Credit for those who need it most

EVEN if the banks have said “No”, you can still get access to loans, via a new type of credit that has been created to help in developing countries.

These microcrédits can offer loans of between e300 and e6,000 at an interest rate varying between 4-6% and repayable over terms between six and 48 months.

They are aimed at those who cannot get bank loans or bank cards: the unemployed, those working part-time or on RSA income support.

There is little red tape, no fees for your dossier, no penalties for early repayment and no insurance costs.

The aim is to allow everyone, no matter their means, to get financial help to improve their lives, and also to put a stop to the “revolving credit” that sees people borrowing on top of other loans until the chances of repaying the debt are slim because the interest rate also increases.

To qualify, you must have been refused traditional credit and the loan must be for a project or for vital expenses: funeral costs, driving lessons, professional fees, medical expenses or agency fees; it is not to pay for a hi-fi or to pay debts. You must have some source of income – enough to allow you to make repayments, even if only a minimal sum.

Agencies such as the Centre d’Action Sociale and family help groups such as Udaf, Familles Rurales, Secours Catholique or the Croix-Rouge all have information packs and can help with setting up if needed.

Requests are checked by a volunteer who will submit it to the partner bank. Find your nearest group at www.france-microcredit.org