We know that the costs of everyday life are many. It is therefore not a novelty that sometimes a small financial aid is just what is needed. Yet accessing the services offered by banks and financial companies is not so simple. The result: the impossibility of obtaining liquidity for one’s projects, or even just to arrive at the end of the month. In such situations, the ideal solution is the mirco loan for small businesses . The name could not be more explicit. In fact, we are talking about small quantities that can be really convenient in times of urgent need. To find out more, stay with us until the end of this practical guide.
Why the micro loan for small business?
The micro loan is a relatively recent product. Born in the province of Naples in 2015 , he began to spread to the rest of the peninsula to the aid of the many families affected by the economic crisis. The initial project started precisely in the city of Nola and involved 50 families. The budget amounted to 10,000 euros, a sort of launch capital that was then increased over time to meet the needs of a growing part of the population.
As anticipated, the strength of the mirco loan is to include in this line of credit those who cannot access traditional financial solutions. The banks, in fact, ask for specific requirements before granting a loan. They are the so-called income guarantees, which in a period like the current one are certainly not the easiest thing to prove. If the pay slip or tax return does not completely convince the bank, the response will be a sharp “no”.
Thus the mirco loan is configured as a “buffer solution” in front of the denials of credit institutions. One of its aims, in effect, is to stem the risk that Italians in economic hardship fall into the trap of usurers.
The economic characteristics of the mirco loan
Because a loan is precisely “mirco” must not exceed 2500 euros . The advantageous condition lies in the APR, which is the Annual Global Effective Rate. With this acronym we are referring to the actual cost of the loan that weighs on the customer who requests it. The peculiarity is that this APR amounts to at least one percentage point less than the legal one.
The duration of the loan is variable, with a maximum limit of 30 months , or two and a half years. The capital will be repaid in convenient installments, the amount of which will not exceed € 100 per month . Therefore, the precise intent to alleviate the most disadvantaged economic situations is evident, offering practical solutions with interest rates that credit institutions would not grant, precisely because they are not convenient.
Following in the footsteps of the mirco loan for small business.
The example given by the mirco loan for small business was certainly positive. Indeed, this pilot project has given rise to various economic initiatives. This is a fund that grants microloans (greater than mirco loans), whose amount is between € 5,000 and € 25,000. The offer is really advantageous, as they are loans to be repaid at a zero rate. As for the amortization plan, it has a maximum duration of 5 years.
What to say? There are no doubts about the usefulness and practicality of the initiative. The clutches of the loan sharks are among the worst. With the mirco loan it is possible to stay away from it and obtain a valid financial support to be returned at advantageous conditions.