Microcredit is a credit extended by private organizations or individuals in the form of small loans to people who do not have access to traditional financial services. Micro-credit allows each year to finance projects around the world, on a local or international scale.
This system makes it possible to move away from the monopoly of banking institutions and conventional investors, whose terms are often more restrictive.
But what exactly is this type of credit? What can it do for Canadian consumers?
The origins of microcredit
Originally, micro-credit was primarily intended to invest money to help the poorest develop a project or invest in their future. Perceived as a form of charity, the micro-credit system has developed since the early 2000s, becoming a credit system widely used in emerging countries. It is estimated that 83% of such loans are destined for countries in Asia or the Pacific.
Beyond being a simple economic investment for the lender, the micro-credit has more of a human value. At the beginning of his life he focused on local development for people with few resources to be self-financing. On the side of the lenders, this system has offered to private individuals who do not necessarily have huge resources, to make investments in various local projects where far away from home.
In emerging countries, micro-credit is a tool to combat gender inequality and the difficult treatment of women in some countries. Thus, beneficiaries are mostly women (about 75% in 2011): this is also explained by the fact that they are generally regarded as more attractive beneficiaries than men.
Micro-credit: evolutions of this personal payday loan
However, since the emergence of microcredit , it has evolved greatly. Indeed, it is no longer used only for emerging countries, but it is democratized around the world, for different purposes. In Canada and many Western countries, micro-credit is a personal payday loan that is smaller than a conventional cash injection. The advantage of this type of loan is that it is easier to acquire and is not subject to the same conditions of acceptance as loans made by a conventional banking institution.
How can I get a microloan?
This type of loan is generally for people who have no or no access to traditional financial services or who can not take out a bank loan because of a bad credit rating. The interest for consumers is to avoid being stuck personally or professionally with the possibility of obtaining a contribution of money.
Loans NCR adheres to the principles of microcredit by granting loans that are fast and adapted to the needs of consumers. That’s why our personal payday loans respond to an urgent need for money or an unexpected expense. Our priority is to offer a solution to those who have no other choice, while they deserve full credit for a personal payday loan.
Microcredit is therefore a very positive and accessible principle, to which all investors and all applicants can have access. The priority of NCR Loans is to meet your money needs so you can move forward with a little financial help! Contact one of our advisors or apply online!