Belgium’s Incofin Investment Management recently provided a loan of an undisclosed amount to Kyrgyzstan-based Bailyk Finance to support the microlender’s mission “to create affordable financial solutions for rural and small cities’ residents to improve their quality of life.” Established in 2011, Bailyk provides microloans and associated insurance for consumption, enterprise, farming, housing, solar energy, medical and other purposes to 45,000 consumers – mostly women – through 43 offices. The company’s loan formats include collateral and collateral-free loans as well as conventional and Islamic loans. The loan terms include repayment periods of one to 36 months, annual interest rates of 14 percent to 45 percent, and fees of up to 1.7 percent. The loans range in size from KGS 5,000 (USD 53) to KGS 1 million (USD 10,600).
Founded in 2001, Incofin is a for-profit firm that seeks “to promote inclusive progress.” As of 2022, it has 350 investees in 65 countries, mostly active in financial inclusion and agriculture. Incofin’s portfolio is valued at USD 1.2 billion and comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund, Fonds pour l’Inclusion Financière en République Démocratique Congo, Incofin CVSO, Invest in Visions, Rural Impulse Fund (RIF) II, Volksvermogen and a loan portfolio of vdk bank. The company has offices in Belgium, Colombia, Cambodia, India and Kenya.
By Sheen Gupta, Research Associate
Sources and Additional Resources
Incofin press release
https://incofin.com/investment-by-incofin-cvso-lets-kyrgyz-entrepreneurs-grow/
Bailyk Finance homepage
https://bf.kg/
Incofin homepage
https://incofin.com/
Previous MicroCapital article on Incofin
https://www.microcapital.org/microcapital-brief-incofin-lends-1-5m-from-fairtrade-access-fund-to-lafaza-to-support-vanilla-farmers-in-sava-region-of-madagascar/
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