FDGA Award 2010

Giordano Dell’Amore Microﬁnance
Good Practices Europe Award 2010
The Experiences of
the Finalists 2010 and
Winners 2009

Giordano Dell’Amore
Microfinance Good Practices Europe Award 2010

“The Exeperiences of the Finalists 2010 and Winners 2009”.
Published by Giordano Dell’Amore Foundation in the framework
of the Project “Microfinance Good Practices Europe Award 2010”.
Editor & Technical Consultant David Berno
Project Coordinator Maria Cristina Negro
Graphic Design www.manolibera.it
Materials developed on the basis of information provided by the finalist institutions.
Photographs related to the experiences supplied by the finalist institutions.
Special thanks to the members of the Award Committee
and Consulta Tecnica of Giordano Dell’Amore Foundation.
Fondazione Giordano Dell’Amore
Via Monte di Pietà, 12
20121 Milan, Italy
Phone +39 02 32168401
www.fgda.org
Milan, Italy
© Giordano Dell’Amore Foundation, 2010

Contents
Foreword, by Federico Manzoni and Philippe Guichandut.........................7
Introduction...........................................................................................................9
The Winners 2009.........................................................................................11
ACAF................................................................................................................................12
PerMicro.........................................................................................................................14
The Finalists 2010..........................................................................................17
Crédal..............................................................................................................................18
Microcredit Foundation Horizonti................................................................................22
Partner MKF...................................................................................................................26
Prince’s Scottish Youth Business Trust (PSYBT)...................................................30
Qredits..............................................................................................................................34
Special Mention.............................................................................................38
PerMicro.........................................................................................................................38
Acronyms & Abbreviations.................................................................39

7
Giordano Dell’Amore Foundation and the European Microfi-
nance Network are glad to present – after the success of last
year edition – a volume that summarizes the experiences that
an international commission judged to be the best among the
applicants to the “Giordano Dell’Amore Microfinance Europe
Good Practices Award”
For this year’s edition Giordano Dell’Amore Foundation decided
to separate the two Awards, International and Europe, and to
announce them in two different moments; therefore we intro-
duce here the finalists for the Europe Award, organized also
this year in collaboration with the European Microfinance Net-
work and associated with the 7th
Annual Conference scheduled
in London on June 24th
and 25th
2010.
Last year’s volume has been considered of great interest by
microfinance professionals, our wish is that this second edi-
tion could again bring about positive effects among the ac-
tors involved in the promotion and growth of microfinance in
Europe: microfinance operators, banks, institutions and civil
society organizations.
This publication compiles the stories and accounts of the
achievements realized by the winners of the first edition
thanks to the prize received, with special emphasis on the
impact on their activities and particularly on the beneficiar-
ies of their work.
This volume is part of the Foundation’s activities: with its
new mission Giordano Dell’Amore Foundation aims to ac-
tivate and gather the skills and resources of the Italian ac-
tors to carry out projects and models of intervention in the
microfinance sector in developed and developing countries,
implemented in compliance with well-established best
practices and able to support the growth and innovation of
the microfinance sector.
As far as the Italian context is concerned, the Foundation re-
news its commitment to contribute to the progress of microfi-
nance institutions in terms of outreach and quality of services,
Foreword
promoting and taking part actively in initiatives devoted to
the reinforcement of the sector: vocational training activities,
workshops, reflection seminars for the exchange of experienc-
es addressed to microfinance professionals, and occasions to
spread and disseminate the knowledge of this important tool
against financial exclusion.
We renew our thanks to the European microfinance operators
for their participation and to the European Microfinance Net-
work for having confirmed its endorsement to the realization of
the Europe Award.
The collaboration between Giordano Dell’Amore Foundation
and the European Microfinance Network has been strength-
ened through the organization of the 6th
Annual Conference
held in June 2009 in Milan: about 350 operators from 30 coun-
tries assisted to the event, for the first time organized in Italy,
that confirmed the importance and the interest of microfinance
as well as the validity of the choice of “networking” to maxi-
mize the impact of our actions.
As a consequence, networking in Europe and in Italy, too:
Giordano Dell’Amore Foundation participates actively in the
life of the Rete Italiana di Microfinanza – RITMI – the Italian
network that brings together 20 Italian microfinance operators.
To conclude, we wish to extend our gratitude to all those
people, numerous indeed, who have believed in our activ-
ity and contributed with their reflections, ideas and advice
to the achievement of this new project started by Giordano
Dell’Amore Foundation: firstly Fondazione Cariplo that with its
contribute makes it possible, and the members of the Technical
Scientific Committee and of the Consulta Tecnica who devoted
their precious time to support our work.
In this document we present the activity of those European
microfinance institutions that contribute to offer socially and
financially excluded people (a condition of disadvantage in-
creasingly common even in countries considered rich) an op-
portunity to access the economic initiative.
by Federico Manzoni, President FGDA
Foreword

