Criteria and procedure for smallholder farmers' organizations
Criteria and procedure for smallholder farmers' organizations

Criteria and procedure for smallholder farmers' organizations

Loan conditions

  • Principal amount: between USD 150,000 and USD 1,500,000 with possible leverage from other funds up to three times the specified amount
  • Loan currency: USD, EUR or local currency
  • Short-term trade loans with a tenor from 3 to 18 months, used to finance harvest and processing
  • Short-term trade loans are given against purchase orders
  • Long-term investment loans with a tenor up to 5 years, used to finance capital investment
  • Long-term investment loans require physical asset collateral
  • Interest rate: near market rate

Eligibility criteria

Alterfin uses the following criteria to assess the eligibility of a finance application:

  • Number of years of operation > 2
  • Benefits for smallholder farmers should be demonstrated (e.g. by fairtrade label)
  • Minimum number of farmers benefiting: 150
  • Minimum yearly sales > USD 500,000
  • Operational Self Sufficiency > 90% and positive trend

Loan Application Procedure

  1. The applicant sends the application form by e-mail. On the basis of this information Alterfin will decide if the finance application is eligible yes or no.
  2. If the finance application is eligible, an Alterfin credit manager will do a due diligence visit on site. Her/his report will be presented to the credit/investment committee, which will decide on the finance application.
  3. Once the loan/investment is approved. Agreements will be drafted. After reception of signed agreements and other documentation, disbursement is done. Then the monitoring period starts and the applicant will be asked to report on regular basis.

 

Apply for funding?

Download the application form below and send it back to one of the following adresses depending on your region:

africa [at] alterfin [dot] be
asia [at] alterfin [dot] be
latam [at] alterfin [dot] be