
  • Bank account and address in Spain
  • Having monthly income does not necessarily have to come from a payroll
  • Have a mobile phone
  • Authorize access to the applicant’s financial information