Client Protection and Transparency

Oikocredit supports industry-wide initiatives that promote transparency and facilitates the implementation of tools that monitor the social impact of investments. Most importantly, Oikocredit integrates these into its own operations and supports project partners in integrating social performance management into their operations.

Client Protection Principles

Oikocredit was one of the first microfinance investors to sign up to the Client Protection Principles, which are designed to create consistent practices and policies for the fair financing industry. They have been integrated into Oikocredit's ESG scorecard. The six core principles concern:

providers will take reasonable steps to ensure the borrower has adequate ability to repay the loan and is not at risk of over-indebtedness;
pricing, terms and conditions of financial products are transparent;
debt collection practices are not abusive or coercive;
staff will adhere to high ethical standards in their interaction with staff members (especially in regard to corruption or mistreatment);
providers will have timely and responsive mechanisms for complaints or problems from their clients;
an individual's privacy will be respected.

MFTransparency

In October 2008, Oikocredit signed the MFTransparency agreement which signifies a commitment to integrity and transparency in pricing. Aim is to present clients information on credit products and their prices in a clear and consistent fashion and to provide education on interest rates and product pricing. See also http://www.mft.org/