Micro Enterprises Crediting. Practical Aspects

In a market economy, the credit assures a transfer of repayable value for a limited period of time in exchange for a price that is referred to as interest on credit. The role of the credit is to generate liquidity flows for its beneficiary in such a way as to enable him, on the one hand, to honour his obligations to the bank, namely the payment of the monthly rate of credit, interest, bank commissions as well as the insurance of the contracted loan and on the other hand to obtain a profit. In order to benefit from loans, micro-enterprises are analyzed by banks through methods, policies, tools and techniques of each bank. The credit decision will be taken by the bank only after it has ensured that potential borrowers are in line with the rules and lending regulations of the lending bank.