Criteria

Selecting the right partners is the most important element in achieving our development goals. Oikocredit uses strict financial and social criteria to analyse the suitability of potential partners.

Notwithstanding Oikocredit’s dynamic approach to lending decisions, it also meets absolute criteria in evaluating projects for credit assistance.

  • People – The enterprise must benefit groups of disadvantaged people and contribute to the social and economic advancement of the community where it is located.
  • Viability – The enterprise must be economically viable with appropriate management and technical leadership and is able to become self-sustaining within a reasonable period of time.
  • Need – There must be a clear need for foreign investment which can be provided within terms that can secure the necessary government approvals and are beneficial to the project partners.
  • Group-ownership – A cooperative structure is favored because beneficiaries directly participate in the operation and management of the business.
  • Women – Preference is given to enterprises wherein women are direct beneficiaries that actively participate in the decision-making and have meaningful contributions to the fulfillment of the organization’s objectives.
  • Environment and Animal Welfare – Ecological impact and protection of animals and species are given special considerations.

End client protection

If we determine that a potential partner charges excessive interest rates, pays excessive salaries or dividends or does not see its clients as a priority, we will reject the loan application.