There has been an increasing use of microloans in Europe during the last years after they were launched in South Asia and Latin America four decades ago. Their objective is to help people in difficult social circumstances to find their way out of unemployment.
In other words, microloans involve financial support for people who encounter difficulties in accessing conventional finance. Microfinance offers them the possibility to obtain very small loans not generally provided by banks in order to support them to start or develop their own small businesses.
In Europe the EU and the European Investment Bank fund the European Progress Microfinance Facility to improve the conditions under which borrowers can get financial help. Therefore, it makes financing available for those who would not otherwise be able to obtain it.
The European Union does not finance the entrepreneurs themselves but enables banks and non-bank financial institutions to grant more loans thanks to guarantees totaling 200 million euros.
You can find the complete press release from the European Parliament website by clicking here.
The European Association of Perfume and Cosmetic Products (APCE) seeks to offer to its members and the society all the information about assistance, aids or measures that could be interesting for them specially when it is related to entrepreneurship.