Loans

Oikocredit is an international Development Finance Organization. We finance microfinance institutions, SACCOs, Fair Trade Organizations, Small and Medium sized enterprises and other institutions with proven social relevance.

If your project is economically viable, a loan will stimulate sustainable development in your community. Still we feel it is important that a loan matches the needs of your project. In case the loan sum exceeds your actual need, it could become a millstone around your neck instead of a stepping-stone towards a better future. That is why our regional offices closely monitor all projects. If a problem arises, the regional office works with you towards finding a solution.

Lending Criteria:

• Your organization should have at least 50 registered members and have been in existence for at least three years
• Project must be economically viable, with appropriate management and technical leadership, and become self-sufficient within a reasonable period of time
• The enterprise supported must benefit disadvantaged people
• There must be a clear need for the type of financial service (s) requested from Oikocredit
• Financial benefits must be widely distributed and not result in the enrichment of a few
• The enterprise must contribute to the social and/or economic advancement of the larger community in which it is located
• Preference is given to enterprises in which women are direct beneficiaries and where they participate in decision-making structures and procedures
• Special attention is paid to the ecological impact and the protection of animals and species. The project should meet the environmental criteria adopted by Oikocredit.

General terms of Oikocredit loans:

• Loan size: From  Euro 50,000 to Euro 2,000,000 or the equivalent in Shillings (Kenya, Tanzania or Uganda) 
• Loan funds: Have to be utilized for an income generating project
• Term of the loan: From 1 to 6 years for a local currency loan and up to 10 years for a loan in Euros or US Dollars
• Grace period: A grace period of 3 to 12 months of capital payments can be offered based on the needs of the borrower
• Interest rate: Reasonable and variable considering the market rates for comparable transactions as well as the risks and development relevance of the project.
• Securities: Suitable securities are required from the borrowing institution and its representatives to ensure serious commitment to the success of the undertaking
• Arrangement fee: Oikocredit charges a standard arrangement fee of 1% of the total loan amount.