Are you needing financial help to start a business or pay off urgent debts from an emergency? In these cases know what are microloans and how do they work it may be the perfect solution.
This form of loans is used by many Spaniards since it is a type of financing with easy repayment and that allows quick solutions to problems that arise unexpectedly.
Advertisements
If you want to know how microcredits work in Spain keep reading this post, where we will tell you all the information you need to know.
Advertisements
In this article you will find:
What are microcredits?
They are loans of small magnitude, these are granted to people who need short-term liquidity and for not very high amounts of money. In general, these types of credits are intended for people without resources, who cannot easily access the credits that are offered by common financial entities.
The microcredits in Spain arose with the aim of ending social and labor exclusion, which many faced when they did not have the resources necessary to meet the requirements of many banks, especially during a situation of mass unemployment.
Advertisements
Characteristics of microcredits
Most of the entities that are in charge of granting microloans usually operate over the internet. But this is not the only relevant characteristic they possess. Among the main characteristics of microcredits we can highlight the following:
- They are a source of financing for all types of companies, whether formal or informal.
- Loan repayment payments are made at a convenience, that is, according to the individual possibilities of the person requesting it.
- The return of the money can be short or long term.
- They are adaptive, practically anyone can request them.
- There are different payment methods depending on the type of microcredit.
- Depending on the terms and conditions of the financial institution, applicants may not have previous experiences or be on delinquency lists and still receive the loan. Keep in mind that obtaining microcredits with Asnef is possible, as long as you have a good evaluation from the financial entity.
How do microcredits work in Spain?
The way in which microcredits work within Spain is quite simple, they provide you with money to individuals or entrepreneurs who need it quickly to meet others Payments.
Advertisements
Generally they tend to be very flexible in the methods and lapses for the return, since the majority of the applicants are people who do not have many financial resources.
In order to apply for the micro loan It is necessary to first raise the reason why the money is needed, and if it is for a business, its profitability. After this, the financial company will be in charge of reviewing some data and confirming that it is a viable person for the loan.
Advertisements
The requirements that the applicant must meet may vary depending on the financial institution, however, the general conditions may include these:
- A self-portrait confirming the identity of the applicant.
- Valid DNI or passport, where the stay within the country is demonstrated.
- A bank account number of a Spanish entity.
- Telephone number or email as a means of communication.
Microcredit modalities
These are classified into different types or modalities, which depend on the request made, and are these:
Individual microcredits
These are granted individually to a particular person, who will be the owner of the request and will be in charge of guaranteeing the repayment of the loan granted. Some entities may make additional requests in these cases, such as a pay stub or not belonging to delinquency lists.
Solidarity microcredits
They are quick loans that are granted to groups of people, who together are responsible for assuming the debt in solidarity. In a particular case where one of those involved defaults on payments, the rest of the associates must take charge of assuming responsibility for returning the money.
Communal microcredits
They are so named because they are granted to large groups of people, who reciprocally guarantee the payment. In general, these are associations chaired by a community, who seek to improve credit and financial services for each of the members.
The microcredit application It is not only beneficial in the moment to solve financial problems, it also allows to start credit history, which in the future allows requests for larger amounts to banks common.
