Wholesale loan to MFI

This is a wholesale loan product to MFIs, the loan disbursement and repayments are in Euro, therefore there is no currency loss to investors.
Product ID 458
Product Status Active
Provider Name MYC4 East Africa Ltd
Administrator Name MYC4 East Africa Ltd
Country Kenya
Currency EUR

Specifications Minimum Maximum
Loan Amount (EUR) 100000 500000
Investor Interest (%) 2.00 6.00
Grace Period (month) 1 6
Payback Period (month) 1 24
Bidding Period (day) 1 45

Fees and Insurance Closing Fees (%) Interest Fees (%)
MYC4 1.00% 3.00%
Provider 0.00% 1.00%
Administrator 0.00% 0.00%
Insurance 0.00% 0.00%

Insurance Information:
No insurance on this product

Risk Management Information:

Required interaction with the client prior loan decision:
Acceptance and signing of MYC4 general conditions agreement, Due diligence of the MFI by MYC4 Team, Signing of the offer letter to the MFI by the directors.

Assessment of client’s affordability of the loan:
Institution lending capacity and loan book, Asset base, Liquidity management processes, Active client base

Assessment of client’s stability:
Good governance structures, Internal control environment and risk management policies and processes are in place, key and experienced personnel in microfinance, size of outstanding loan book, No of active clients, affiliation to industry bodies e.g. Mixmarket

Assessment of client’s reliability/character:
Past experience of the MFI with other lenders, Personal profiles of the current directors

Securities taken for this loan (collateral, co-signers, etc)*
1.Pledge in favour of MYC4 EA over the entire loan portfolio of the MFI 2. Personal guarantees by the directors 3. Debenture over current and future assets of the MFI 4. Legal charge over property and other assets owned by the MFI

Other incentives for timely repayment of loan:
No incentives offered at the moment

* Disclaimer: Investors shall have no recourse to the security held in respect of any loan to Borrowers, nor have any recourse against MYC4, Loan Administrators or Providers for any default by Borrowers in their payment and repayment obligations.