Micro credit simulation
You are an individual or a professional and you need to borrow a reasonable sum for a very specific project or you cannot use the current banking system: Micro credit a possible solution.
What is micro credit?
By definition, micro credit is a loan granted for a small sum of money to people rejected by the traditional banking system because of the weak real guarantees they have or the lack of personal contribution for example.
This micro credit will be granted under certain conditions, the primary goal being to justify that this credit will allow wealth creation and / or that it will promote activity.
Micro credit can be of two types, personal or professional. This difference is reflected in recipients, amounts, durations or even various goals.
Please note that this microcredit generally generates high interest rates, and like any credit it commits you and must be repaid. You will need to check your repayment capacities before subscribing to it.
To consider subscribing to this microcredit, many organizations offer you upstream to carry out a simulation of the desired microcredit.
Personal micro credit:
As discussed above, micro credit is granted for certain people, for a certain purpose and for a limited amount.
Who are the individuals who can subscribe to a personal micro credit?
Personal micro credit is primarily intended for people excluded by the current banking system. This exclusion may concern in particular people with low incomes such as the unemployed or recipients of minimum social benefits. If you are the subject of an over-indebtedness procedure, generally, you cannot access this type of loan.
What are the necessary conditions?
It will also be necessary to justify the request for this microcredit by a personal project allowing social or professional integration such as for example to finance your driving license, the purchase of computer equipment, the repair of a vehicle, or the payment of medical care.
The goal stated above therefore makes it possible to differentiate microcredit from certain credits such as classic personal credit or consumer credit.
What are the terms of personal micro credit?
In practice, personal micro credit is taken out for amounts ranging from $ 300 to $ 3,000 (or even $ 5,000 in exceptional cases) and for a period varying from 6 to 36 months. It can, moreover, be repaid in advance if the borrower can. The lending agencies themselves set the interest rates, they vary from 1% to 4%. This microcredit does not generate any application fees and it is generally released within 2 weeks to 2 months depending on the organization. Insurance for this loan is not mandatory.
Namely, this microcredit may be subject to the right of withdrawal. Within 14 days after the date of signature of such a credit, you can exercise your right of withdrawal by writing directly to the lender, in particular when you renounce this project.
Who can finance this personal micro credit?
There are many organizations allowing to subscribe to personal micro credit, they may be approved banking establishments, partners of this system, namely the Caisse des Dépôts, the Crédit municipal de Paris, the Banque Populaire, the Caisse d'épargne or again the cooperative credit. In addition, there is also a social support network, such as a neighborhood authority, a municipal center or an association with a social vocation. These organizations will address themselves directly to the banking establishments concerned and will play an intermediary role.
All these institutions making it possible to obtain a microcredit are referenced on the site 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 send 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 organizations have been identified in your municipality, they are still numerous.
The generalities stated on personal microcredit make it possible to differentiate it from professional microcredit. This is intended for business creators and entrepreneurs who have not been able to obtain a loan from banking institutions. This professional micro credit is generally granted to help the creation of a business or develop an already existing business. The sums incurred by this professional micro credit are larger, the maximum amount being up to $ 10,000. To this is added another major difference, the main body that can authorize the granting of such a loan is ADIE, which limits the number of contacts.
Micro credit simulation:
Once the personal microcredit has been selected to finance your project, it is time to use the simulation to assess the impacts of this credit on your budget.
So to guide you in your steps and this with the primary goal of having the best rate, many organizations now offer you a micro credit simulation.
The main thing in the simulation of a credit regardless of the type of credit desired is above all to allow you to make the best choice and this, on significant points such as the duration of repayment of the credit, the most advantageous rates . And this logic is most applicable to facilitate your steps in the application for a microcredit, the interlocutors being numerous.
How do simulators work?
The elements requested during the simulations for micro credit are simple. Usually 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) offers you in 1 click the possible monthly payments, the rate applied, ultimately the overall amount of the micro credit with the application of the rate.
Once the simulation has been carried out, you can take the steps to apply for this microcredit.
The excesses of this simulation?
The simulators are numerous and can offer you different types of loan for the same amount, you must be vigilant when you really want to use micro credit.
Micro credit, as defined above, is distinguished from other loans which have different modalities, by its purpose. The latter should allow wealth creation and / or promote activity. This micro credit can be easily confused with these other loans knowing that their amounts are included in the same tranche for some loans. Thus, when you carry out a simulation, the rate applied, the repayment period directs you to the nature of the loan that is offered.
Be careful, many simulations offer you other types of loans such as consumer loans or personal loans, even if you are looking to take out a micro credit. The latter being more reassuring for the borrower and more advantageous in particular in terms of rate. 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 it offers you during a simulation or even tell you that they do not allow the simulation for certain loans such as micro credit.
Information, the guarantee of a successful simulation!
The seriousness of a simulation will mainly reside in the elements requested during it. Indeed, simulators will ask you for detailed elements to simulate a personal micro credit.
The elements requested which tend to justify that the micro credit will actually be the credit granted are for example, your civility, your age, your contact details, your location, 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 over-indebtedness.
The multiplicity of information requested will allow you to find your way through the various simulations offered. It is also easy to take out a loan of another type if you are not vigilant about the information requested. This is possible by the fact that these other loans are granted for amounts that fall into the same tranche as that of the personal micro credit.
The purpose of the previously mentioned granting criteria is therefore to facilitate the choice of the right simulation for a personal microcredit and consequently, the outcome of this credit request.
Micro credit requires a more complex and much more detailed simulation than most of the other personal loans 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.