Grameen Jameel

Guarantees

Financing Services Offered by Grameen-Jameel
Partial Credit Guarantees

Grameen-Jameel guarantees expand access to local commercial markets for MFIs, with the following key features:

– Guarantees provided by Grameen-Jameel are US Dollar in the form of a Letter of Guarantee (LG) or a Standby Letter of Credit (SBLC), which are liquid with funds available against first demand. Minimum guarantee is USD 100,000 and maximum is USD 5 million, extended up to 5 years.

– The guarantee is used to leverage local currency financing by a local commercial bank for loan portfolio expansion (not working capital). MFI eligibility is subject to the following minimum criteria and conditional upon transactional due diligence and investment committee approval:

  • In operation for at least three years with full financial statements; at least the last two years professionally audited.
  • Size: At least 10,000 clients or loan portfolio greater than USD 2.5 million.
  • Mission to serve the poor demonstrated by at least one of the following:
  • Awards and/or industry reputation
  • Impact study (internal or external)
  • Low average loan size vs. in-country peers
  • Portfolio at risk greater than 30 days < 5%
  • High percentage of female clients
  • Near or above full Operational Self-Sufficiency