Zero-interest loan for MEI – Understand

Zero-interest loans for MEIs were an initiative of many Brazilian cities to provide a line of credit to microentrepreneurs and self-employed individuals. Have you heard of this option?

What is the zero-interest loan for MEI?

As mentioned at the beginning of this text, the zero-interest loan for MEI is a line of credit made available to independent and self-employed workers who turn to their city government, stating that they need this money to boost their business, or pay debts related to it.

Most Brazilian cities have this project and each one has some specifications regarding its contracting.

Here, we will explain in general terms, so it is always good to take into account that there may be discrepancies between the conditions of each person.

A relevant point is that this loan is not always really zero interest. In some cases, there is a minimum fee that amounts to less than 1%, but is still charged.

The maximum amount stipulated for this request in some states is R$5,000. However, it's worth checking the amount available in your city.

What are the requirements to apply for a zero-interest loan for MEI?

First of all, this line of credit is intended for individual microentrepreneurs (MEI), self-employed individuals, cooperatives, family farming associations and other activities in which their income comes exclusively from their production.

Some cities include fishing colonies, shellfish gatherers and similar groups, and family farming unions on this list.

To make the request, there is specific documentation for each of these categories.

In the case of MEI, it is necessary:

Personal documents of the individual such as ID, CPF, proof of address;
Certificate of no debts with the federal revenue service;
Certificate of no debts from the Treasury Department;
Proof of MEI;
Annual income statement;
Negative certificate of debts to the federal revenue with CNPJ MEI;
Certificate of no outstanding debts from the Treasury Department with CNPJ MEI.

In the case of CNPJ MEIs that were created in the year of the request, the annual revenue declaration does not count, as there is no history to fill out.

How does the zero-interest loan for MEIs work?

Finally, after submitting all this documentation, a credit analysis is carried out and the applicant receives a positive or negative response regarding their application.

In the meantime, a local credit analyst may contact you to confirm information, provide guidance, and provide any other information that may be needed.

With the documentation complete and the application file approved, the individual microentrepreneur is instructed to open an account and receive the amount in question.

And how do the operating conditions of the zero-interest loan work?

The operational conditions are those prerequisites established before you make your request, referring to the credit limit, installments and payment time.

In the case of a zero-interest loan for MEI, the following conditions are established:

Credit of up to 5 thousand reais, or 15% of your gross income collected in the last year in your role as MEI;
Interest-free, or with minimum interest of less than 1%;
Up to 24 installments;
Deadline of up to 6 months to start paying.

It should be noted, once again, that this information may not be equivalent to all institutions that offer lines of credit for entrepreneurs, and this is just a general basis for how zero-interest loans work.

How is the zero-interest loan payment for MEI made?

Payment is made through a condition pre-established by the financial institution, either by debit from an account or by payment slip.

What are the advantages and disadvantages of this loan?

The advantages of this loan include the possibility of adjusting your accounts, purchasing machinery, and investing in infrastructure, as well as the simplified payment method and the principal, without the intervention of interest, which is usually very high for any financial product offered by banks.

Using the loan wisely

Even though this is a modality developed exclusively to help the entrepreneur's life, non-payment can lead to complications such as a negative CPF.

For this reason, this money needs to be used intelligently, in order to meet a need, always thinking about making it multiply, and the accounts stay balanced, improving the possibility of profit.

So, check out some bonus tips we've put together for you to consider before applying for a zero-interest loan:

List the objectives you had when applying for the loan;
Plan how you will use it and stick to it strictly so you don't get lost along the way;
Don't fall into emotional temptations to buy something other than what you planned for;
Think of your business as the bridge to multiplying your money and that it needs to be in compliance with the law and financial institutions;
If necessary, seek guidance from financial advisors or anyone who understands the subject;
Don't be shy about asking for help whenever you need it, if it's important for your growth.

Conclusion

Generally speaking, we can't predict crises and situations that will take away our livelihood. Therefore, measures like these are very effective in restructuring microentrepreneurs and preventing them from giving up on their careers.

Check the zero-interest loan conditions in your city and the possibility of applying for it.

Good luck in business and good sales!