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Babyloan - Participatory funding platform to support microcredit through allocation of loan

Project leader
Location Afrique
Duration 2016 - 2018
Intervention Area Socio-economic inclusion
Funding 100 000,00 €

Context

Only 10% of the world’s population had access to credit in 2011. The majority of the remaining 90% are excluded from the traditional banking system because they do not fulfil the conditions required by the banks for access to loans (identification documents, guarantees, minimum deposit, resident in an area without access to banks, etc.). Microcredit is a tool which enables small entrepreneurs excluded from the traditional banking system to obtain a loan in order to develop an income-generating activity. It therefore promotes entrepreneurship among local populations. Microfinance provides a means of giving the most disadvantaged groups access to financial services (credit, savings, money transfers, insurance services and tailored products), with a view to promoting the development or strengthening of income-generating activities.

This project aims to open up access to entrepreneurship for the section of the population which is excluded from the traditional banking system. Monaco’s contribution will help to fund microcredit for beneficiaries in the countries where Monaco provides official development assistance, by allocating a perpetual loan through Babyloan. The micro-entrepreneurs funded through Babyloan (the majority of whom are female micro-entrepreneurs) benefit exclusively from professional microloans intended to develop an income-generating activity.

Overall objective

To promote entrepreneurship and local economic development in developing countries by helping to provide access to finance for those excluded from the traditional banking system.

Beneficiaries 

Direct beneficiaries:

  • 450 micro-entrepreneurs (defined as people with low incomes who do not have access to credit through traditional banks)

Indirect beneficiaries:

  • Almost 1,800 people (family members of micro-entrepreneurs)
  • Local project implementation partners (microfinance institutions)

Anticipated outcomes

  • 450 micro-entrepreneurs receive funding and access to microcredit during the 36 months of the project
  • A total of 425,000 euros is loaned to micro-entrepreneurs during the 36 months of the project
  • 100% of projects by funded micro-entrepreneurs are linked to an entrepreneurial, income-generating activity
  • 70% of funded micro-entrepreneurs are women
  • 360 of the 450 micro-entrepreneurs who receive support are women
  • A total of 340,000 euros is loaned to women
  • 30% of funded micro-entrepreneurs live in rural areas
  • 135 of the 450 micro-entrepreneurs who receive support live in rural areas
  • A total of 127,500 euros is loaned to micro-entrepreneurs living in rural areas
http://cooperation-monaco.gouv.mc/en/Projects/Monaco-s-Official-Development-Assistance-projects/Multi-country/multi-country/Babyloan-Participatory-funding-platform-to-support-microcredit-through-allocation-of-loan

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