• Babyloan registers your loan. As soon as your philanthropic loan is registered on the platform, our team starts working on it. Each month, our microfinance department takes care of sending the funds that were raised to our partners on the field.

 

  • Our local partner receives the funds at the end of the month. At the end of the month by which the project’s funding reaches completion, we transfer the funds to our local partner, a Microfinance Institution that bridges the geographic gap between the microentrepreneurs and us. The MFIs are there to assist the microentrepreneurs by providing them various services both financial and non-financial. They are also in charge of granting and recovering the microcredit.

  • Your loan is allocated to your microentrepreneur of choice in our local partner’s account book. When the microentrepreneur’s project appears on the Babyloan website, he usually has already been granted a loan by the MFI. Indeed, for simple reasons of subsistence, the micro-entrepreneur, who needs a loan and agreed to be supported on Babyloan, cannot wait until his project is completely funded on the website to receive the funds. The MFI therefore gives them an advance, and your loan will come to fill the gap in the MFI’s account books that corresponds to the microentrepreneur’s project you chose to support.

 

  • The microentrepreneur repays our local partner who then repays you. The microentrepreneur repays the IMF monthly and with interests.  Our local partner then repays you by monthly instalments on your Babyloan account.

 

  • Once the repayment process has started, it’s your move again and you can choose to make another philanthropic loan! Once you have been repaid, you can simply choose to allocate your funds to another microentrepreneur. Think of it as a virtuous cycle: with the same funds lent time and time again to different microentrepreneurs, the impact of your action gets stronger and stronger, making you what we could call a “small-scale philanthropic banker”.