Cordaid

Cordaid specifically supports emerging microfinance institutions (MFIs), i.e. savings and/or credit operations which are developing into organisations that have their appropriate governance, management and personnel structure and promise high potential for sustainability. These organisations aim explicitly at providing financial services to micro-enterprises of the poor.

Furthermore, Cordaid aims at strengthening the microfinance sector in specific countries by supporting national microfinance associations, training institutes and lobby & advocacy activities.

Cordaid disposes of a range of products that can be used to tailor funding of these programmes to their specific needs:

• Short and medium term loans with either fixed or semi-fixed interest rates. In either Euros, US Dollars or local currency. The principal loan must be repaid and interest must be paid semi-annually. Collateral requirements depend on the situation and type of initiative.
• Bank guarantees for a limited period in countries with a well-functioning financial system. With the aim to stimulate lending and sharing of risks by local commercial parties to organisations engaged in sustainable development of the poor.
• In exceptional cases: matchmaking in attracting equity capital from other financiers.
• Seed capital for emerging MFIs.
• Additionally advisory services, at times funding for technical assistance and capacity building, may be offered.