Deutsches Mikrofinanz Institut
Deutsches Mikrofinanz Institut (DMI)
German Microfinance Institute
Update May 2010 on the German microfinance initiative
Microfinance is growing fast in Germany, with the number of MFIs up from 12 to 15 since 2009 and the number of loans up from 521 in 2009 to 270 in the Feb-May quarter of 2010. There is a €100m fund, and along with every loan goes an €800 grant to cover administration costs. They have made 270 loans totalling €4m, and have a 3.17% p.a. loss rate. Interest rate is 7.5% and loans are repayable over 3 years. The MFIs have to bear 20% of the risk themselves, for which they have to deposit funds with GLS Bank. (For instance iQ Consult has €100,000 on deposit, so can lend €400,000. It had 400 applicants in the first week).
Source: Presentation to COPIE steering group, 21 May 2010