criteria and procedure

microfinance institutions

Eligibility criteria

Alterfin assesses the eligibility of an application for financing by using the following criteria:

  • Years in operation: at least 2 years
  • Minimum portfolio: USD 1,000,000
  • Clientele: at least 1,000 clients or members
  • Objectives: the microfinance institution’s ethos and impact must be clearly aligned with Alterfin’s key areas of focus: fighting poverty, improving rural livelihoods, gender equality and sustainable smallholder agriculture
  • PAR 30 days + restructured loans + written-off loans < 10%
  • Operational self-sufficiency > 80% and a positive trend
  • Debt to equity ratio < = 5

In addition to these criteria, Alterfin will not finance any company on its exclusion list under any circumstances.  

Financing conditions

  • Amount: between USD 100,000 and 3,000,000
  • Currency: USD, EUR, or local currency
  • Term: two to four years
  • Interest rate: in line with market rates (including mandatory currency hedging)
  • Administration fee: 1% of the loan amount

financing process

  1. Receipt of the application
    You send us the loan application form by email.
  2. Shortlisting
    Based on the information provided in the application form, other data and initial interviews, we decide whether or not your application is admissible.
  3. Due diligence and field visit
    If your application for financing is admissible, an investment manager will make a field visit to assess your business.
  4. Approval by the investment committee
    The investment manager’s report is presented to the investment committee, which makes the final decision about providing financing.
  5. Contract and disbursement
    Following the decision of the investment committee, we begin drawing up contracts and then disburse the financing.
  6. Follow-up
    Throughout the loan’s term, you provide us with regular operational and financial reports, along with reports on your social and environmental performance.

want to apply for financing?

Download the application form, fill it out and send it to the manager of your region: