New loan to ECLOF International
October 17, 2018
We recently closed a $2 million loan to ECLOF International, a faith-based organization that primarily provides loans and technical assistance to partner microfinance institutions (MFIs). ECLOF works with MFIs that provide bottom-of-the-pyramid populations with loans, savings, insurance, technical, and financial training.
Founded in 1946, ECLOF’s original mission was to offer financial support to churches throughout Europe after WWII. By the 1960s, with reimbursements from European churches on their initial loans, ECLOF began rapidly opening international offices, shifting from Europe to the developing world. In the 1970s, ECLOF was among those pioneering microloans. Today, ECLOF is the microfinance arm of the ecumenical community and reaches out to rural areas that have historically not benefited from microfinance.
ECLOF lends to MFIs across 13 countries in a well-diversified network. The average loan size of ECLOF end borrowers is around $300. More than half of borrowers in the ECLOF network are located in rural areas around the world, and one-fourth of borrowers make their main income through agriculture.
Developing sustainable and scalable microfinance loans for agriculture has been challenging. Typical microfinance terms are not always well-suited for agriculture—for example, regular amortization schedules may not be as appropriate as repayment schedules based off of crop cycles. ECLOF remains a leader in addressing the financing gap. With agriculture, there is tremendous social impact potential, as 78% of the global poor are rural. (World Bank).
This investment, made possible through investments in our Note, will help ECLOF continue providing financial support to rural and underserved populations across the globe.