This system of mutual aid and solidarity consists of lending small sums to beneficiaries who can not normally qualify for conventional loan .
The microloan is designed for all those who have difficulty accessing standard loans. It must make it possible to carry out certain professional or personal integration projects.
The history of microloan
microloan was born in Bangladesh thanks to Muhammad Yunus, economist and founder of Grameen Bank, and 2006 Nobel Peace Prize winner for “promoting the economic and social development of the poor”. Gradually, this method of financing has spread around the world. microloan arrived in France in the late 1980s.
French microloan in a few figures
microloan in France is aimed at both professionals and individuals. In total, it generates 1.3 billion outstanding. In 2015, 187,000 professional microloans were distributed for an average amount of € 6,000. 75,000 personal microloans were also granted for an average of € 2,200.
The operation of microloan in France
The professional microloan
Professional projects make up the bulk of microloan financing. In this case, it often involves helping to create, take over or develop a small business. In addition, most of the professional micro-credits concern the tertiary sector. This financing makes it possible to start or resume an activity and to acquire the necessary equipment.
Nevertheless, microloan can also be used to finance personal projects. In this case, it is a question of helping the social reintegration, to find a job, a housing, a formation or to help the mobility.
The convergence of several actors
French microloan has a specificity compared to that of other countries. It converges several actors like associations, public services or banking institutions. Thus, competent organizations accompany the projects, making them safer and, at the same time, lowering the cost of microloans. The State also intervenes in certain cases, through the guarantee of the Social Cohesion Fund.
Microloan, a socially advantageous but expensive system
microloan is usually small compared to conventional loans from banks. In general, personal microloans range from € 300 to € 5,000 and professional microloans do not exceed € 25,000. The duration of these loans is also quite short, from six months to three years for personal projects and four years maximum for business loans. While microloan has a very positive social impact, it is also very expensive. microloan is still subject to fixed rates that remain high, given high management costs and high risks of non-repayment. They nevertheless make it possible to fight against very precarious social situations and are in this sense a durable solution for creating and maintaining employment.