The National Monetary Council (CMN) approved some changes in Brazilian microcredit in March this year (resolution No. 4,713). They are responsible for formulating the currency and credit policy, aiming at the stability and the economic and social development of the country. The approved changes mainly concern the loan limits and conditions to become a borrower.
The resolution is part of the National Oriented Productive Microcredit Program (PNMPO), aimed at releasing credit only for small entrepreneurs. It should take effect from June 26 and this will also bring changes in the microcredit that Good Credit does.
Microcredit programs may be cheaper to process and access to credit may increase. It remains to be seen whether these measures will actually lead to an increase in financial inclusion. This does not mean only access, but access to information so that the entrepreneur does not fall into “financial traps”.
What were the changes in microcredit?
CMN decided to increase the maximum limit of each loan from R $ 15 thousand to R $ 21 thousand. In addition, I also raise the debt ceiling. Before, the entrepreneur could have a debt of up to R $ 40 thousand to make a new loan. With the new resolution, this debt can reach up to R $ 80 thousand.
Another recent change has to do with those who can make financing in the same way as productive microcredit, whether individuals or companies. Before the company could have annual gross revenue of up to R $ 120 thousand to fit the modality, today that same revenue can be up to R $ 200 thousand per year.
The idea is to modernize. It was decided that the release of the credit is possible with just a face-to-face visit by the client to the lending institution. The following contacts can be made digitally. The digital signature was also authorized in microcredit contracts.
In this modality, the only way to use credit for consumption is in the case of purchasing assisted technology equipment for people with disabilities. And the amount used in this cannot exceed 20% of the total amount.
This resolution is part of the Central Bank’s strategy to boost access to productive microcredit as a way to expand financial inclusion in Brazil.
What remains the same?
According to the legislation in force (Resolution Nº 4000), all banks must allocate 2% of everything they collect with their clients for microcredit operations. It is called the interbank deposit linked to microfinance operations (DIM).
The maximum interest rate that can be charged in this modality is 4% per month. The maximum amount of the credit opening fee is up to 3% of the loan amount.
How does Good Credit work?
Good Credit is a lending platform between people whose main objective is to bring investment to low-income people. Interest rates range from zero to 1% per month. We were inspired by the PNMPO to create the company’s operating policies, but it is not he who dictates how the operations take place. The changes in Brazilian microcredit will mainly affect the maximum loan limit, which will be R $ 21 thousand. With respect to changes in gross revenue and indebtedness, we will be flexible. Loans are made on a case-by-case basis.
Among other issues, we take into account gender, race and / or the sexual orientation of the policyholder to decide in favor of those who have fewer opportunities. Our values do not change: we will continue to offer cheap, unbureaucratic and humanized loans to those who need it most. A positive point that actually makes microcredit more accessible is the possibility of signing digital contracts. The possibility of monitoring the development of the project financed by digital means is also beneficial.
As stated, loans are made in a personalized way at Good Credit, according to the needs and capabilities of the entrepreneurs. To take a loan with Good Credit you must have at least 2 years of experience in entrepreneurship. It must also be indicated by a platform partner organization that works with entrepreneurial training.
After that, the entrepreneur must answer a financial profile questionnaire and have a satisfactory evaluation. Then you must send documents that prove the cash flow of the business for the past three months. Then he creates the collective fundraising campaign and individuals from all over Brazil can become his investors in the projects with values starting at R $ 25.