The evolution of mini-credits, from Bangladesh to the line of credit
The origin of the microloans is in Bangladesh
Muhammad Yunus was the inventor of microcredits, an idea that earned him the Nobel Peace Prize. This Bangladeshi realized that women bamboo furniture manufacturers from the poorest neighborhoods of their city had to accept loans from usurers with bad conditions to pay their suppliers. Therefore, decided to make small loans with much more favorable conditions, which allowed them to achieve greater benefits in their business. Currently, the Grameen Bank has lent money to more than 6.1 million people , especially poor women.
The ‘payday loan’ was the first Anglo-Saxon adaptation
The first to adopt these products were the Anglo-Saxon countries. Given the quality of the former colony of Bangladesh, which is still a member of the Commonwealth, its expansion to the western world could not come through anywhere other than the United Kingdom. In this country, as well as in the United States, mini-credits are known as ” payday loans “, since they were created as an advance payment day . In this way, they were used to eliminate solvency months of excessive spending or in which it would be necessary to assume a payment more bulky than expected.
The arrival in Spain of mini-credits in 2008
The minicréditos took longer to reach Spain, but its success was resounding. Its landing coincided with the crisis of 2008, when Spanish financial institutions, especially banks, closed the credit tap. Therefore, many Spanish families decided to go to these products in search of the financing they needed .
Such has been the success of mini-credits in our country that, fruit of the enormous competition that exists between entities, we can find offers of the most favorable if we know the market. It is the case of those companies of free mini loans that allow us to get up to 300 euros without having to return anything more than the borrowed money, that is to say 0% APR, like the following:
|Loan||Maximum amount||Cost / € 100 to 30 days||Term||I’m interested|
|Minicrédito Vivus||Up to € 300 new customers||Free||Up to 30 days||
|Dineo Minicredit||Up to € 300 new customers||Free||Up to 30 days||
|Ferratum Minicredit||Up to € 300 new customers||Free||Up to 30 days||
In the event that we want to take advantage of this promotion, we will have to comply with the conditions set by the companies that offer them to us. In the case of the three products of the previous table, we will have to be new clients of the entity and reimburse the money in 30 days . For future loans, we will have to assume a 1.1% cost.
Lines of credit for individuals on the horizon
Currently, many entities that have traditionally offered mini-credits are promoting a new product. It is about credit lines for individuals. These loans, inspired by the lines of credit that were created for the self-employed, function as a financial cushion from which we can extract money and only pay for that cash we use. One advantage of the credit lines as opposed to those offered by the banks is that, in case we do not extract any money, we will not have to pay anything, while the banks will charge us a commission for not disposition.
This is the review of the evolution of mini-credits, which are about to turn fifty years and which promises a promising future. Whenever we have the need for a cash injection quickly, without links and with zero commissions, mini-credits can be the answer.