microStart in Belgium Group of social entreprises serving social cohesion 2.

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Transcript of microStart in Belgium Group of social entreprises serving social cohesion 2.

Page 1: microStart in Belgium Group of social entreprises serving social cohesion 2.
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microStart in Belgium

Group of social entreprises serving social cohesion

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Started as a pilot project in 2011-2012

Our mission:

Microloans (from 500€ to 10.000€; max. 36 months) business-related (existing or start-ups). The recipients must be unbankable.

Free Technical Assistance to customers to help them launch & develop their activities, and to make sure the business survives.

Adapt the regulatory framework for micro-entrepreneurship.

Requirements: a cosigner for at least 50% of the lent amount.

Costs: interest rates from 8,25% to 9,75%, commitment fee 5%.

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Outcome: October 31th 2013

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3000people

met700

microloans

5000€average amount per loan

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Experiment starting in December 2013

Micro-savings as collateral

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1. Context

- Sometimes trustworthy entrepreneurs can’t find a cosigner in their circle of friends/family or don’t want to for cultural reasons.

- The majority of our target audience needs financial education.

microStart is client-oriented, and wants to innovate in order to answer their needs

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2. Our Inspiration

Traditional microcredit systems in developing countries, based on the model used by savings and credit cooperatives.

microStart goes back to basics, and tries to adapt that model to the Belgian framework

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3. Constraints

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Difficulties to find a cosigner

Micro-savings = collateral for the loan

When the initial deposit is on the Bpost savings account

(tied-up money), the loan can be disbursed

Matched savings program (20% of the deposit, max.

300€),

Partnership with the Levi Strauss Foundation

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To summarize…

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Thank you for your attention

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vis

www.microStart.be