A microloan, what does it actually mean?

This loan can be as small as several hundred euros but can often amount to a maximum of 50,000 euros

 Who is eligible for a microloan?

Nowadays we live in a world where everyone has to fight for their own income and in which a permanent contract is a Holy Grail. In this it is becoming more and more customary to want to put your own ideas into work. If you have a good entrepreneurial plan and you want to expand this to your own company, you may be eligible for a microloan. A microloan is a small business loan to give you financial space. 

Who is eligible for a microloan?

A microloan is especially ideal for starting entrepreneurs. If you have a good business plan but are still at the beginning of your career, you usually do not have the ability to build something. For this, a small loan in the form of a microloan offers the solution. You will talk to experienced advisors or coaches who will give you advice on the steps you can take to actually change your dreams. If your plan appeals to a lender, you are eligible for a microloan. However, this is not the only target group for such a loan. Even trading entrepreneurs can be eligible for this, for example when you want to expand or take a different route. It is also possible that you take over part of a company and need a starting credit for it.

What are the conditions for a microloan?

As mentioned earlier, it is important that your desired business financial incentive is less than 50,000 euros, because this is the limit for such a loan. It is also a condition that the planned cases take place in the Netherlands to conclude a microloan in the Netherlands. A closure of a microloan is always accompanied by strict control of different documents and with a BKR assessment. However, it does not always have to be a problem if you have a negative BKR registration. The most important thing to know is that an application for a microloan without BKR testing is not possible.

How does repayment of a microloan in his work?

It’s nice to know how you can get a loan, but it is at least as important to know how you can redeem your debt. As a true entrepreneur, it is of course also important to ask yourself how you will stand when you take out such a loan. A microloan usually has a term of one to ten years. In that time, you will repay a part of the amount each month including accrued interest.

How much is your monthly payment?

What the monthly amount entails depends in the first instance of the borrowed amount and the agreed term. This amount also has everything to do with the specific situation in which you are at the time of application. Think of the history and experience of the entrepreneur, but also the business plan that is submitted when the loan is applied for. One entrepreneur needs more time to start than the other and can therefore also pay a higher amount more quickly. Intermediate extra repayment is almost always possible without penalty, but assume that this will be subject to conditions. Any financial windfall can in that case provide a better financial prospect in the long term.

Economical for the beginning entrepreneur

An additional advantage of microloan, as the name suggests, is that it is always a small loan. This in turn leads to a relatively low debt, which is always pleasant for the plans. It is always exciting and insecure to step into a new adventure, with all the uncertainties associated with it. It would be all the more annoying to start with a big debt, which would make any unfavorable out-of-pocket of the business plan disastrous for the long-term wallet. Exactly why a microloan is such a safe and reliable choice for starting entrepreneurs. When taking out loans it is always wise to ask advice from an expert. That is why it is recommended that you be informed by a financial advisor. This is no different for applying for a microloan. Fortunately, this application is always accompanied by advice from experienced people, so that you can not simply dive into the deep. A failed loan is not beneficial to anyone and this is why all parties try to prevent this.

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