- MicroBank, the social bank participated by CaixaBank, has experienced in Aragón in the first half of 2017 a growth of 89 percent over the same period of the previous year in the amount allocated to finance the start-up or business consolidation projects. Specifically, 2.3 million euros have been granted in 207 loans for entrepreneurs.
In turn, the other line of the bank, the financing of personal projects, has registered in the first half of the year the formalization of 876 loans to families, for an amount of 4.8 million euros, 40 percent more than a year before
The bank has registered a significant growth of its activity since its creation in 2007, until reaching for the first time a total loan portfolio for an amount exceeding 1,300 million euros. The achievement of this figure shows the continued commitment of MicroBank to provide financing to people with access difficulties to the traditional credit system, with the dual objective of meeting specific needs of families and contributing to the creation of jobs through the implementation of in progress or consolidation of entrepreneurial projects by entrepreneurs.
Since it began its activity, MicroBank has already granted 673,556 loans to which it has allocated 3,656 million euros. The president of MicroBank, Antonio Vila, has considered that MicroBank has established itself as “one of the main references in microfinance in Europe”, with a model of social banking that has been able to adapt “to the requirements of the reality that surrounds it”.
“The main challenge of our bank has been to combine the social value of the work carried out with sustainability and the capacity to grow. The work aimed at equal access to credit, support for the creation of employment and the promotion of financial inclusion are signs of identity that have distinguished the bank since its inception and that will continue to define our actions in the future, “he said.
The social bank grants one hundred percent of the operations based on the trust in the person and the viability of its project, without asking for or accepting any type of real guarantee.
MicroBank continues to promote products aimed at meeting the needs of those groups that find it more difficult to access financing. Through the support of the more than 5,000 CaixaBank offices and the work carried out in collaboration with the 577 social entities that act as a link between potential customers and the social bank, the entity distributes its products and services with significant growth, year after year, which translates into a positive evolution that affects the sustainability of the project.
Loans resulting from collaboration with social entities increased by 104% in 2016 compared to the previous year, reaching 16.3 million euros granted.
Likewise, MicroBank has the support of some of the main European institutions involved in the promotion of entrepreneurship and microfinance. This is the European Investment Fund (EIF), which assumes a part of the bad loans, and the Development Bank of the Council of Europe (CEB) and the European Investment Bank (EIB), which offer to finance under especially competitive conditions.
MicroBank is the only bank in Spain dedicated exclusively to the financing of projects through microcredits. The entity was a pioneer in its business model and continues to be the one that allocates the most resources to this activity. The entity offers microcredits aimed at entrepreneurs and micro-enterprises to create or consolidate businesses; and family microcredits, which are intended to offer financial support to families with modest incomes who want to develop a specific project.