8
Giordano Dell’Amore Microfinance Good Practices Europe Award 2010 | Foreword
The European Microfinance Network (EMN) is very pleased
to again be associated with the second edition of the Euro-
pean Award for Good Practices in Microfinance sponsored
by the Giordano Dell’Amore Foundation.
With 88 members in 21 countries, EMN is the leading net-
work in the European Union supporting the development of
microfinance in Europe as a tool for social inclusion and eco-
nomic development. More than ever with the current finan-
cial and economic crisis, microfinance can be an instrument
for growth, employment and social cohesion. By providing
the opportunity for excluded people to obtain access to fi-
nancial services for starting or developing their enterprise or
becoming self-employed, microfinance represents a real al-
ternative for thousands of European citizens. However, in or-
der to respond to the challenge of reaching all the people in
need of microfinance services, the sector needs to grow and
become more and more professional. The growing number
of organizations involved in microfinance activities requires,
more than ever, coordinated efforts to work together and to
share information.
As part of its strategic objectives, EMN believes that the pro-
motion and diffusion of good practices in the European con-
text is one of the elements for ensuring such growth and pro-
fessionalism. There are different ways to share and exchange
such practices. One way for sure is to provide the opportunity
for institutions to make the practices public and to motivate
them into sharing their experiences with others. The establish-
ment in 2009 of the European Award for Good Practices with
the Giordano Dell’Amore Foundation was a big step forward in
that direction. This Award aims to increase the understanding
of the importance of microfinance by the public, to encourage
European microfinance practitioners to share good and trans-
ferable practices in the field of microfinance, innovation and
sustainability and to promote and spread those practices to
other microfinance agencies in Europe.
This second edition takes place within the celebration of the
2010 European Year for Combating Poverty and Social Ex-
clusion, as declared by the European Union. In that context,
particular attention has been given to initiatives with a clear
focus on combating poverty and social exclusion. EMN is
very pleased to see that 13 organizations (nine of which are
EMN members) shared their experiences on the way they
are fighting social and financial exclusion at their level. Too
often, financial exclusion is not perceived as a real issue for
policy makers in the social arena. It’s time that actors work-
ing on a daily basis in the field show what can be achieved
and how getting people out of financial exclusion by provid-
ing them with access to financial services can help them to
become active citizens in the mainstream economy.
This award would not be possible without the strong involve-
ment and contribution of the Giordano Dell’Amore Founda-
tion. EMN would like to take this opportunity to thank the
foundation for its strong commitment to making this award
a success. The collaboration between EMN and Giordano
Dell’Amore Foundation represents what the network wants
to promote among its members; a strong partnership where
members are the key players in promoting the network it-
self and the other members. Such a strong involvement by
members is a key to the success of EMN becoming a real
membership based organization.
EMN is convinced that this second edition will be as suc-
cessful as the first, and that the award will remain an excel-
lent opportunity for organizations to learn from each other.
by Philippe Guichandut, Executive Director EMN

