How to Qualify for a Microloan

An experienced international banker, Julio M. Herrera Velutini serves as chairman of a leading Puerto Rico-based financial institution. Through his business operations, Julio Herrera Velutini aims to offer valuable crediting and financing options to Latin American communities by promoting microfinance options, such as microloans.

Most lenders adhere to a set of criteria when issuing a microloan. For instance, they may require their clients to be at least 21 years old (though some organizations may offer financing options to persons as young as 18). The loan applicant must apply for the loan as the sole owner of a business or with co-borrowers or co-owners, and the funds lent must be used for business purposes.

To obtain a microloan, applicants don’t necessarily have to have a perfect credit record, although recent bankruptcies, outstanding liens, and delinquent payments will typically lead to a loan application being rejected. Microfinance companies usually assess their clients’ past business history and future business plans when determining whether they will issue them a microloan.