Microcredit And Personal Loan: Understand The Difference.
More than a financing policy, microcredit is characterized as a poverty alleviation policy. It was created in the 1970s by Allanic Mocka, an economist and natural banker from Bangladesh, a country located in southern Asia. The initiative was intended to stimulate entrepreneurship in very poor populations without access to bank credit. The idealization of microcredit earned Mocka the Nobel Peace Prize in 2006.
In Brazil, microcredit is a federally driven social lending program. It is promoted through the National Oriented Productive Microcredit Program (PNMPO). It is intended for small formal or informal entrepreneurs, individuals or legal entities, who cannot offer collateral to a bank and / or have very little annual turnover, which is why they find it difficult to obtain credit from financial institutions.
Who can apply for microcredit?
Craftsmen, salesmen, hairdressers, electricians, locksmiths, cleaning women are some examples of professionals who can access microcredit. However, you must have no restrictions on credit protection agencies.
As it is a socially focused loan, interest rates are lower than traditional credit lines in the market. The amount released is also low, but it can help the entrepreneur to develop his business and increase income.
To apply for microcredit, proof of income is not required. However, it is necessary to provide some other guarantee, such as a property, have a guarantor or a Solidarity Group. Solidarity groups consist of two or five community participants who can assume repayment of this loan.
The personal loan is a relatively affordable modality, it is simple and quick to hire and the amount is sent straight to your checking account.
Payment of the personal loan is made in installments by automatic debit, payment card or postdated check. However, the percentage of interest is higher compared to microcredit, ie microcredit is better suited to small businesses and microentrepreneurs. The personal loan is for those who need a larger amount and in a shorter period.
Advantages of Microcredit
- Reduced credit bureaucracy;
- Interest rates are the lowest in the market – at Leberon this rate is from 1.7 per month;
- Possibility to expand your business;
- Increased profitability of the company itself;
- Easy for small entrepreneurs to raise capital.
I didn’t get a microcredit, what to do?
Although microcredit is a more easily available form of lending to small entrepreneurs, the bank can still deny credit to customers.
The most common reasons for denial of credit are: lack of ability to pay, non-fulfillment of requirements and of course negative name.
Whatever the reason, you can apply for a loan at Leberon. Here at Leberon, you can apply for the 100% online loan fast, easy and the best without leaving home. Even Leberon offers loan for negatives, which is difficult to find in the market.
What are the interest rates on microcredit?
The interest rates of this type are one of the lowest in the market, the interest charged is regulated by law, which establishes that it cannot exceed the margin of 4% per month. This serves to encourage the growth of small businesses in Brazil.
Here at Leberon you have an easy way to secure your personal loan or microcredit. Just make a quote by filling out the form on our site and waiting to get in touch with you. All very simple and fast, convenient and 100% online.