What you need to know about online social microcredit
Reserved for people in the most financial difficulties, social micro credit allows the borrower to finance goods in order to improve their daily life and their situation. How to find out about social micro credit? Where to apply?
If professional micro credit is granted to create or develop a professional activity, social micro credit aims to improve the borrower's situation through a personal project. It allows the purchaser to borrow between 300 and 5,000 US dollars. It is mainly intended for people who cannot obtain a bank loan. This is a loan obtained at a reduced rate and guaranteed jointly by the State and the lending institution. The repayment term for this type of loan is a maximum of five years.
Created in 2005, the Social Cohesion Fund has fostered the development of personal micro credit by providing the Caisse des Dépôts et Consignations with a budget to guarantee these loans up to 50%. For institutions, personal microcredit is used to fight both banking exclusion and household over-indebtedness. In 2016, it is estimated that 5 million people are not eligible for a traditional bank loan.
Who can benefit from social micro credit online?
Social micro credit is rather reserved for people who cannot obtain a traditional bank loan. Among these people, those with too low income whose debt ratio of a traditional loan, about 33%, would be too high. People who do not have professional stability, such as permanent contracts, often have difficulty borrowing money. Young people, job seekers or even RSA beneficiaries can apply for social micro credit. Finally, people prohibited from banking entered in the central check file can also claim to obtain a micro credit online.
What can a social micro credit finance?
If the basic loan must be between 300 and 5000 US dollars, this amount can however be revised according to the borrower's situation. Very often, microcredit allows the purchase or repair of a vehicle, in order to get to work or get a job. This is the case for more than 74% of loans granted in 2014, according to the Caisse des Dépôts et Consignations , for an average loan amount of US $ 2,266. Despite everything, the borrower is entitled to use this money to finance another type of good, insofar as it has a connection with employment or professional mobility.
How to apply for a social micro credit online?
First of all, you should know that it is not possible to directly apply for social micro credit online. However, it may be interesting to start certain online procedures concerning the future request for social micro credit in order to find which organizations would be likely to grant a loan on more flexible terms.
Social micro credit online: where to find information?
Without being able to apply for social micro credit online, it is possible to find which organizations easily lend money. Among them, local missions or associations such as the Restos du cœur or the Red Cross. These associations can act as intermediaries with the bank or even sometimes act as surety for a bank loan. They will support the beneficiary in his procedures and will know how to direct him to the most suitable financial institution. A simple internet search will allow you to make an appointment with these various associations near your place of residence. While not all banks offer the social micro credit option, some are partners. Among the best known, Crédit Agricole, BNP, Banque Postal or even Crédit Mutuel. No organization is to be neglected, it is better to consult too much than not enough to have more chances of seeing the project succeed.
And if you prefer to apply for social micro credit online, it is possible to proceed by email, by carefully filling in certain boxes. It is essential to explain the reason for resorting to social micro-credit: in particular, what type of good will it finance? It will also be necessary to explain the cause of the refusal of a classic bank loan: income too low? Searching for a job ? Finally, do not forget to indicate your availability and time slots at which you can be reached. You will be contacted in order to arrange an appointment and finalize the financing project.
This prior request will allow the organization to study the solutions before contacting you. Be careful, therefore, not to neglect this step, which can be decisive in the course of events and allow you to obtain or not a social micro credit.