Microfinance institutions that meet MicroCredit Enterprises’ eligibility criteria and have reviewed the standard credit agreement are encouraged to apply for a loan or guarantee online.
Application Timeline Typically, MicroCredit Enterprises seeks to make a decision on an application within two months of receiving the complete due diligence package from an MFI. The length of time between application and disbursement of financing depends on a number of factors. MicroCredit Enterprises can provide an estimated disbursement date when a loan application is submitted.
Required Information The following minimum information is required to conduct due diligence on MFI loan applicants:
- Audited financial statements for the previous three years
- Year-to-date unaudited financial statements
- Chart of Accounts
- Table showing number of borrowers, loans, savers, offices, employees, and loan officers for previous three years and monthly data for the most recent twelve months
- Percent of current clients that are women, live in rural areas, and deeply impoverished (living on $2 per day or less or below the national poverty line) for the previous three years and current year to date
- Maturity analysis for assets and liabilities as of most recent month (Present assets and liabilities maturing in 0-30 days, 31-90 days, 91-180 days, 181-365 days, 1-2 years, and greater than 2 years)
- Currency analysis for assets and liabilities (present assets and liabilities by currency)
- Three-year financial projections
- Three-year business plan that demonstrates operational self-sufficiency or the ability to achieve operational self-sufficiency
- All by-laws, legal registration, articles of incorporation and/or charter documents
- Shareholder ownership percentages (or voting control percentages for NGO)
- External ratings or evaluations
- Summary report of your management information systems (MIS)
- Description of products and services (including lending methodology & interest rates)
- Résumés, curricula vitae, or biographies for key management and board of directors
- Organizational chart as approved by the Board of Directors
- If MFI is affiliated with an international NGO, contact information for the person to whom CEO reports at the international NGO
- Copies of the Minutes of the two most recent Board of Directors meetings
- Data showing comparative market standings with other national MFIs
- List of major donors
- Policies for loan loss reserve
- Policies for writing off loans
- Policies for refinancing or re-aging loans
- Policies for managing foreign exchange risk
- Policies and procedures for internal controls to prevent fraud (including controls for cash handled by loan officers), or internal control and/or internal audit manuals
- Credit policies and/or credit manuals, operating and risk management manuals
- HR manual
- Accounting manual
In addition, we will require a list of current debt obligations, including the following information for each debt obligation:
- Lender;
- Original loan amount and disbursal date;
- Outstanding balance:
- Frequency of payments;
- Final repayment date;
- Currency denomination;
- Interest rate (please indicate if fixed or variable);
- Commission or fee;
- Financial Covenants;
- Seniority, and
- Guarantee or collateral.
Also, please provide the following loan portfolio reports:
- Number of loans and value of gross portfolio by branch at year-end for past three years and monthly data for the most recent twelve months
- Number of loans and value of gross portfolio by loan product at year-end for past three years and monthly data for the most recent twelve months
- Number of loans and value of gross portfolio by sector (economic activity) at year-end for past three years and monthly data for the most recent twelve months
- Number of loans and value of gross portfolio by Range of Amount at Disbursement at year-end for past three years and monthly data for the most recent twelve months
- Number of loans and value of gross portfolio by Range of Tenors at Disbursement at year-end for past three years and monthly data for the most recent twelve months
- Value of PAR>30 by branch at year-end for past three years and monthly data for the most recent twelve months
- Value of PAR>30 by loan product at year-end for past three years and monthly data for the most recent twelve months
- Value of PAR>30 by sector at year-end for past three years and monthly data for the most recent twelve months
- Value of PAR>30 by Range of Amount at Disbursement at year-end for past three years and monthly data for the most recent twelve months
- Value of PAR>30 by Range of Tenors at Disbursement at year-end for past three years and monthly data for the most recent twelve months
- Report showing aging of portfolio in arrears at year-end for past three years and monthly data for the most recent twelve months (i.e. value of loans without arrears, PAR of 1 to 7 days, 8 to 30 days, 31 to 60 days, etc.)
- Value of rescheduled loans for past four years and current year to date
- Number and value of loans written off during past four years and current year to date
- For the most recent month: List of 50 largest loans with details for each: amount at disbursement, amount outstanding, and arrears.
Cooperating Lenders
MicroCredit Enterprises will forward your completed application, free of charge and as a courtesy, to other potential lenders and funding sources. You are under no obligation to respond, but MicroCredit Enterprises hopes that by comparing various lenders, your MFI will obtain the most favorable loan.
Applying MFIs should contact each Cooperating Lender directly about the status of the submitted application. MicroCredit Enterprises accepts no responsibility for other lenders' policies, actions or response time.
The Cooperating Lenders with which MicroCredit Enterprises currently works are:
