Do microcredits generate employment?

Fine Bank is the social bank fully owned by Agree Bank dedicated to the granting of loans to entrepreneurs. According to the report on the impact of micro-credits prepared by the Institute for Social Innovation of the ESADE School of Business, since the creation of Fine Bank in 2007, 155,000 jobs have been created. This report has been made among Fine Bank loan beneficiaries in recent years.

 

What results are extracted from this report?

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During 2015, 21,321 jobs were created through the microcredits granted by Fine Bank. Thanks to the possibility of having this financing, the creation of employment is facilitated both in processes of constitution of new businesses or expanding the existing ones.

The most relevant data extracted from the study are the following:

  • 43% of entrepreneurs plan to hire a worker in the next 12 months.
  • 69% of microcredit beneficiaries say their business is going well or very well, and most expect growth in the coming months.
  • The entrepreneur’s profile responds to a freelancer, who had not previously run a business and who, with the creation of the business, contributed 65% to the family budget.

In addition, 93% of those entrepreneurs who obtained financing with Fine Bank continue to work in their own business and 29% of these have hired a worker.

What loans does Fine Bank offer for entrepreneurs?

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Fine Bank offers differentiated loans depending on the purpose: for entrepreneurs and businesses, personal and family, eco loans and for social businesses. We will focus on seeing the characteristics of loans for entrepreneurs and businesses:

Within the section of microcredits for entrepreneurs and businesses, we find that Fine Bank offers two different ones: microcredit for entrepreneurs and social microcredit.

 

Entrepreneurs and business microcredit

The microcredit for entrepreneurs and businesses is aimed at those who want to undertake or freelancers whose annual income is less than $ 60,000. They can also apply for microenterprises with less than 10 employees with a turnover equal to or greater than $ 2,000,000 per year.

Characteristics:

  • Maximum amount: $ 25,000
  • Up to 100% of the project
  • Fixed interest rate during the entire life of the operation
  • Repayment term: 6 years (without lack or with up to 6 months of lack)
  • No real guarantee

The main requirement will be to present the Business Plan with the financing needs.

 

Social microcredit

The social microcredit is aimed at entrepreneurs who already have the advice of one of the Fine Bank collaborating entities.

Characteristics:

  • Maximum amount: $ 25,000
  • Up to 95% of the project
  • Fixed interest rate during the entire life of the operation
  • Repayment term: 6 years (without lack or with up to 6 months of lack)
  • No real guarantee

One of the requirements will be the presentation of a Business Plan and a viability report of the business project issued by a Fine Bank collaborating entity.

 

Which loan suits you best?

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If you are thinking of reforming your home, giving your business a change of look, or, you have to face any unexpected expenses this month, in Best Bank we help you find (and find) the loan that best suits your needs. We do it through a completely free study and without any commitment.

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