[vc_row][vc_column][vc_column_text]Have you ever had the need to get a small loan to pay for basic things in your everyday life? Sometimes the best option is to get a Micro Credit.
WHAT IS A MICRO CREDIT?
A micro credit is a very small loan that is granted to individuals who are looking for a quickly available source of financial means without having to recourse to the traditional banking system (which, on its part, comes with more stringent requirements, such as proof of collateral, steady employment, verifiable credit history, etc.). Micro credits are granted through a credit agreement and may take the form of a deferred payment, loan or any equivalent means of financing.
IS THERE ANY REGULATION IN SPAIN TO GET A MICRO CREDIT?
Micro credits amounting to or exceeding 200 euros are regulated by the (Law 16/2011, of June 24, on Consumer Credit Contracts). Contracts credit the total amount of which is less than 200 euros are excluded from this regulation and do not have any legal protection in Spain.
In relation to micro consumer credit contracts falling under Law 16/2011, said regulation specifies the legal framework to be respected, such as pre-contractual information requirements as well as requirements concerning the form and content of the consumer credit contract.
As far as the unregulated micro consumer credits amounting to less than 200 euros are concerned, the specific conditions and requirements for entering into the consumer credit contract depend on the micro credit provider in question and their internal regulation.
REQUIREMENTS TO GET A MICRO CREDIT
Taking up a micro credit amounting to less than 200 euros typically only requires you to:
– have reached legal age;
– be resident in Spain; and
– hold a bank account in Spain.
These types of micro credits are particularly easy to obtain and may be effected online or by phone.
IS IT BENEFICIAL FOR MY BUSINESS?
Taking up a micro credit may be a suitable option particulary for whom is looking for a fast and easy way to receive a small amount of money for domestic or business activities and is confident that he or she will be able to repay the credit on time. It generally entails the following benefits:
– No requirement of collateral: One of the main advantages of a micro credit is that in order to conclude a consumer credit contract, one is generally not required to provide a collateral.
– Fast liquidity: The processing of micro credits is very fast, typically taking only one or two business days.
– Flexibility: The conditions concerning the repayment of the credit are usually characterized by a high degree of flexibility.
On the other hand, it is important to be aware of the fact that the interest rates (TAE) applicable to micro credits are usually higher than those applicable to traditional bank loans (typically 4-7%).
HOW CAN LEXIDY HELP YOU?
If you are interested in obtaining a micro credit in Spain, we mainly do intermediary service between lenders and consumers. We can assess your business needs and find a feasible creditor that adapts your necessities.