The personal microcredit supported is a loan of 300 € to 3 000 € (up to 5 000 € in exceptional cases) repayable over 6 to 36 months (48 months in exceptional cases) benefiting from a rate of moderate interest (3.5% on average) whose objective is to finance small projects (car, license, equipment …) carried by people whose resources do not allow them to claim a consumer credit. Personal microcredit, also called social microcredit, is distinguished from the gift because even if its obtaining depends on the social situation of the borrower (unemployment, precarious contract …), it is a loan that must be repaid. In this, the borrower is empowered and revalorized: it is a relationship of trust that is established and especially autonomy: once the microcredit refunded, the borrower owes nothing “to society”.
The role of the Social Cohesion Fund (FCS), created in 2005, is to provide a guarantee for loans granted to beneficiaries of a personal microcredit. Indeed, the FCS guarantees 50% of personal microcredit for financing life projects. The contribution of the FCS (more than 70 million euros) made it possible to guarantee a total number of 54,000 personal microcredits at 31 December 2013.
In the Ile-de-France region, personal microcredit is essentially developing thanks to a system put in place by the Crédit Municipal de Paris . A network of financial institutions, social services, associations and General Councils has been set up around the Crédit Municipal de Paris to assist applicants and their cases.
The main operators for personal microcredit are referenced on the website www.france-microcredit.org.
Note that Adie offers a personal microcredit for employment when an employee “needs urgent microcredit to access or keep his job” 1 .
The Personal Microcredit Charter
The Committee guidance and monitoring the use of funds (Cosef) FCS managed by the Caisse des Depots et Consignations , adopted April 29, 2009 Principles 2 following:
- The micro-credit secured personal loan is a bank to an individual without access to the “bank credit” granted by a bank, an association or foundation authorized under the Monetary and Financial Code (Article L. 511-6 5 ° ). The microcredit makes it possible to finance a project of life carried by a person who has a capacity of refunding. The laws and regulations relating to consumer loans apply to this credit.
- The borrower is necessarily accompanied by a social or associative actor, who evaluates the project of the borrower and ensures the smooth running of this project. The decision to grant the loan is the responsibility of the lender. The borrower’s support arrangements must be adapted to each case and determined at the time of granting the loan. If a person benefits from several accompaniments, a single referent must be appointed to accompany the loan, which he then ensures with the various accompanying persons.
- The loan is fixed rate, repayable in monthly installments and non-renewable. The ceilings of duration and amount are determined by Cosef. Exemptions of amount and duration have been granted by Cosef for experiments.
- People in a situation of debt distress may be eligible for guaranteed personal microcredit on the basis of a case-by-case assessment.
- For the granting of personal microcredit, it is preferable to avoid the bail request, unless it contributes substantially to the solvency of the borrower.
- With regard to recovery, automatic debit from a bank account is encouraged because it contributes to better banking. Repayment by granting bank overdraft is excluded.
- In case of payment incident and the first unpaid, the lender contacts the borrower and informs the accompanying person as soon as possible so that he can analyze the situation of the borrower. This analysis may lead, if necessary, to a proposal to adjust the terms of repayment of the loan.
- Except in obvious bad faith, the lender is advised not to apply a late penalty.
- Local authorities are invited to focus their efforts on microcredit on the financing of support.
- Loans and support are the subject of reports to analyze the activity, its development and developments.
Typical credit applicant
This is a natural person 3 in difficulty of access to bank credit. The financial situation of the person is precarious (low income). Age and illness can be aggravating factors.
The reasons for choosing a personal microcredit are as follows 3 :
- Difficult access to traditional financial services: either concerning bank accounts (- 2% of the population) or credit (40% of the French population does not have access to credit).
- Difficulty using financial services. The two types of difficulties concern checks (2 million people are registered in the Central Register of Checks) or credits (2 million people registered in the file of personal credit incidents – FICP).
Institutions that provide personal micro
The banking institutions concerned are 3 :
- Deposit Office.
- Municipal Credit of Paris.
- Crédit Coopératif.
- People’s Bank.
- Caisse d’Epargne.
In addition to these institutions, there are micro – credit solidarity web platforms , such as Babyloan, the pioneering site in France in 2008, which in 2011 became “the first European platform for interpersonal solidarity loans” 4 .
Notes and references
- ↑ http://www.adieconnect.fr/financements/microcredit-personnel-for-employment [ archive ]
- ↑ ( fr ) [PDF] Banque de France , ” Annual Report of the Microfinance Observatory 2008 ” [ archive ] , on banque-france.fr (accessed November 10, 2010 )
- ↑ a , b and c http://www.microcreditpersonnel.com/ [ archive ]
- ↑ ” Microcredit on the web ” [ archive ] , on Positions & Media ,