The criteria for financing are the following:
1. The total amount of the investment/budget should not exceed the 25,000 euros.
This applies for the initial investment if it is a newly created company or for the budget of a new venture if it is an existed company.
The aforementioned amount derives from the fact that we want to be an important part of financial support and we address mainly people who would not be able to find resources from other sources, therefore the loan they will take must be a huge part of their total investment and not just a “patch” among other sources of financing.
Some examples of investments for which one can use the loan are the following:
2. The enterprise must be registered at the time of the loan disbursement.
We cover the following legal forms: SA, Ltd., GP, PC, sole proprietorships, as well as freelancers.
3. The activity must be legal.
4. The person concerned must have the majority stake in the company.
5. The person concerned must have a guarantor who will assist in repaying the microcredit, only if the entrepreneur faces difficulties in paying. The guarantee concerns the 50% of the total value of the loan and up to 3,000 euros. The guarantor signs the guarantee with AFI.
The guarantee does not include any form of movable/immovable property. Also, it is not required for the total amount of the guarantee to be committed at any given time.
What the limit of 3,000 euros means: if the entrepreneur takes a loan of 2,000 euros, then the guarantor must guarantee for the 1,000 euros, while if they take a loan of 9,000 euros then the guarantor must guarantee for 3,000 euros (despite the fact that the 50% of the loan is 4,500 euros).
STEP 1: Welcoming
What does it entail ? At the occasion of a one-to-one or group meeting, AFI explains to you what we offer and what the process is to benefit from our support. You get the chance to present your idea or your business. AFI analyses your needs for support and check your eligibility to our program, for example If your needs match with what we offer
STEP 2: Loan application & capacity building
What does it entail ? After the 1st contact, if you are eligible and want to go further, you’ll get one to two loan appraisals interview with one of our Microcredit Development Officer in order to presents more in details your personal background, as well as your business. At the same time AFI guides you to gather official documentation and prepare your loan application to be handed over to the bank later.
In parallel to the preparation of your loan application, AFI provides you with free of charge business development support. Our staff and volunteers help you to build your business plan : Cash-flow, accounting, marketing, product definition, distribution are all discussed. If there is a need for deeper work, AFI staff and/or volunteers can provide additional support through one-to-one meeting, training session and mentoring.
STEP 3: Evaluation of your loan application and decision
What does it entail ? Once finalized, your microcredit development officer presents and defends your case before AFI Evaluation Committee for approval. In case of approval, your case is taken to one of AFI partner bank, which assess your loan application.
STEP 4: Loan contract signature & funds disbursement
What does it entail ? If your application is approved and if your file complete, AFI schedules an appointment at the bank and accompany you the day of the appointment in order to sign the contract. Funds are disbursed within 60 days
STEP 5: Follow-up and long term support
What does it entail ? During the term of your loan, AFI regularly follows-up on you and your business and provides free of charge support when needed through training and mentoring.
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