Objective

The Ministry of Labor and Social Affairs set up the “Mikrokreditfonds Deutschland” in January 2010 to improve access to capital for start-ups and micro-businesses. The aim of the Mikrokreditfonds Deutschland is to establish  in Germany a nationwide offer of microcredits for which 100 million EUR are provided from ESF funds as well as funds from the German government. Until 2015 more than 15,000 loans will be disbursed.

The implementation of the “Mikrokreditfonds Deutschland” is assigned to the GLS Bank with the main task of establishing in Germany the agency network through which the microcredits are channeled. These agencies are called microfinance institutions[1] (MFIs) and guarantee easy and fast access to capital for its respective clients.

Microcredit can empower people with no financial means but enterpreneurial spirit to start their own business. Further, it can be used to prefinance short term contracts as well as support growth phases of small enterprises.

In average each microcredit guarantees or creates up to 1,5 jobs. Therefore, compared to other programmes financed by the government the “Mikrokreditfonds Deutschland” is highly effective and supports commitment and personal responsibility.

Around 40% of the current portfolio is given to entrepreneurs with a migration background. A special focus is also put on female enterpreneurs. The main sectors financed are the service sector followed by food and beverage, retail and artisanry.

[1] These institutions are consulting firms, associations or foundations that are handling most parts of the loan process from client acquisition to client monitoring and loan repayment. Since they have no legal right to disburse credits the loan contract is actually signed between GLS Bank and the client.