Social microcredits, what are they and who grants them?

Surely that on more than one occasion you have heard of the so-called microcredits social, and you do not know exactly what they consist of, and most importantly, if you can sue them and under what conditions. Your interest in these banking products is not strange, because it is one of the most advantageous financing channels for your personal interests, without a doubt, and in any case above any offer of personal, consumer or other loans authorized by financial institutions.

But above all, you should know that these credits have a very well defined destination, which not everyone can access. They are intended for people who cannot enter traditional financing channels. Generally 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. So what in recent years they have notably decreased their offer. Not surprisingly, the loans of this nature that were developed by the defunct savings banks are no longer offered to customers. And that as a consequence of the economic crisis that has plagued Spain since 2008, it is already very difficult to find them at this time, with the intensity of yesteryear.

Who grants them?

Most of these loans come from Microbank, a division dependent on la Caixa, which is responsible for 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 access this kind of private financing. There is no other solution than the conventional and general offer that banks provide under their most commercial approaches.

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

However, and as the main novelty today, A series of proposals are being developed to finance entrepreneurial projects for unemployed young people, and even long-term ones. Their main objective is that their applicants can find their employment channels as new employers or self-employed workers. With several credits that meet these characteristics, and that present very competitive conditions for their formalization, where the interest does not exceed 6%.

Identity signs of social microloans

Surely you have ever heard about them, but you do not know exactly what they are and what their main benefits are. They grant you amounts of up to approximately 20.000 euros, always destined so that its applicants get out of the situations of social exclusion in which they are immersed.

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

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

With regard to their repayment terms, the differences are not as obvious as in traditional loans, although they have great flexibility. So that you can close them quickly, or take up to 6 years to finalize the operation. As a consequence 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 do it through other credit proposals.

What microcredits can you contract?

At present, and although its offer has decreased notably, you are still in a position to order some of these social products. As long as you comply with the requirements imposed by the issuing entities, and generally 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 very useful for your interests.

Microbank has developed several initiatives of these characteristics, although with completely different marketing perspectives. One of them comes from your Personal and Family Microcredits. These are products that grant their recipients a maximum amount of 25.000 euros. With a repayment term that reaches its ceiling in 6 years, including a grace period of up to 12 months.

They can access this type of financing people who have annual income of less than 18.000 euros, or family units with joint incomes of less than 36.000 euros. Their contributions are used to finance less conventional expenses, such as those that affect 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 improving the energy efficiency of your home or business. And for people who want to start a business project, Microcredits for Entrepreneurs and Businesses have been enabled.

If you want to become an entrepreneur and you want to start a self-employment project, a self-employed person 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.

While Caja Laboral's commitment has been reflected in another financing channel with similar characteristics. And that in this particular case It is intended for young entrepreneurs, provided they prove the viability of their business project. With the advantage that the presentation of a 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 access social loans, and everything will depend on the profile you present in the request for the claim. On the other hand, you will have to 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 manage to formalize them, you will have unbeatable conditions.

In any case, there will be no choice but to return them in the agreed terms through a system of monthly installments, and as if it were normal credit. To be granted, you must present a viable project, since if not, they will reject it for sure. And of course, that you can adapt your request to some of the following tips that we expose you.

1. There will be no other solution than scrupulously comply with all requirements demanded by the issuers of these products of a marked social nature, since the candidatures are analyzed in great detail and precision to be accepted.
2. If you are not included in any of the social sectors to which they are directed, You better give up the attempt, because they will surely deny your claim, and you may waste a lot of time in its process.
3. You must respect their subscription conditions, since even if they are social microcredits, it does not prevent you from skipping the contract, which on the other hand, would have heavy penalties through the expenses they impose on you.
4. They will not require you to have contracted other products (investment funds, pension plan, time deposits, etc.) with the entity. If anything, a checking account where you can receive the amount demanded, and send the monthly installments to finalize the operation.
5. Nor will you need in any case the endorsement of other people (family or friends), but only that you respond to the project, or comply with the requirements presented by the banking entities.
6. You will be able to access amounts that are not excessively high, which reach a maximum limit 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 forced to pay any commission (study, opening, early cancellation, etc.).
8. The offer that you will find from now on will be rather scarce, and perhaps 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, immigrants, or a single-parent family will you be in perfect condition to start the application for any of the microcredits authorized by the banks.
10. And finally, remember that before your request, you will be obliged to read the clauses of the contract, to make sure that you really meet all the requirements so that you can finally sign the contract with the bank.