Rémy Jacob, president of Microlux, is launching an urgent appeal in order to help micro-entrepreneurs normally excluded from normal banking circuits Microlux

Rémy Jacob, president of Microlux, is launching an urgent appeal in order to help micro-entrepreneurs normally excluded from normal banking circuits Microlux

Accustomed to supporting--through microcredit--micro-entrepreneurs not in the banking customer circuit, Microlux hopes to develop its range of products even better in order to help new candidates take the plunge, despite the uncertain economy.

“With the health crisis, some people are almost forced to create their own business to find a job. But they hesitate to take the plunge for fear of not being able to ensure the repayment of a loan," explains Rémy Jacob, president of the young institution.

His idea is to introduce an "honour loan" amongst the Microlux tools available. This would mean a loan on a portion of the total credit granted would benefit from a 0% rate, the repayment of which could be deferred for a maximum 24 months.

"This system of honour loans exists in particular for student loans which can be repaid at the end of studies," Jacob explains. 

He adds that Microlux, since its creation in 2016, had been considering introducing a 0% loan to better support initiatives. "In the current context, there is now an urgent need to do so,” he says. “We are seeing requests coming in.”

But in order to achieve this, it’s also necessary to create a guarantee fund that will cover these loans. They cannot be covered by European funds, as are the institution's traditional interest-bearing loans.

The president is therefore appealing to the generosity of Luxembourgers, citizens or large institutions in order to be able to set up this fund. "According to our current estimates, we will need an amount between €150,000 and €250,000," he says.

The fund will be set up in the form of donations. For interested institutions, Jacob plans to discuss with them on a case-by-case basis. For individual donations, he is considering a passage through the covid-19 fund launched by the Fondation de Luxembourg in April 2020 to fight the pandemic. “It offers transparency and ensures the tax deductibility of donations,” he explains.

Those interested can contact Microlux by e-mail ([email protected]) or by phone (+352 45 68 68 75).

This article was originally published in French on Paperjam.lu and has been translated and edited for Delano.