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The Guarantors - Who they are and how to join. The Model - THE MODEL Guarantor model overview, scalability and risk mitigation.The Impact - Helping thousands on 4 continents in 15 countries

The Model > Risk

The poor women who are the beneficiaries of our loans are trustworthy and repay loans at a 97% rate. But MicroCredit Enterprises goes further to control the risk and exposure of its Guarantors with the following practices:

  • Applying state-of-the-art due diligence to loan applicants.

  • Spreading the risk of a default over the entire pool of Guarantors on an equitable, pro rata basis. In the event of an overseas financial loss, each Guarantor bears the loss on a tax-deductible basis (consult your tax advisor).

    • Upon reaching its goal of 100 Guarantors, MicroCredit Enterprises will grow to a $100 million guarantee pool, translating to only a 1% risk exposure per Guarantor.

    Diversifying its loans worldwide and limiting its exposure in any one country to 15% of the outstanding loan portfolio and to any one MFI to 10% of MCE's lending capacity.