Microcredit: What it is, what the rates are and how it works


Have you heard about the microcredit modality? The increase in unemployment caused many to seek a solution by opening their own business, so we prepared this content to learn about the benefits of this type of credit.


What is microcredit and how it works

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Microcredit is a type of loan for micro-entrepreneurs who are looking to expand their business, change establishments, buy equipment, etc. This is a proposal by the Federal Government to encourage microentrepreneurs in order to promote the growth of people’s income.


Who is microcredit for?

  • Companies with gross annual sales of up to $ 200 thousand;
  • Individuals wishing to open the company: hairdressers, salespeople, consultants, artisans, cosmetic resellers.


Interest rate for microcredit

credit loans

Microcredit rates are one of the lowest in the market, as it is a credit line that aims to encourage the growth of small businesses in Brazil, resulting in a social base. As a result, the margin established by law cannot exceed the margin of 4% per month.


Difference between microcredit and personal loan

The main differences between microcredit and personal loans is that the amount released for the first is lower, as it is only intended for those who wish to give a UP in their own business. In addition, microcredit is targeted at some groups of professionals.

The personal loan is a slightly more accessible and simple modality. At Moneyblend Bank, for example, you can do an online personal loan simulation to understand the best scenario for you and complete the entire process online. In short, microcredit is more recommended for small businesses or micro-entrepreneurs. The personal loan is for those who want to hire a larger amount and in a shorter period.


What requirements to hire a microcredit?

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The requirements may vary depending on the bank or financial institution you chose to apply for the loan. Despite this, there are some factors that we can consider:

  1. Be over 18 or legally emancipated;
  2. Be a Legal Entity, individual microentrepreneur or informal entrepreneur;
  3. Pass the socioeconomic analysis of your financial condition (even the situation of the project);
  4. The released amount of the loan depends on the payment capacity, customer need and size of the business;
  5. The loan amount varies according to the institution, but it is possible to find microcredits from $ 300 to $ 21 thousand.


What alternative to microcredit?

If you were unable to get microcredit, choose to take out a personal loan online! In addition to having lower rates when compared to other types of credit, it is possible to complete the entire process online. At Moneyblend Bank it is possible to do a simulation and already check an average of how much you will pay in the total of your loan, according to the number of installments you choose.