Do you know what social loan is? Have you ever imagined lending or requesting an amount without the intermediation of banks, without the requirement of minimum punctuation or years of documents to prove cash flow and guarantees?

This is an initiative so that nano, micro-entrepreneurs and low-income people can take the potential dreams off the paper through interest-free financing.

To understand more about the subject, check below what this modality is about, know where it came from and know what are the benefits of using social loan as a strategy for your projects.

What is the social loan?

What is the social loan?

It is a microcredit line with the objective of financing low-income nano and micro entrepreneurs projects. Capital is raised through collective financing. The concept consists of the action of people and companies lending money in order to gather a stipulated amount, without any type of financial return.

So, it is a huge help for people who want to put their business plans into action, even if you don’t have the purchasing power to do so. This is a way to believe in economic development and autonomy and to bet on ideas that can generate opportunities.

The social loan does not incur any type of interest on the amount borrowed, that is, you will only pay what is negotiated. Bureaucracy is also considerably reduced by not having long banking processes.

How did this modality come about?

How did this modality come about?

Micro and nano enterprises face numerous difficulties in financing projects or improvements in their businesses. This is due to the long and bureaucratic process of banks in making loans available for capital, high and unsustainable interest rates and conditions that can leave the entrepreneur in the red instead of helping him to leverage an idea.

How to make and get the social loan?

How to make and get the social loan?

To get your credit you must first register on a platform of trust and credibility to mediate the entire process and ensure more security. After that, you request the social loan amount so that your request can be analyzed.

Upon approval, your request is made available for investor support. Ready! Once you have the amount collected, you will pay the loan installments and those who borrowed will receive a refund to apply to new projects or to withdraw.

The requirements for making the social loan may vary depending on the platform. However, the most common ones for requests are:

  • credit money must be used for business purposes;
  • be nano, micro, MEI or low-income person;
  • have more than 12 months of life;
  • have no financial issues.

The conditions also depend on the company applying for the loan. Usually, the term for payment of installments is a minimum of three and a maximum of 12 months.

What are the advantages?

What are the advantages?

In addition to providing credit to entrepreneurs who would hardly be able to obtain financing resources in traditional ways, the collective loan has important benefits for both those who apply and for investors. Check out the main advantages below.

Completely online process

From the application to the payment of the social credit installments, the process is 100% online. You do not need to leave the house to present documents or face lines. Just have a device with internet access and send photos of the vouchers. This allows more security and comfort when requesting your money.

No interest rates

The social loan does not incur any interest rate on the amount borrowed, that is, you only pay for what you receive. This is possible because, as we said, money is raised through collective financing, that is, people and organizations lend resources without receiving any type of financial return for that.

This is, without a doubt, a good deed that strongly benefits this category of enterprises.

Lower default rate

Because it does not have high interest rates or conditions that hinder the process, it is easier for the borrower to comply with the payment of the installments and keep up with the bills, avoiding default.


Some people get headaches just thinking about the long and bureaucratic process of applying for a loan. In the case of social, this does not happen, because access to money is quick and easy. Just go through the credit analysis that gives the borrower’s ability to pay.

How is social lending different from others?

How is social lending different from others?

When analyzing the conditions and advantages of the social loan, we can easily identify the differences from the other types. Bank and traditional credit lines require cash flow vouchers, minimum score scores and, often, guarantees as assets.

All of this can complicate the situation of micro, nano and MEI (Individual Microentrepreneurs), who usually have low income or have limited capital. Thus, the social loan, in addition to being more accessible, is easy to apply for, less bureaucratic and cheaper for the entrepreneur’s pocket.

In addition, it still opens space for investors and people who wish to help the economy grow and leverage projects that have good potential, which makes it a good deed for the whole of society.

The social loan has been the most suitable and advantageous choice for nano and micro enterprises that do not have resources for their projects and improvements and cannot obtain financing through traditional credit models. However, it is necessary to choose a reliable platform and pay attention to payment terms.