How MicroCredit Enterprises Operates
Guarantor Governed, Guarantor ValuesThe MicroCredit Enterprises Board of Directors is 100% comprised of Guarantors. The loan committee, which determines which MFIs receive MicroCredit Enterprises financing, is 100% comprised of Guarantors.
MicroCredit Enterprises rejects loans to MFIs with excessive or predatory interest rate charges for poor borrowers. MicroCredit Enterprises has spoken out strongly against excessive microloan interest rates by MFIs and endorsed the work of Microfinance Transparency and the Alliance for Fair Microfinance.
How We Evaluate MFIsSpecial consideration is given to microfinance programs that:
At its best, microfinance recognizes and supports the whole woman by combining microfinance with health and human services, education, women’s empowerment, financial literacy training and more. Leveraging the grit and resolve of a mother’s desire to feed her children, microfinance should be more than just financial services.
For a discussion about microfinance best practices and the MicroCredit Enterprises MFI Loan Portfolio, see Microfinance Best Practices in the Essential Documents section.
Using a state-of-art and disciplined due diligence process based on proven a set of financial metrics, the MicroCredit Enterprises management evaluates each MFI loan application. If the MFI is able to prudently accept and repay a loan, and if it is true to its social and economic justice mission, the MicroCredit Enterprises loan committee will authorize a loan to the worthy MFI. On average, MicroCredit Enterprises approves and funds a new MFI loan every month.
On average, MicroCredit Enterprises approves and funds a new MFI loan every month.Once a loan is made, the MicroCredit Enterprises professional staff monitor the MFI loan portfolio every month to anticipate financial problems. Our objective is to be a helpful, supportive and reliable partner.
Through its Cooperating Lender program, MicroCredit Enterprises collaboratively works to secure the best-priced financing for MFIs by routinely and automatically sharing MFI loan applications with so-called “competitors.” In addition, MicroCredit Enterprises proactively and at no cost to MFIs coordinates other lending transactions.
Business-Like Social ChangeIn its second year of operation, MicroCredit Enterprises became operationally self-sustainable without traditional charitable donations.
MicroCredit Enterprises promotes cost-effective operations for itself and for its MFI partners. With 4 paid employees, 40 pro bono retired semi-retired executives and 12 (cumulative) pro bono professional service firms, plus a virtual operation without traditional “bricks and mortar” overhead, the 2008 expenditure budget was only 3% of total MFI loans issued. MicroCredit Enterprises’ 2008 expenditure budget was only 3% of total MFI loans issued.MicroCredit Enterprises does not make overseas charitable donations, operate humanitarian relief programs or engage in advocacy or political work. MicroCredit Enterprises does not work with government-operated or controlled programs, nor does MicroCredit Enterprises receive U.S. government funding or support.
Important Disclaimer: Information provided on our website is not intended to be tax or legal advice. Please consult a qualified tax or legal advisor. It is also important to understand MicroCredit Enterprises is not a socially responsible investment fund or an investment of any kind. MicroCredit Enterprises is not operated as a profit-seeking venture for the benefit of any individual or institution.
MicroCredit Enterprises rejects loans to MFIs with excessive or predatory interest rate charges for poor borrowers. MicroCredit Enterprises has spoken out strongly against excessive microloan interest rates by MFIs and endorsed the work of Microfinance Transparency and the Alliance for Fair Microfinance.
How We Evaluate MFIsSpecial consideration is given to microfinance programs that:
- Are increasing the number of poor women served,
- Operate comprehensive social service programs, such as women’s empowerment, health education or business training, and
- Are committed to lower interest rates for microloan borrowers.
At its best, microfinance recognizes and supports the whole woman by combining microfinance with health and human services, education, women’s empowerment, financial literacy training and more. Leveraging the grit and resolve of a mother’s desire to feed her children, microfinance should be more than just financial services.
For a discussion about microfinance best practices and the MicroCredit Enterprises MFI Loan Portfolio, see Microfinance Best Practices in the Essential Documents section.
Using a state-of-art and disciplined due diligence process based on proven a set of financial metrics, the MicroCredit Enterprises management evaluates each MFI loan application. If the MFI is able to prudently accept and repay a loan, and if it is true to its social and economic justice mission, the MicroCredit Enterprises loan committee will authorize a loan to the worthy MFI. On average, MicroCredit Enterprises approves and funds a new MFI loan every month.
On average, MicroCredit Enterprises approves and funds a new MFI loan every month.Once a loan is made, the MicroCredit Enterprises professional staff monitor the MFI loan portfolio every month to anticipate financial problems. Our objective is to be a helpful, supportive and reliable partner.
Through its Cooperating Lender program, MicroCredit Enterprises collaboratively works to secure the best-priced financing for MFIs by routinely and automatically sharing MFI loan applications with so-called “competitors.” In addition, MicroCredit Enterprises proactively and at no cost to MFIs coordinates other lending transactions.
Business-Like Social ChangeIn its second year of operation, MicroCredit Enterprises became operationally self-sustainable without traditional charitable donations.
MicroCredit Enterprises promotes cost-effective operations for itself and for its MFI partners. With 4 paid employees, 40 pro bono retired semi-retired executives and 12 (cumulative) pro bono professional service firms, plus a virtual operation without traditional “bricks and mortar” overhead, the 2008 expenditure budget was only 3% of total MFI loans issued. MicroCredit Enterprises’ 2008 expenditure budget was only 3% of total MFI loans issued.MicroCredit Enterprises does not make overseas charitable donations, operate humanitarian relief programs or engage in advocacy or political work. MicroCredit Enterprises does not work with government-operated or controlled programs, nor does MicroCredit Enterprises receive U.S. government funding or support.
Important Disclaimer: Information provided on our website is not intended to be tax or legal advice. Please consult a qualified tax or legal advisor. It is also important to understand MicroCredit Enterprises is not a socially responsible investment fund or an investment of any kind. MicroCredit Enterprises is not operated as a profit-seeking venture for the benefit of any individual or institution.
