Small credit without collateral

Individuals or small companies wishing to start or sustain a business will soon be able to get loans up to 25,000 euros each without guarantees. This so-called “microcredit” will concern loans without collateral for entrepreneurs or even unemployed people who do not have access to bank borrowing and wish to set up their own business.

The Finance Ministry has already submitted to Parliament a draft law for the creation of microcredit foundations supplying such loans in Greece. Although such facilities already exist, the bill aims lay down specific rules and regulations.

It foresees, for example, that microloans can be given to very small businesses, to people seeking to set up a very small business, individuals already running a personal business activity, people wishing to train so as to enter the labor market, as well as citizens belonging to vulnerable social groups.

The system of microloans has been widely utilized in Europe for decades and has been seen to significantly promote self-employment, contribute to the reduction of unemployment and help entrepreneurs maintain economic independence.