08 May The microcredits to cover the cost of leasing a permanent residence are approved.
The Spanish government has recently approved the requirements and conditions relating to microcredits to cover the cost of leasing a permanent residence for households that are in a situation of social and economic vulnerability as a result of COVID-19.
The microcredits set out in article 9 of the Royal Decree 11/2020, of 31 March, to cover the housing costs of households in situations of social and economic vulnerability have recently been approved by the Spanish government through the Order TMA/378/2020, of 30 April.
These microcredits, which are processed through credit institutions, cover six months of rent, a maximum total amount of €5,400, distributed in €900 per month. The order also provides that these loans can be granted retroactively from 1 April.
The main characteristics of these microcredits are as follows:
- They are granted free of charge and interest;
- The initial repayment period is six years (extendable to ten years);
- A grace period of six months can be agreed.
They can be requested until 30 September 2020 by means of a form published by the government and must be formalised before 31 October 2020. However, the government may extend these deadlines to 30 November and 31 December 2020, respectively.
In order to protect the consumer, the Order has also established that the credit institution may not require the person concerned to purchase any additional products or services.
The requirements of the Order to be eligible for these microcredits are the following:
1.- That the tenant or any of the members of the family unit are affected by a circumstance that implies a reduction in income as a result of the COVID-19 expansion (for example, according to the same Order, they are unemployed, are affected by a Temporary Employment Regulation File (ERTE) or have reduced their working hours to care for other persons).
2.- That the total income of the members of the family unit, in the month prior to the application for the aid, does not reach the limit of five times the Public Indicator of Multiple Effects Income per month (that is, €2,689.20).
3.- That the rental income plus basic expenses and supplies is greater than or equal to 35 percent of the net income received by all members of the family unit. For these purposes, “basic expenses and supplies” shall mean the amount of the cost of the supplies of electricity, gas, heating oil, running water, fixed and mobile telecommunications services and any contributions to the owner’s association, all of them for the permanent residence that must pay the tenant, referring to the period of one month.
Once granted, the credit institution will pay the amount of the loan, corresponding to the six monthly payments, directly to the person or entity that leases the property, having previously informed the holder of the loan. This payment will be made on a monthly basis, unless a different frequency is agreed.
Finally, the Order also establishes that these microcredits will be compatible with any of the rental aids regulated by the National Housing Plan 2018-2021 and, specifically, with those of the aid program to help minimize the economic and social impact of COVID-19 on the leases of permanent residences.
If you have any doubts or queries about these new measures, you can contact us at email@example.com