Through lendwithcare, CARE partners with local microfinance institutions to provide loans to entrepreneurs. Any partner that receives funding or technical assistance from CARE for microfinance activities is expected to adopt and implement a code of conduct aimed at fostering transparency and protecting its customers. CARE’s goal is to develop and enhance the capacity and capability of MFIs to independently provide effective, long term, and sustainable financial and non-financial services to the poor.
Cooperativa Santa Anita, Ecuador
MicroLoan Foundation, Zambia
MicroLoan Foundation, Malawi
Reef Finance, The Occupied Territories of the West Bank and Gaza
Thrive Microfinance, Zimbabwe
MicroLoan Foundation Zimbabwe, Zimbabwe
There are a number of factors we take into consideration when choosing microfinance partners. We have developed eligibility criteria for prospective microfinance institutions (MFIs) that wish to partner with lendwithcare. Some of these criteria are essential (marked with E) and must be met by an MFI in order for it to be considered for partnership, while other criteria are more flexible (marked with F).
The specific criteria are as follows:
- Have at least three years of experience of working in microfinance (E)
- Have at least 500 active clients (E)
- Not have a "portfolio at risk" at 30 days ratio of more than 10% (E)
- Be able to produce externally audited financial statements for the past three years (E)
- Possess an operational self-sufficiency ratio of more than 90% as per the last financial statement (E)
- Be able to open or already possess a UD Dollar bank account and be able to receive and send funds in US Dollars (E)
- Have a reasonable internet connection (E)
- Adhere to CARE's code of conduct in microfinance (E)
- Be legally able to undertake microfinance operations within the country of operation (E)
- Be able to post information and updates in English (F)
- Have taken at least one loan from an external agency on which it has been making regular repayments (F)
- Either already have or be ready to post its profile on Mix Market (F)
- During the last three years have had a rating by a recognized microfinance rating agency such as Inclusion (Social Ratings), Planet Rating, Microfinanza, MicroRate and M-Cril (F)
Our priority is to partner with organisations that have focus on improving the lives of poor people. In addition to undertaking desk research and consulting with our local CARE country offices who have many years of experience of delivering humanitarian and development projects (including microfinance) within country, we always undertake in-country due diligence field visits lasting between 1-2 weeks to carefully examine the operational policies and procedures of MFIs and this includes discussions with staff and clients. Once a partnership is established we request partners to submit quarterly reporting data on a range of financial and social indicators and we undertake further in country visits at least once every 12 months to ensure that eligibility criteria continues to be met. If a partner MFI no longer meets the eligibility criteria, lendwithcare may suspend or cease partnership, but only after discussions and investigations as to the causes.
You can find more information on each of our partners and the interest rates charged by clicking on the links to our partners above.