Nowadays, MFIs principally offer microcredit, but certain institutions also provide other types of services: savings, micro-insurance, support services and training.

What really makes a Microfinance Institution unique is its dual purpose, as its aims are both social (in contributing to development and to the fight against poverty) and financial, since the MFI must be financially balanced and self-sustainable. This dual nature allows it to remain operational and, in the process, to continue supporting more and more micro-entrepreneurs.


How does a Microfinance Institution work?

A Microfinance Institution functions in a similar way to a bank, in the sense that both must find the financial resources to lend. However, Microfinance Institutions must also show the flexibility to meet the requirements of their beneficiaries, who often find themselves in precarious situations.

In this way, microentrepreneurs call on Microfinance Institutions to access microcredit. The latter send credit specialists out into the field, in order to meet microentrepreneurs and assess their solvability, gauge their requirements (with a view to providing a personalised service), and finally to support them in carrying out their projects. Microfinance Institutions remain in close and personal contact with their beneficiaries.

The final decision over granting the loans is taken by a committee within the Microfinance Institution. The recipient then repays the loan either via the credit specialist, or directly with one of the Microfinance Institution’s agencies.

Why work with MFIs?

This is a key point relating to the platform’s model and strategy. Babyloan cannot replace the Microfinance Institutions in carrying out tasks such as granting the microcredits, overseeing repayments and providing social support services. Furthermore, lending directly to microntrepreneurs would be very complicated because in numerous cases they do not have access to the internet and can neither read nor write. Finally, the absence of an intermediary out in the field exposes lenders to a dangerously high risk of non-repayment, as has been observed on other sites.


All of our partnering Microfinance Institutions:

  • Microcredit in Peru with Edaprospo
  • Microcredit in Peru with Fondesurco
  • Microcredit in Haiti with Palmis
  • Microcredit in Honduras with Ahsetfin
  • Microcredit in Honduras with Prisma
  • Microcredit in Nicaragua with AFODENIC
  • Microcredit in France with the ADIE
  • Microcredit in France with Créasol
  • Microcredit in Bosnia with Mikra
  • Microcredit in Benin with Finadev
  • Microcredit in Senegal with MEC FADEC
  • Microcredit in Uganda with Encot
  • Microcredit in Uganda with HOFOKAM
  • Microcredit in Kenya with JCS
  • Microcredit in Mali with RMCR
  • Microcredit in the Palestine with Asala
  • Microcredit in Morocco with INMAA
  • Microcredit in the Philippines with GDMPC
  • Microcredit in Vietnam with Thanh Hoa MFI