Micro credit : social loan for works, emergency relief and exceptional help
The loan provides support to families with limited income. They can take the form of low-interest consumer credit or exceptional financial assistance. Here is the list of microcredit and the conditions to apply for it.
Who can benefit from social loans?
The loan can help you keep your head out of the water with dignity. If you need to renovate your home, renew your furniture or get an emergency loan, contact a social worker.
He will help you to build your application file and will bring it to the financial aid committee.
The family quotient
Each departmental CAF follows its own policy. However, all CAFs are based on the applicants’ family quotient.
For example in Ardèche, CAF equipment loan can be granted to families whose family quotient does not exceed € 720. In Calvados, the CAF work loan is intended for households whose family quotient does not exceed 620 €.
Find here our complete file on all CAF loans to which you can be entitled!
Aid for families in difficulty is only granted to beneficiaries receiving benefits from the family allowance fund.
CAF takes repayments related to the credit granted on the benefits it pays.
Emergency social loan and relief
1. The help of the CAF
There is a difference between an emergency social loan and relief: relief is a non-repayable financial aid, while the social loan is equivalent to a low-interest consumer loan.
Access to these supports is subject to a request made by a social worker.
Another loan from CAF: the preventive loan .
Do not be mistaken !
The confusion is easy to do, especially on the site of the CAF of Calvados where the loan of honor and the emergency help are on the same page.
If you need an emergency loan, contact a social worker to explain the difference.
Who can benefit ?
CAF relief is provided to people with at least one dependent child, knowing that each department has its own definition of dependent child.
In general, when a family has a child under the age of 16, the child must be enrolled in school to qualify for CAF financial support.
If it is older, the household’s resources must not exceed a ceiling based on the hourly SMIC (10 € gross).
2. Emergency Social Loan
Each departmental allocation fund may decide on exceptional financial assistance, awarded under certain circumstances.
For example, CAF des Deux-Sèvres offers exceptional assistance when a family is facing a disability or the death of a child. Its amount is set by the social action commission according to various criteria.
This article may interest you: CIF loan for unpaid rents.
CAF provides for a number of aids:
- The loan for improvement works.
- Help works related to a child’s disability.
- The loan for essential works.
- The loan for the purchase of a caravan.
1. The loan for improvement works
The Family Allowance Fund can provide you with home improvement assistance if you own or gain ownership of the property.
You are the owner when your principal residence belongs to you, without mortgage.
You are a homeowner when you have bought your principal residence and you continue to pay off your home loan.
In both cases, the family allowance fund allows you to do some improvement work.
Get help to improve your habitat
While the terms of access to the CAF work loan are different from one fund to another, they still have some similarities.
In particular, you must request a quote, which must be prepared by a registered professional and declared. This quote can be done free of charge.
Departmental CAFs employ people specialized in housing, whose role will be to assess the need for the required work.
2. Assistance to the improvement of the habitat related to the handicap of a child
If you need to carry out work in your main residence to allow accessibility to a disabled person, you can also turn to the National Agency for the Improvement of Habitat (ANAH).
If the disabled person is a child, the family allowance fund can give you a loan.
This can go up to more than 4,500 € and come in addition to other bank loans. This is particularly the case in Calvados.
3. The works loan for essential works
Departmental Family Allowance Funds also provide low-interest loans to make your housing decent.
These loans must allow the installation or adaptation of the heating system and the improvement of the sanitary and electrical equipment.
Some departments also allow work on insulation or allowing the creation of an additional room.
4. The loan for the purchase of a caravan
Some Family Allowance Funds also provide loans for the purchase or refurbishment of caravans.
Who is this financial aid for?
For example, the CAF du Finistère specifies that this loan is intended primarily for Travelers.
The latter must be beneficiaries of the CAF at the time of their loan application. They must also be able to continue to collect benefits for the duration of the loan repayment.
The caravan must be used as the principal residence for the applicant and his family.
The loan is means-tested and the applicant must not be in debt distress.
Funding is more readily available when children are born in the 3 years preceding the application, or when it is necessary for the family to separate.
What can you buy with this caravan loan?
The sum can be used for the purchase of a new or used caravan, or for its rehabilitation.
The funds are not paid directly to the beneficiaries, but to the seller.
The seller must be a licensed professional and must first produce a quote. Once the transaction has been concluded, the beneficiary must provide proof of purchase to CAF.
value of the loan
The loan amount for the purchase or renovation of a caravan depends on each departmental family allowance fund. In Finistère, it is around € 5,000 and is repaid without interest.
The loan of honor: a loan with a low-interest rate
The objective of the honor loan
The CAF loan of honor may take the form of a zero-interest loan or a consumer loan at a rate often below 1%.
Since the sum lent is most often used for professional integration, there is no interest.
It is thus possible to buy a car, to pass a driver’s license or to have an existing vehicle repaired from the moment it is used to go to a place of training or work.
I advise you to read this article: get a loan of honor to buy a car.
The repayment terms
The finance committee of each family allowance fund determines the amount to be allocated to each, depending on its situation.
Refunds are paid out of the benefits paid, which avoids defaults. Be careful therefore: to ask for exceptional help from the CAF, is also to collect less benefits.
The equipment loan
A really cheap consumer loan
All departmental family allowance funds offer a loan of equipment to buy furniture or appliances.
Monthly repayments are spread over a period generally between 25 and 32 months.
CAF sets a minimum amount for monthly payments. In Ardèche for example, the monthly repayment is 15 € minimum.
In order to help the beneficiary to build up cash, the first monthly payment is deducted from his family allowances only 2 months after the payment of the credit amount.
What can you buy with a loan?
This loan covers only essential household appliances, including the washing machine, the oven and the refrigerator.
As far as furnishings are concerned, the concept of basic necessities includes a table and chairs, a mattress and box spring or a storage cupboard.
When a child is enrolled in college or high school, the CAF Loan Equipment can also be used to purchase a computer and a printer.
Each departmental CAF sets a schedule of loan amounts.
Operation of the Equipment Loan
The steps to follow
To obtain a loan of equipment from the CAF, you must go to the stores participating in the operation and ask for a quote that you will bring later to the social worker who accompanies you in this process.
Once the information is transmitted to the family allowance fund, it determines a maximum annual loan amount that can be adjusted according to the number of births in the family.
If your loan is accepted, you will receive a proof to present at the store’s cash desk.
You must then settle your share in cash, generally between 10% and 20% of the amount of capital equipment purchased. You can then quietly leave with the equipment.
The balance will be paid by the family allowance fund directly to the merchant.
Find here the list of partner stores.