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.