Babyloan is an online platform that connects microfinance institutions (MFIs) with social lenders in Europe. MFIs can access interest-free loans through Babyloan to expand their outreach to entrepreneurs. The platform pools investor funds and forwards the monthly balance to partner MFIs. MFIs then input initial data on selected entrepreneurs, receive monthly balances, and provide simple updates on loan repayments. This partnership allows MFIs to access new funding sources while imposing minimal reporting burdens.

1. A project by Expanding low cost funding horizons for MFIs Partnered with

2. What is Babyloan? 1 Online platform that gives MFIs access to free loans from social lenders in Europe, helping them expand their entrepreneur outreach 0. Regular MFI operations 3. Babyloan pools investments and forwards balance (New Loans less Repayments) to MFI each month 4. MFI sends monthly reports through Babyloan to update internet user on the status of their loan 1. MFI selects a number of entrepreneurs. Information on these clients is collected and entered into the Babyloan system, and is subsequently posted on the website. 2. Internet user browses Babyloan.org, chooses an entrepreneur they wish to support, and sends the loan through Babyloan to the corresponding MFI 5. At the end of the loan term, MFI forwards repayment and final report to internet user through Babyloan

8. STEP 3bis. MFIs reports delinquencies 7 Benefits Increased authenticity of site Increased transparency Less automated, more customated Preformatted screen with minimal input data Better Babyloan rating of MFI if MFI dedicates time to reports Social investors feel the site is authentic and are willing to invest more Increased funds for MFI Disadvantages Time spent on identifying delinquent entrepreneur May deteriorate image of entrepreneur if defaulting on loans X Repaid X Repaid X Default Why report delinquencies? Input initial data Receive balance from Babyloan X Provide simple monthly reports Impact measure input

10. Minimising and easing the reporting 9 Once the initial data entry is finished, reporting is quick and easy. Load of reporting 1 2 3 4 5 6 Months Initial data input Monthly reports Impact measure input Load X Input initial data Receive balance from Babyloan X Provide simple monthly reports X Impact measure input

11. Relationship between Actors 10 MFIs General Public €€€ info INCREASED FUNDING Loan tracking software (optional) Reporting Repayment Loans (0% interest)