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The outfit will charge 4% on all microfinance loans to €25,000, Microlux said in a press release on 24 June.

It had been charging an annual interest rate of 7%-9%.

The funds can be used to finance starting a company or a job search. The company also said it had expanded its network of volunteer advisers who support entrepreneurs and people seeking to restart their professional activity.

Wednesday’s announcement said the lowered interest rate was introduced on 15 June and will be available for a year. Repayments can be delayed “up to 6 months.”

Microlux issues small business loans up to €25,000 and provides coaching to entrepreneurs who, the outfit has previously said, “do not have access to ‘traditional’ bank loans”.

According to its 2019 annual report, Microlux lent a total of €461,000 last year, with an average loan amount of €13,500 and a 12% default rate.