The banking ban is a real punishment. Indeed, bank bans can no longer take out credit with banks. If you find yourself in this situation and you need a financial boost to restore your finances, consider applying for a micro credit for banned banking. Further editorial at vins-jean-de-monteil.com
But there is some information that you must know before you start and that’s what we are going to talk about.
What is microcredit?
Before going back and forth between the different credit institutions, it would be better first of all to know what a micro-credit really is. It should be noted that microcredit is not much different from conventional credits.
However, it is characterized by a small amount and is often reserved for those excluded from the traditional banking system. There are two types of micro-credit: personal micro-credit to help meet the daily needs of people in precarious situations; and micro-credit professionals to finance micro-entrepreneurs.
Why choose micro-credit?
Despite the few conditions, micro-credit offers many benefits. First, depending on his profile and ability to repay, the applicant can enjoy a loan ranging from 300 USD to 3,000 USD. In some cases considered exceptional, it is even possible to have up to 12,000 USD. Then, this loan is very interesting because the repayment terms are reasonable and can extend up to 5 years. Lastly, rates ranging from 1.5% to 4% are the most attractive on the market.
The banking ban
Now that you know what microcredit is, go to the banking ban. This is a penalty following the issuance of a NSF check or the name repayment of a credit. After this incident, your bank will notify you to the Good Bank and the latter will register you on the central file of checks (FCC) or on the file of the incidents to credits to the individuals (FICP). The consequences of this registration at the Bank of France are quite important since you will not be able to issue checks and you will be obliged to return all the checkbooks in your possession. In addition, you will have great difficulty getting new credits during your registration, because all the banks will have a hard time to trust you.
Settling your situation: the best solution
If you are banned from banking after issuing a bad check, try to regularize your situation as soon as possible. Indeed, there are many ways to pay your creditors by restoring sufficient funds to your account.
Subsequently, inform the beneficiary that he can now be paid. You also have the option of paying your creditor directly. Then ask him to give you the check that you can present to the Bank of France by asking for the cancellation of your name in the file. Note that if you do not try to fix things, the banking ban can last up to 5 years.
Micro-credit solutions for files
If you do not have the means to settle your banking prohibition situation and you go through a financial crisis, you can still apply for a microcredit. However, it should not be done in any way and it is especially important to address the proper body. Here are our few good addresses for a micro-credit for banned banking.
When it comes to micro-credit, ADIE is the first association that comes to mind. The Association for the Right to the Economic Initiative offers financing to carry out your professional projects, to buy your car, insure your vehicle or pass your license.
The micro-credit of ADIE
ADIE’s micro-credit is intended primarily for entrepreneurs who need funding to launch a professional project. Thus, the plaintiff excluded from the classic banking system can get up to 10,000 USD. In addition, depending on the amount borrowed and the profile of the applicant, the reimbursement can range from 6 to 36 months. It is even possible to postpone the first repayment over a maximum of 3 months. As for the rate, it is around 7% which is rather interesting.
You certainly suspect that the micro-credit professional ADIE is not open to everyone. To benefit from it, certain conditions must be fulfilled. First, you must have an interesting and profitable professional project. Then you must be excluded from the banking system and no ordinary bank will accept credit.
In addition, a loved one must agree to be a surety and you must contribute up to 5% of the amount borrowed. It must be admitted that these last conditions often constitute a brake, but it is a way to prove to the creditors that your loved ones believe in your project.
We would like to emphasize that the conditions are quite similar for the request for a personal micro-credit for the purchase of a car for example.
For the request for a micro-credit for forbidden banking with the ADIE, it is necessary:
- A photocopy of your ID
- A pay slip or other proof of income
- Your last 3 personal and professional bank statements
To begin, you must make an appointment by calling one of the ADIE agencies, so you will set a date for your first meeting with an advisor. The moment arrived, you must come with a complete file. Together, you will study the feasibility of your request and you will just have to wait for the agency’s response.
In general, the response does not take longer than 10 days. In the case of validation of the request, funds are released within 48 hours. But the help of the association does not stop there. You will also benefit from a personalized follow – up until the repayment of the entire loan.
The Red Cross
We can say that ADIE’s financial support is devoted to professional uses. On the other hand, if you need a boost for your personal needs, it would be better to go to the Red Cross: a humanitarian aid association that works with many banks.
The micro-credit of the Red Cross
Thanks to this association, people excluded from the banking system will be able to benefit from a loan of 300 USD to 3,000 USD. Even with such a small sum, you can meet your personal needs or fund a socio-professional integration project. As for the refund, it is spread over 6 to 36 months. Finally, the 4% rates are more interesting than those of other associations. Moreover, there are no fees, no deposit, no guarantee.
You can apply for a small credit from the Red Cross if:
- You are excluded from the banking system
- You have a need for money
Moreover, it should be noted that the eligible projects for a request for micro-credit for banned banking of the Red Cross are the purchase of a car or a two-wheelers, the financing of the expenses of health, the purchase of household appliances or furniture and the payment of training costs.
The necessary documents
For your micro-credit request, the following documents must be provided:
- a photocopy of your ID
- proof of residence of less than 3 months (water bill)
- pay slips for the last 3 months
- the last 3 bank statements
- tax notice
- last statement of benefits CAF
You will also need to attach a motivation letter written by the applicant as well as other documents depending on your situation (credit agreement in progress, proof of charges, bank account,…)
To apply for a micro-credit, you must first make an appointment. You can do this online at the Red Cross website by filling out a form. Afterwards, you will be contacted by one of the volunteers of the association.
They will ask you to come with the necessary parts to study your request. They will carry out a budget diagnosis and if it proves conclusive, your file will be sent to a partner bank. If your file is rejected by the bank, the volunteers will direct you to other solutions more adapted to your situation.
Micro-credit between individuals
If no association can help you, you can still apply for a loan between individuals. Thus, there will be less paperwork and you will not have to submit to many conditions as individuals are less demanding. On the other hand, it will be necessary to be careful to avoid falling in the traps of the hustlers.
To apply for a loan safely, prefer your relatives : family members or friends. Indeed, these people know you better and they will also trust you. There are also private lending platforms that connect lenders and borrowers.
To limit the risks, choose the sites that have entered into a partnership with a recognized bank or the platforms that are approved by the Good Bank. Whatever your choice, always make sure to establish a contract that describes the different methods of repaying your micro-credit. This document could save you if there is a dispute later.