ALTERFIN

What does Alterfin do?
Alterfin, a Belgian social investor since 1994, aims to improve the livelihoods and living conditions of socially and economically disadvantaged people and communities, predominantly in rural areas in low- and middle-income countries around the world. To achieve its mission, Alterfin invests in microfinance and sustainable agriculture in Asia, Latin America and Africa.

Alterfin at a glance

• 175 partners: 92 microfinance institutions (MFI) and 83 organisations active in sustainable agriculture
• 2,528,000 beneficiaries
• 60% of the beneficiaries are women
• 76% of our partners in agriculture are organic certified 

Eligibility criteria

• At least 2 years of operation
• Broad outreach of at least 150 famers benefiting
• Benefits for smallholder farmers should be demonstrated (e.g. by fairtrade label and/or organic certification)
• Minimum yearly sales > USD 500,000
• Operational self-sufficiency > 90% and positive trend

Lending conditions

• Amount: between 150,000 and 1,500,000 USD
• Currency: USD, EUR or local currency
• Term: 2 to 5 years
• Interest rates: near-market rates
• Short-term trade loans with a tenor from 3 to 18 months, used to finance harvest and processing; theseloans can be given against purchase orders
• Long-term investment loans with a tenor up to 5 years, used to finance capital investment; these loans require physical asset collateral

Financing procedure

1. The institution fills in the application form (available on www.alterfin.be) and sends it to africa@alterfin.be, asia@alterfin.be or latam@alterfin.be . Alterfin determines whether the institution meets the eligibility criteria.
2. If eligible, an investment manager performs a due diligence visit on site.
3. An investment proposal is submitted to the investment committee, which approves or rejects the proposal and the conditions.

For more information on the lending conditions, contact us at africa@alterfin.be, asia@alterfin.be or latam@alterfin.be .