MicroCredit Enterprises finds creditworthy, locally-run and locally-controlled microfinance programs around the world. When we are confident the local program is well-run and serving its community’s people, MicroCredit Enterprises provides an affordable, interest-bearing loan so the program can expand.
MicroCredit Enterprises provides affordable, interest-bearing loans so that microfinance institutions can expand.An overseas microfinance institution (MFI) is like a neighborhood bank with the same challenges and capital requirements confronting any expanding venture, but with the added responsibility of serving economically marginalized populations. Many of these MFIs are creditworthy and operationally self-sufficient with proven records of success.

History of Guaranteed OpportunityMicroCredit Enterprises launched its MFI lending operations in January, 2006. Thus far, MicroCredit Enterprises has never had an MFI loan default.

Currently, MicroCredit Enterprises has 42 loans financed to MFIs on 4 continents, impacting approximately 505,000 poor people. The average outstanding MicroCredit Enterprises-financed loan balance worldwide per borrower is $427.00. Some individual loans are as tiny as $37.00.

Countries of operation include:

Armenia
Azerbaijan
Bolivia
Cambodia
Ecuador
Georgia
Honduras
Indonesia
Kyrgyzstan
Mozambique
Nicaragua
Nigeria
Peru
Tajikistan
Vietnam

MicroCredit Enterprises also works with MFIs who are affiliated with the microfinance networks listed below and has collaborated on financing MFIs with the funders below:

Acción
Catholic Relief Services
Dignity Fund
Freedom from Hunger
Grameen Foundation
KIVA
Kolibri Kapital
MEDA (Mennonite Economic Development Associates)
Mercy Corps
Microvest
Oxfam Great Britain
Pro Mujer
Save the Children
Unitus
World Relief

Inside the Guarantee ModelMicroCredit Enterprises’ affordable funds come from banks and foundations because our Guarantors have provided full recourse guarantees to MicroCredit Enterprises. At any one time, MicroCredit Enterprises borrows no more than 50% of a Guarantor’s pledged guarantee.
At any one time, MicroCredit Enterprises borrows no more than 50% of a Guarantor’s pledged guarantee.A Guarantor is responsible for the investment returns in their individual accounts, which are invested as each Guarantor determines, but the assets are subject to additional risk. A Guarantor may lose money because of an overseas MFI loan default, but each Guarantor accepts this financial risk in exchange for achieving a worthy and noble social objective.

In the event of an overseas financial loss, each Guarantor bears the tax-deductible loss on an equitable, pro rata basis with all other Guarantors. Guarantors do not realize a return on the guarantee risk, but do maintain complete control of their assets, thus, receiving all investment returns from their portfolios.
Guarantors do not realize a return on the guarantee risk, but do maintain complete control of their assets, thus, receiving all investment returns from their portfolios.The more Guarantors in the program, the less risk exposure per Guarantor. Conversely, the fewer Guarantors, the greater risk exposure per Guarantor.


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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.