18 Months Smart Micro Credit

180 micro-loans in the area of Berlin-Brandenburg awarded micro credit fund Germany forward one and a half years, in December 2010, micro credit was founded in smart specifically for granting of micro-credits in the Berlin-Brandenburg area. Thus, it belongs to the currently 60 accredited microfinance institutions (MFIS), awarded throughout Germany of microloans to entrepreneurs and small businesses. Nationwide, about 4 million entrepreneurs can be counted to this target group who have difficulty with their banks to obtain necessary capital in the range up to 20,000 euros. Just these micro – and small enterprises are in but most of the new jobs created. To close the equity gap the Federal Government launched the micro credit fund Germany in January 2010 with a volume of 100 million. From this Fund, the accredited microfinance micro loans to entrepreneurs and small businesses may be sufficient. What a microloan is anyone who has a corporate goal in Germany, can a credit not to exceed 10,000 euros at apply for an MFI. This decides on lending, takes over the service during the term, and shall also be liable for the loan.

The contract and payment and repayment takes place in the background via the GLS Bank. The repayment takes place usually in installments, due in some cases (E.g. for contract pre-financing). The maximum duration is 36 months; free special redemptions are possible at any time. Subsequent loans can be requested after a successful repayment. Their maximum amounts to 15,000 euro and then 20,000 euro first. The interest rate amounting to 8.9 percent effective by the Federal Government set and the programme in the long term alive to keep. There are no additional costs or fees collected.

As collateral, guarantees in the private sector have been established. Micro-credit smart about smart micro-credit has turned up very wide and served borrowers independently by business phase, industry or origin. Which were almost one-third up Today loans 180 founded new existences. People with an immigrant background were given a three quarter of the loans. Overall, more than 180 loans were granted for business. Thus, microcredit is smart to the fastest-growing microfinance institution in Germany. What is special about smart micro credit as compared to banks is that here the person and their projects in the credit decision in the first place. Lending takes place after an extensive acquaintance by experienced in-house consultants or through an external network of qualified consultants. Also, each borrower is maintained during the entire period using a free monitoring system.

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