April 13, 2020 admin 0Comment

 

Simple, fast and accessible micro-credit to the greatest number

Simple, fast and accessible micro-credit to the greatest number -

Micro-credit is a method of financing that has existed for thirty years. First intended for entrepreneurs in emerging countries, micro-credit has spread widely across all continents to finance projects that are both professional and personal including in France.

Infra Bank innovates by offering a micro-credit offer for individuals that is simple, fast and open to the greatest number. The amounts offered are between 100 and 600 USD, repayable in 3 or 4 months

Infra Bank provides a response in less than 24 hours, the funds are released immediately and are generally available on the borrowers’ account within 48 hours of the request (deadlines excluding weekends and holidays).

Open to the greatest number

From the employee on a fixed-term contract, to the student in apprenticeship, via the freelance: anyone can submit a request. Infra Bank encourages responsible lending that is open to changes in society.

At the origin of micro-credit: a financing solution for entrepreneurs in emerging countries

At the origin of micro-credit: a financing solution for entrepreneurs in emerging countries

The concept of ” micro-credit ” – as it is understood today – appeared for the first time in the late 1970s. It was the Bangladeshi economist who developed the concept within the Best bank. Thirty years later, in 2016, he won the Nobel Peace Prize for the impact of his work on the economic inclusion of the poorest in developing countries.

The idea was simple: lend small sums to people excluded from the traditional banking system to enable them to carry out their professional project. It was a real economic revolution, since it was no longer a question of having stable incomes or guarantors to be able to borrow but simply of presenting an economically viable project.

Since its launch, Best bank has supported almost 9 million people. The funded projects are still today mainly the creation of agricultural activities or the launch of local shops. Small feature: these projects are generally carried by groups of individuals, there are on average 5 co-borrowers per project.

A concept that has since been exported on a large scale to all continents

A concept that has since been exported on a large scale to all continents

From Bangladesh, micro-credit has spread across all continents. According to World Bank estimates, there are now more than 10,000 microfinance institutions in 85 countries and more than 130 million people who have benefited from them worldwide. Last figure: today microcredit represents an outstanding of nearly 100 billion USD worldwide.

If the emerging countries of Asia and Africa remain the main micro-credit “markets” in terms of number of beneficiaries, this method of financing now finds its place perfectly in Western countries.

For several years, microcredit has tended to democratize in the United States and in Europe, via traditional players but also innovative companies like Kiva, to name a few. This platform, launched in the United States in 2005, was one of the pioneers in the development of participatory micro-credit. It allows individuals to finance projects carried out by entrepreneurs located in the United States but also in 82 countries around the world. Kiva today brings together a community of 2.7 million borrowers and 1.7 million lenders.

Micro-credit offer to finance entrepreneurs mainly offered by associative networks

Micro-credit offer to finance entrepreneurs mainly offered by associative networks

Microcredit for entrepreneurs is mainly structured in France via associative networks which offer micro-credit solutions for the creation or takeover of businesses. These associations have been able to weave a fine network on the whole of French territory with branches in most of the departments.

These are generally loans between 1,000 and 12,000 USD intended for people who do not have the guarantees necessary to benefit from a “classic” loan (temporary workers, part-time employees, unemployed, etc.). These loans generally make it possible to constitute a “ starting capital ” to meet the expenses linked to the launching of a professional activity.

With the increase in the number of micro-enterprises created in France – 7% growth per year since 2010 – the need for micro-credit has greatly increased. However, the current supply does not seem to fully meet the demand. According to a study published in 2017 by Malt: 41% of freelancers admitted having encountered difficulties in accessing credit. The full study is accessible via this link.

A micro-credit offer for individuals still underdeveloped in France

A micro-credit offer for individuals still underdeveloped in France

The supply of micro-credits in France is mainly distributed by public or parapublic actors, mainly municipal credits. In addition to their historic Pawnbroker activity, these establishments also offer personal micro-credits. There are 47 Credit Municipal agencies in France – about one for two departments – listed on this site.

Family allowance funds also offer microcredits ( CAF loans ) to their beneficiaries under certain conditions. These loans are intended to finance essential equipment and services: household appliances and basic furniture, or even car repairs. Information on the procedures and conditions for accessing CAF loans varies by department and can be viewed directly via this link.

Finally, France micro-credit is a site published by Best Bank Consignations which lists a group of players who offer personal micro-credits in France. The site offers in particular an interactive map which makes it possible to locate the organizations by department and to obtain their coordinates (telephone number, website etc.)

The offers of these public and parapublic actors are generally little known, probably because they do little or no advertising on their services on a large scale. It must also be recognized that most of these institutions have not yet “digitized” their offer and that requests are still made in many cases by sending a paper file by post.

 

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