Microcredits are gaining more and more importance in America as well. From the micro-credit fund America, which was made available by the Federal Ministry of Labor in January, loans in the amount of 5 million USD have been called up so far.
Loans are granted
The loans are granted by LGS Bank. They are intended for start-ups who need not more than 20,000 USD in loans and can not obtain loans in the first market. There is no minimum loan amount even small amounts can be granted. The interest rate is comparatively favorable at 7.5 percent. The term is 3 years.
The micro-credit fund America was endowed with 100 million USD. He secures loan repayments. The maximum loan amount of $ 20,000 is only available to borrowers who have successfully repaid a smaller loan before. In the first attempt, a maximum of 10,000 USD are possible.
Interested parties must contact microfinance institutions,
Which are now present throughout America. These also specify the specifications. In addition to installment loans, final loans and savings loans are also offered. The microfinance institutions – private limited liability companies, as well as cooperatives and other legal forms – also decide on the type of collateral to be provided by the borrower. These are of course not real estate or securities.
Collateral also accepts references
Rather, collateral also accepts references from the personal or business environment of the borrower. The microfinance institutions also help with advice: The projects are, for example, audited and evaluated by management consultants. The LGS bank pays out the loans only on recommendation of the institutes. Insofar as institutions are cooperatively organized, a contribution may be required for membership.
The model of microcredit was originally used in developing countries and goes back to Nobel Peace Prize winner Mohammad Yunus. The principle is to enable destitute people to build up a living wage. In many developing countries, microfinance therefore has not only social, but also economic significance.