Oikocredit finances Microfinance Institutions, cooperatives, small and medium-sized enterprises, fair trade organisation and other NGOs or business enterprises.

Lending criteria for financial intermediaries

  • Your organization must 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.

Lending criteria for Small and Medium Enterprises

  • Job Description – The SME should not employ less than 20 people on a full time basis. The SME should not be highly capital intensive. The capital /employee ratio should not exceed Euro 20,000 and the loan capital for every new job created should not exceed Euro 20,000
  • Best Practice Conduct – The SME should protect employees in terms of social security, risk and adequate labor environment. The SME should pay a fair wage to their employees and also comply with best local practice in environmental care and animal welfare
  • Socially responsible owners – The owners should have a record of good treatment of employees and contribution to social welfare activities
  • Financial accounts track record – The SME should have a record of at least 3 years of annual accounts and 2 years of profits in the last three years and last annual accounts should be audited.
  • Established legal entity – The SME should be an established legal entity.
  • Collateral – The collateral requirements are similar to the ones required by the local banks
  • Significant own investments – The owners of the SME should contribute significant amounts of equity and give personal guarantees
  • Minimum solvency – Debt/Equity requirements by Oikocredit should be comparable to local bank requirements (the owner’s contribution to the project should not be less than 33.3%)
  • Reinvestments – The SME should agree to reinvest a substantial part of the profits into the company during the term of the loan
  • Short loan periods – Oikocredit loan size will grow with the growth in turnover and assets of the SME. Oikocredit will therefore prefer to start with small loans and with phased disbursement of a loan. Follow-up loans will then go hand in hand with successful repayment.

Loan amount: from 50,000 to 5 million Euros or Dollars or the equivalent in local currency.

Apply now

Get in touch

Oikocredit East Africa
Methodist Ministries Centre, 2nd floor
Oloitokitok Road, Lavington
30328-00100 Nairobi
workT: +254 20 3862314/8
faxF: +254 20 3862310