Outreach

Do Oikocredit loans reach those who need them and help bring positive change in the lives of individuals, families and the community? Empowerment of people with low incomes, sharing our resources and the creation of a more just society are at our core and for those reasons, it's essential we measure how our work affects lives.

Oikocredit's aim is to support a holistic view of microfinance organizations, helping to identify ways in which microfinance institutions (MFIs) can improve outcomes for clients, whilst taking into account the capacity of the institution and the need for strong financial performance.

Fair interest rates

To help keep interest rates charged by partners at fair levels, we are reviewing the annual percentage rates (APRs) that microfinance partners charge their clients.

Universal standards for social performance

In June 2012, the Social Performance Task Force (SPTF) introduced theUniversal Standards for Social performance Managment (USSPM) which Oikocredit has adopted.

Mentoring social performance

In 2012, Oikocredit began the second phase of its social performance mentoring programme for microfinance institutions. Microfinance institutions involved in this programme have reported changes in policies, operations and improvements in key result areas such outreach and portfolio risk.

Do Oikocredit loans reach those who need them and help bring positive change in the lives of individuals, families and the community? Empowerment of people with low incomes, sharing our resources and the creation of a more just society are at our core and for those reasons, it's essential we measure how our work affects lives.

Oikocredit's aim is to support a holistic view of microfinance organizations, helping to identify ways in which microfinance institutions (MFIs) can improve outcomes for clients, whilst taking into account the capacity of the institution and the need for strong financial performance.

Partner selection

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.

Oikocredit prioritizes partners that:

  • create jobs and income for disadvantaged people
  • are cooperatives, financial institutions or small to medium enterprises
  • have women in management positions
  • are environmentally sustainable and respect animal welfare
  • have a suitable management structure
  • are (or can soon become) financially sustainable
  • demonstrate a clear need for foreign investment

Oikocredit will never finance partners that are involved in activities including child labour, arms productions, explosives or other dangerous materials.