Credits and Their Alternative
The OCI credits , granted by the Official Credit Institute, are one of the most famous and important financing routes in the business world, with tens of billions borrowed each year. However, they are not always the best option for all cases. In this article we put into the balance what are the advantages and what the disadvantages of these loans, and we will see that the latter weigh more in most cases.
Advantages of OCI credits
- The interest rates on these loans are usually lower than those found on the market. This is so because, being governed by a public institution such as the OCI, all figures for commissions and interests are standardized, always ‘down’ to make it easier for professionals to access them, although this is not always the case. occur, as we will see later.
- These credits usually arrive through specific lines , such as OCI, which make each of them more flexible and better adapted to certain business profiles.
Disadvantages of OCI credits
- Excessive paperwork : the documents to be delivered are very numerous, either in the form of reports, projects, forms, certificates.
- Processing through banks : although the OCI is a public institution, banks are responsible for processing applications, so these are a first filter in the granting or not of these loans.
- The amounts to be lent are very high : although the minimum amount that can be granted varies according to each line, the average amount lent in 2014 was more than € 70,000, a figure that is certainly high for the majority of self-employed and small SMEs size.
- Discarded financing to individuals : OCI loans are practically only aimed at companies or professionals, with the only exception of those individuals who request an OCI loan to finance works that occur in the private home.
- Government assignation : although it is an institution that has survived the different governments since its creation in 1993, the truth is that some support it more than others. And this can be seen in the allocations of resources, in the restrictions in the form of requirements that are established from one legislature to another …
- Denied applications to those who can not demonstrate an unblemished credit history : in other words, those who are part of the lists of Spanish defaulters, such as ASNEF, RAI, Cirbe or FIJ, among others, find it impossible to avail themselves of a line of credit of the OCI
- Very long repayment terms : the loans granted by the OCI can normally be repaid within a period of between 1 and 20 years. If we add the associated costs in each of these monthly payments, the total amount to be returned rises considerably, even with lower interest rates than those of the market. And it is that the rule of “more term, more total expense” is also fulfilled in the OCI credits.
Alternatives to OCI
Requesting a loan at the OCI is a decision of great importance, which should be the result of a very calculated business strategy, which greatly delays the process and which involves many denials by this institution. Therefore, if you are looking for a quick loan , it is better to start other means of financing . And since everything that has to do with the Public Administration requires very long deadlines and enormous paperwork, subsidies from other institutions such as City Halls or Autonomous Communities should also be discarded at this point.
In this sense, the best alternative for moderate amounts are the online mini-credits , where you can have access to lower amounts but of almost immediate concession. LoninLoan offers minipréstans of a maximum of € 750 to individuals and professionals, to return within 30 days at the most.
Banks and traditional s financial institutions could be another alternative to the OCI credits, but also are discarded not only by the slow processing but also because they close the door to those who are on lists of defaulters as ASNEF, those who can not get a guarantee or those who do not have a fixed payroll. However, this also does not affect the undocumented credits of LoninLoan , since the bureaucracy is so scarce that the entire request can be made online without the need to submit unnecessary documents. And that facilitates access to financing for practically the entire population, as shown by our acceptance rate of 90.79%.
Therefore, if what you are looking for is a loan that is not very high, to be repaid quickly and with hardly any paperwork, the best alternative to OCI credits is LoninLoan’s online mini-credits.