Microcredit Opportunity Starting at 100k for Entrepreneurs

Caixa Econômica Federal announced the reopening of the microcredit line called Caixa Repasse, aimed at Individual Entrepreneurs and Individual Microentrepreneurs (MEI).

The main objective of this initiative is to facilitate access to credit and boost the Brazilian economy by the end of 2023. With the allocation of R$300 million for this modality this year, Caixa intends to benefit around 160 thousand entrepreneurs.

This program offers the opportunity to finance various business-related expenses, such as paying suppliers, employee salaries, water, electricity and rent bills, purchasing raw materials and goods for resale, among other business needs.

Requirements for Access to Microcredit

The requirements to access Caixa Repasse vary depending on the type of entrepreneur. For Individual Entrepreneurs, it is necessary to have less than R$1,000 in bank debts until January 31, 2022 (excluding housing loans and unused limits).

In addition, you must have an updated registration with CAIXA Tem and have a CAIXA Tem Savings Account.

Approval is subject to a credit analysis. Individual Microentrepreneurs (MEI) must have at least 12 months of activity/establishment as an MEI, an annual turnover of less than R$$ 81 thousand and less than R$$ 3 thousand in bank debts up to the same date. In addition, it is necessary to have a CAIXA Legal Entity Account and to be approved in the credit analysis.

Loan Application Process and Amount

An important feature of Caixa Repasse is that the application process for Individual Entrepreneurs is digital, allowing interested parties to apply for the loan directly through CAIXA Tem, making access to credit simpler and more convenient. Individual Microentrepreneurs (MEI) must apply at CAIXA branches.

The loan amounts offered by Caixa Repasse have a minimum value of R$100,000, with interest rates starting at R$0.691 per month and reaching up to R$41 per month, depending on the viability of the project. The repayment period is 48 installments, with the first installment due only six months after the loan is signed.

Caixa Repasse and the SIM Digital Program

It is important to note that Caixa Repasse differs from the SIM Digital program, launched in 2022, which offered microloans from R$1,300 to R$1,000 with low interest, even for those who had up to R$1,000 in debt. SIM Digital was closed in 2023 due to a high default rate, with 87% of the loans unpaid.

In contrast, Caixa Repasse analyzes the viability of entrepreneurs' projects and aims primarily to expand the productive capacity of their businesses. In addition, this type of credit can be used to finance improvements in cash flow, such as working capital, and to purchase equipment, furniture, tools and other items necessary for economic activity.

Technical Guidance and Monitoring

One of Caixa Repasse's focuses is the importance of technical support to ensure the success of loans.

Caixa CEO Rita Serrano stressed that microcredit should be seen as a public policy, not just a financial transaction. This means that the program is not limited to providing credit, but also offers technical guidance to entrepreneurs, contributing to the success of their businesses.

Regionalization of Credit and Economic Impact

Rita Serrano, during the announcement of the reopening of Caixa Repasse, highlighted that the measure is important to regionalize credit, that is, to bring financing opportunities to different regions of Brazil. She also emphasized the importance of personalized service and guidance to borrowers.

Vice President Geraldo Alckmin, present at the event, considered the initiative as an incentive for small entrepreneurs to grow and generate income, highlighting Caixa as an important development instrument.

In turn, the president of the Brazilian Association of Microcredit and Microfinance Operators (Abcred), Isabel Baggio, highlighted the low default rate of Oriented Productive Microcredit (MPO), emphasizing that assisted and focused credit has been successful, helping people to manage their finances responsibly.

In General Context

Caixa Econômica Federal is relaunching the microcredit line Caixa Repasse, allocating R$1.5 billion to help microentrepreneurs expand their businesses. With loans starting at R$1.5 billion, interest starting at R$0.69 billion per month, and technical guidance, this initiative seeks to boost the Brazilian economy and strengthen the microentrepreneurship sector by the end of 2023.

It is a valuable opportunity for entrepreneurs who wish to invest in their businesses and contribute to the country's economic growth. For more information and to apply for credit, interested parties should contact the institutions listed on the website of the Brazilian Association of Microcredit and Microfinance Operators (Abcred).

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