Microfinance institution
The term microfinance institute - acronym MFI - is a designation in the agreements of the Microcredit Fund Germany for the organizations that are allowed to grant microloans . The contract is concluded between the cooperation banks, the fund and the accredited microfinance providers. At the end of 2012, 63 MFIs were licensed, and 55 MFIs in Germany are currently granting microloans.
Before being admitted as an MFI, applicants go through a detailed accreditation procedure in which their reliability, financial stability and expertise are checked. Every microfinance institution is accredited according to the rules recognized by the German microcredit fund and the bank.
The microfinance institutions have the task of looking after the borrowers and making recommendations to the bank on granting and changing loans.
Rights and obligations of the MFI:
- Support for borrowers
- Submission of credit recommendations to the bank using an IT tool
- ongoing repayment control
- Crisis intervention
- Tracking of damage in the event of service disruptions
- Collection, administration and recovery of loan collateral
- Recommendations for loan agreement changes and loan write-offs
- Development of methods of microlending and their application
The microfinance institutions are primarily liable for the microloans they have granted as part of a first-loss liability .
Individual evidence
- ↑ accredited DMI microfinance providers
- ↑ Microcredit Fund Germany: active microfinance institutions ( Memento of the original from December 3, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. , Accessed December 15, 2012
- ↑ Microcredit Guide: Cooperation Agreement for Microfinance Institutions , accessed on December 14, 2012
