It is getting easier, getting quick money to face an unforeseen event, or take advantage of an opportunity. There is more to do a search on the Internet, to find a long list of websites where you can apply for a quick credit. The key is to know how to choose the best option, which will probably depend on the interest rate and the credit conditions. Generally, the amount offered by the microloan companies does not exceed 600 euros. And in many cases, this amount is reduced by half if it is the first request, and the return period is usually not greater than 30 days. It is a novel product, nonexistent in traditional banking, which has grown as a result of the crisis and the ease of access to the Internet. According to the Spanish Association of Microloans(AEMIP), the turnover of the fast loans is around 200 million euros. Even in the case of quick and easy loans, not everyone can get the money. In fact, according to the AEMIP, only 50% of applications are approved. Typically, solvency is analyzed through regular income from work or from a pension, so that they function as a payroll advance.
The immediacy of the response and the shortness of the deadlines entail a greater risk, whose counterpart are relatively high interests. If we use the APR, usual reference in the comparison of loans, it shows values higher than 4,000%. Therefore, the microloan companies strive to explain that, by their nature and terms, the APR is not a valid reference for microloans. The competitiveness of the sector is generating a price war. Taking as a reference a loan of 300 euros, the fees at 30 days can range between 84 and 111 euros, representing interest rates between 28% and 37%. The average of the offers compared is 98.27 euros, equivalent to an interest rate of 32.76%.
What is the profile of clients of this type of loans?
According to a study by viloan, it is a predominantly male, middle-aged and salaried public. Specifically, two out of every three people who receive their quick loans are men and the average age is 41 years. 82% of the clients work as employees, compared to 10% with a retirement pension, 5% with other benefits and 3% with self-employed workers. On average, they request a loan of 241 euros and justify an income of 1,310 euros. And as for the place of residence, Madrid and Catalonia account for 41.7% of customers. Fast loans are still a novel product in Spain and there is some distrust in consumers. Against the voices that say that there is no regulation for microloans, these are governed by the regulations on consumer credit contracts and on remote marketing of financial services for consumers. In addition, AEMIP was created two years ago, that today groups more than half of the companies in the sector. This entity has promoted the adoption of acode of good practices, to give greater protection to customers. So fromCréditoSí we insist: if you are going to request a mini-credit, do it in a company attached to AEMIP.