Babyloan gives priority to microfinance institutions with social practices and a clear social mission, who also demonstrate good financial stability, enabling better risk management.

    The selection process for microfinance partners operates as follows:

    1. First contact between Babyloan and the MFI

    • Babyloan studies the preliminary application
    • The MFI is audited in its premises
    • A thorough analysis file is written and sent to the Selection Committee

     

    2. Analysis of the application file by the Babyloan Selection Committee

    • The Committee makes its recommendations
    • The Committee and Babyloan discuss the potential of the partnership

     

    3. Final decision

    • The application is approved or turned down
    • If the application is approved, the MFI is integrated and the contracts are signed
    • Average time taken to study a partnership application: 6 months
       

Selection criteria for MFI partners

Even though Babyloan focuses on financing small and medium-sized microfinance institutions, particular attention is still paid to the financial stability of the potential partners.

The criteria are as follows:

  • To become a partner, the institution must have a minimum outstanding portfolio of €200,000, distributed between a minimum of 2,000 borrowers. As it is very important to us that our partners are reliable and financially stable over time, we are unable to support microfinance institutions which have just been formed or which are in the process of being established.
  • Three years of experience and three years of audited financial statements are also required to become a partner.
  • Finally, Babyloan only works with institutions that are legally registered with the relevant authorities in their country of operation.

 

It should be noted that these are only the minimum criteria, and that the final decision over the acceptance or refusal of a file is the result of a detailed analysis that takes various criteria into account, notably including a social performance assessment.