Targeting the right partners

Less-established MFIs often face difficulties accessing the financial resources needed for growth and sustainability. Oikocredit considers it important that these MFIs receive support. Our data shows that for many of these MFIs, Oikocredit is often the first non-domestic financier.

Oikocredit has developed a system to classify MFIs into three segments. The top segment contains the established MFIs and the bottom segment the least established. Based on Oikocredit’s classification system, 83 of the 91 new applicants in 2010 belong to the bottom and middle segment.

By far the largest part (81%) of Oikocredit's total outstanding portfolio is allocated to intermediary microfinance institutions (MFIs). MFIs use Oikocredit's capital to provide small loans (‘microcredits') and other financial services to individual entrepreneurs and small and medium sized companies (multi-purpose financing; SME; wholesale). Oikocredit also provides financial services directly to businesses and organizations in sectors such as agriculture, fair trade, manufacturing, health care and education.