What is microcredit?

Microcredit steps in where traditional banks are unwilling or unable to operate, providing loans and services to very poor people where they would otherwise be unavailable — or in areas where predatory moneylenders dominate the market.

Why loans and not aid?

Nearly three billion people in the world lack access to basic financial services. Without credit or savings, they have little hope of improving their living conditions. By providing fair loans instead of aid disbursements, Oikocredit provides a sustainable, long-term solution. Our experience proves that loans are a more appropriate instrument than grants to achieve economic productivity and self-reliance.

How does Oikocredit work?

Oikocredit seeks out and provides capital to hundreds of the best Microfinance Institutions (MFIs) worldwide. MFIs are our partner lending organizations on the ground (credit unions, small local banks, NGOs, or credit cooperatives). These groups then dispense life-changing loans to poor and disadvantaged entrepreneurs, giving them the resources they need to lift themselves and their families out of poverty.

As local organizations, our MFI partners work one-on-one with the borrowing entrepreneurs by issuing loans, collecting payments, and offering important business services. Due to their proximity to our borrowers, they are able to provide much-needed advice and training to borrowers, as well as a network of support systems, savings accounts, and social services such as basic health care.

How does Oikocredit choose to which projects (e.g. MFIs) it will give credit?

• People — The project must create jobs for groups of disadvantaged people.
• Group-ownership — We generally finance cooperatives and finance institutions although we also support small and medium-sized enterprises.
• Women — We favor projects where women are influential in management and/or implementation.
• Environment and animal welfare - We always take into account the environmental and animal welfare implications of projects.
• Viability — We only consider projects that are, or soon will be, financially sustainable and that have suitable management in place.
• Need — Our projects must show a clear need for foreign investment that can be provided within terms that secure any necessary government approvals and are beneficial to the project partners.

Where does Oikocredit lend?

Oikocredit lends to microfinance institutions (MFIs) and co-ops in more than 70 countries across Africa, Asia, Europe, and Latin America.

How do I invest?

There are two ways to make an investment:

1. Write a CHECK to Oikocredit USA — Invest directly in Oikocredit USA with a minimum deposit of $250. This is called a Definitive Community Note and is designed for investments by individuals as well as groups and other institutions. Please Select a State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virgin Islands Virginia Washington D.C. Washington West Virginia Wisconsin Wyoming to use our simple mailing system, as these investments currently cannot be made online.

2. Use a CREDIT CARD — If you are planning to invest $20 to $1000, you may do so online through our partner, Microplace. This is called an Online Community Note.

What percentage rate will I receive?

Oikocredit has historically paid around a 2% dividend to its shareholders, which is a higher returns than many common financial options such as savings bonds and CDs (check for current rates). You may select the term of your investment as 1, 3, or 5 years.

A 2% return is a sustainable return. The fact that we limit our dividend to this level enables us to charge reasonable interest rates on our loans and to extend credit to partners with a higher—than—average risk profile. Unlike other institutions, we provide loans in local currency, and we do not charge extra fees or commissions to our borrowers.

Is investing tax—deductible?

No. Like other financial investments, your Oikocredit investment earns a return. Tax—deductable donations can be made to cover overhead costs for Oikocredit. Please [contact the Oikocredit USA office] for more information.

When do I receive a return on my investment?

If you invest in a Community Note by check ($250 or more), at the time you make your investment, you have the option of investing for a term of 1, 3, or 5 years. Interest is paid annually, and 45 days before maturity of a Note, Oikocredit will mail a notice providing instructions for reinvestment or redemption of funds.

If you invest in a Community Note via Microplace, interest is paid quarterly. Beginning 90 days before maturity of the Note, you may receive a notice giving you the option to reinvest the funds, or having the funds returned to you.

Is my investment safe?

In the history of Oikocredit, we have never defaulted on paying our investors. At the same time, every investment involves risk and it should be noted that historical returns are no guarantee of future performance.

How is Oikocredit different from groups like Kiva?

Kiva gives lenders the opportunity to lend small amounts of money at a 0% return to MFIs overseas. Typically, investments made in Oikocredit are made in larger amounts, are often considered a part of an individual or group's financial portfolio, and earn a financial return. Investments are distributed to networks of highly credit—worthy MFIs overseas.

How long has Oikocredit been in operation?

Oikocredit was founded in 1975 as a way to change the world with investment. Since then, Oikocredit and its partners have reached more than 17 million people in 71 different countries.

Does Oikocredit promote Christianity?

No. Although Oikocredit references faith in some literature and works with faith—based groups throughout the world, the organizational mission is not to evangelize or promote religion.

What does the name Oikocredit mean?

Our name embodies our core value: belief in people. In ancient Greek, 'oikos' means house, community or world — the places where people live together. Credit obviously refers to our financial operations, but the word derives from 'credere' — to believe. At Oikocredit, our central belief is in the power of households and communities to build a better world by lifting themselves out of poverty.