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Microcredit: mini-loan boom

The microcredit sector has recorded a real boom in Italy in terms of requests, disbursements and total amount of transactions concluded. Only in the last three years in Italy have been about 22600 microcredit users. 63 percent obtained a social assistance loan and 37 percent a loan for employment.

The total disbursed, again with reference to the last three years, amounts to over 223 million USD. A respectable figure. Regarding the disbursed, analyzing the data in particular we can infer that 70% of the 223 million of which before, have been used for the creation of work and, only 30% has been destined to social-welfare purposes.

Largest number of credits

Largest number of credits

Therefore, even if the largest number of credits has been granted for social assistance purposes, the largest volumes have been disbursed for employment purposes. This is attributable to the various average amounts granted. Suffice it to say that an average amount disbursed for social assistance purposes is below $ 4500.00, while the average of the loans paid for employment purposes normally exceeds $ 19,000.00.

Another datum of fundamental interest, and for this reason, it is worth noting the exorbitant number of requests compared to the actual payments. The data is very clear: the offer currently present in Italy, although considerably increased in recent years, is not able to satisfy the great demand of the users.

Currently, the microcredit sector in Italy is experiencing a period of expansion and, at the same time, of regulation. In order to analyze the sector and obtain reliable data on its numbers, the National Microcredit Entity has in a sense had to register the microcredit operators in Italy, and then consult the individual operators

The dimensions of the phenomenon in Italy

The dimensions of the phenomenon in Italy

In 2013, 105 microcredit initiatives were registered. The same have disbursed about 10,000 micro-loans for a total amount of 100 million USD. In this way, microcredit in Italy has satisfied less than 42.3% of demand. In fact, many requests were received.

There was no lack of initiatives to spread the culture and knowledge of microcredit and these initiatives must be credited with the growing demand and greater interest in the sector. It is also thanks to projects such as the Capacity Building and Job Counters, that a greater awareness of the existence and usefulness of microcredit has spread.

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