1. How much can I lend?

    The minimum loan amount is €10. You may choose to lend anywhere between €10 and €4,000 to the same micro-entrepreneur. You may however lend to several micro-entrepreneurs as part of the same transaction.

    Please note: on the website, the pre-populated loan amount of €50 is given only as an example, and you can enter a new amount of your choice. An option also allows you to directly complete the financing required for a project.

    2. What is the “piggy bank”?

    At Babyloan, the piggy bank is your personal account. It is credited by repayments from the micro-entrepreneurs, and is debited when your loan funds are released and when money is transferred back to your personal bank account. You can access your piggy bank by signing in with your username and password. It will appear in the top right-hand corner of your screen.
    By clicking on the heading “My money”, you can view the piggy bank and the flow of money in more detail, and also request a money transfer to your personal account.

    3. How can I use my piggy bank to lend money with Babyloan?

    To use your piggy bank, you must first visit the website and sign in using your username and password. The amount available on your account will be visible in the top right-hand corner of your screen.

    Please note: when you arrange a loan, the funds in your piggy bank are used by default and before any other mode of payment (if the sum of your loan is higher than your current piggy bank balance, you will have to settle the outstanding amount using a bank card).

    4. Why must I enter my personal details when I make a loan?

    When you lend money with Babyloan, a loan contract is established between you and our field partner in charge of granting the microcredit to the micro-entrepreneur(s).
    In order to draw up this contract, we need:
    - Your surname
    - Your first name
    - Your postal address and a valid email address
    - Your date of birth, to confirm that you are not a legal minor
    - Your nationality

    Please note: it is up to you to check that these details are entered correctly. Should the need arise, we must be able to contact you by email and by post.

    5. Is there a tax benefit to lending money with Babyloan?

    A tax deduction is only possible when donating to a non-profit charitable association . With Babyloan, however, you are making a loan rather than a donation.

    As your loan will be repaid in full, the only charge that you have to cover – and that could therefore be eligible for a tax deduction - is the contribution to Babyloan. However, the tax deduction is not possible because Babyloan is a social business and not a charity.

    Why? Babyloan favours the model of a financially-independent social business, which functions without the need for public financing.

    If you wish to make a tax-deductible donation, you may always choose to support the Babyloan Networks charity and its educational project Ma Classe Solidaire.

    6. Do I lend money directly to the microentrepreneur of my choice?

    Your loan first passes through the Microfinance Institution that is in direct contact with the chosen micro-entrepreneur . That institution is obliged to transfer your money to the microcredit of the micro-entrepreneur that you have chosen to support, and we then request the corresponding statement or accounting certification.

    7. Is there any risks when lending on Babyloan?

    The risk of non-repayment is low when lending funds, but it still exists. MFIs usually operate within geographically and economically difficult environments – conditions can drastically change over time. We are very proud we've managed to maintain a remarkable reimbursement rate since 2008, and we are committed to ensuring our lenders get their funds back. The risk is partly guaranteed in the following way:

    • If the micro-entrepreneur does not make repayments (the repayment rate among micro-entrepreneurs around the world is 97%), our local partner (the microfinance institution) guarantees repayment
    • If the microfinance institution experiences liquidity problems that prevent repayment of the loans, repayment is then not guaranteed and the lender may not be able to recoup the sum lent.

    This is where Babyloan’s operations and expertise come into play via our microfinance department, whose purpose is to analyse the country and microfinance risk, to assess the financial health of the organisation, as well as to prematurely terminate a partnership agreement in order to prevent a defaulted payment.

    Please note: since 2008, to avoid potential risks, our teams have had to terminate several local partnerships (in Vietnam, Tadjikistan, Costa Rica, Nicaragua, among others).

    8. How do I transfer my loan funds?

    We accept all payments visa Visa and Mastercard credit cards. No other means of payment (American Express, debit cards and e-credit cards) are accepted. Unfortunately, we are still unable to offer payment by PayPal due to technical and operational constraints.

    9. Are my transactions secure?

    Babyloan is subject to a security system that aims to protect, as effectively as possible, all the sensitive data linked to the method of payment. Bank details are transmitted on one sole occasion when payment is made. This transmission of details is carried out in a secure way thanks to the SSL protocol (Secure Socket Layer).
    This system is identifiable on your web address bar, and on the status bar that appears at the bottom of the browser window. The address of a page secured by SSL starts with https rather than http (the letter “s” is added).

    10. How do I receive confirmation that my loan has been registered?

    You will receive an email in the few minutes that follow having made a transaction on the site. This email confirms to you that your loan has been registered, and contains a transaction reference number. Please keep a record of this reference, to use it in case of correspondence with our customer service team. An email will also be sent to you as soon as the project has been financed in full. This email is to be kept safe, as on our side it allows the money to be transferred to the micro-entrepreneur. You will then have to wait around 2 months before receiving your first repayments.

    11. How can I follow the progress of my loans?

    Under the heading “My activity” in your personal space, accessible with your username and password, a schedule allows you to keep tabs on your loans:

    • The money available in your piggy bank
    • Upcoming repayments, by project
    • The date of the final repayment
    • Your loan contracts, available for download

    Please note: the upcoming and final repayment fields are populated as soon as the micro-entrepreneur’s project has been financed in full.

    If you have signed up for the “Babyloan lends for you” option: in your personal account, under the heading “My activity”, the question mark symbol allows you to identify the loans made in your name by Babyloan.