9
The second edition of the European Award for Good Practices
in Microfinance sponsored by Giordano Dell’Amore Founda-
tion in collaboration with the European Microfinance Network
has three main objectives:
to awaken public opinion in Europe to the importanceƒƒ
of microfinance as a tool able to foster the economic
initiative of people excluded from the traditional finan-
cial system;
to encourage the exchange of experiences and the sharingƒƒ
of comments and in-depth analyses within the community
of microfinance in order to raise the level of professional-
ism of the actors involved and to favor a growth path that
considers aspects like innovation, sustainability and social
impact of microfinance interventions;
to highlight and disseminate the best experiences of mi-ƒƒ
crofinance that combine innovation and sustainability, re-
warding the ability to systematize the principal features
of the intervention model so as to allow its replication in
different contexts.
In this second edition of the Award we focus on four prin-
cipal aspects corresponding to the criteria chosen for the
evaluation of the applications:
theƒƒ innovative character of the experiences submit-
ted, that is to say in which way the applicant has trans-
formed a traditional practice with the offer of a new
product or service, or through a new approach, the use
of a technological device or the implementation of a
groundbreaking idea;
the mechanisms provided to assure theƒƒ sustainability of
the microfinance services offered, that is whether the ap-
plicant is going to attain a certain degree of sustainability or
he is developing a concrete strategy to achieve it;
the actual and potentialƒƒ impact of the microfinance initia-
tive with specific focus on poor and marginalized people;
theƒƒ replication/transferability process, namely the way in
which the initiative submitted could be replicated in differ-
ent contexts to solve the same kind of problems.
Introduction
In consideration of the fact that the European Union has de-
clared 2010 the European Year for Combating Poverty and
Social Exclusion, particular attention has been paid to those
initiatives explicitly focused on the fight against poverty and
social exclusion.
The Award, open to all European organizations operating for
more than twelve months, received pre-registration forms
from 14 microfinance institutions, but only 13 out of them
submitted their proposal within the deadline of February 7th
,
2010, as specified by the Terms and Conditions. The proposals
described microfinance experiences in 10 European countries,
namely: Albania (2 cases), Italy (2 cases), Spain (2 cases), and
one case each for Belgium, Bosnia & Herzegovina, Hungary,
Macedonia, Netherlands, Scotland, Turkey.
Regarding the kind of organizations four of them are NGOs:
Foundation Horizonti, Fundacion Laboral WWB, Foundation
Primom, Kahramanmara Microcredit Office; three are Foun-
dations: Qredits, Partner MKF, Foundation Magdala; two are
Cooperatives: Mag Roma, Credal; two are Non-Bank Finan-
cial Intermediaries: PerMicro, Besa Fund, one is a Limited
Company: PSYBT and one a Joined Stock Company: First
Albanian Finance Development Company.
The majority (7) of the applications received presented the
institution as a whole together with its overall activities,
four proposals outlined a specific approach to microfinance
activities while two were relative to specific products.
The applications mainly targeted the unemployed and fo-
cused on economic support to microentrepreneurs or to
employment creation. Three proposals focused only on a
particular microfinance product or activity.
After having examined, analysed and discussed each single
case, the Award Committee selected five finalists. The Com-
mittee believes that each of the five selected experiences
offers an interesting approach and stimulating ideas that
could be transferable to similar realities.
Introduction

10
Giordano Dell’Amore Microfinance Good Practices Europe Award 2010 | Introduction
The five finalists are:
Crédal, Belgium, for its long path of working in name of
an alternative economy, closer to the people, with a social
dimension and a fair approach, finding in the public institu-
tion a strong support.
Microcredit Foundation Horizonti, Macedonia, for its
innovative approach for providing sustainable financial serv-
ices to the Roma community.
Partner MKF, Bosnia Herzegovina, for its well-structured
organization able to deliver its financial services to a rel-
evant number of clients in the whole Bosnia-Herzegovina.
PSYBT, Scotland, for its approach constantly oriented to
improve the youth entrepreneurial spirit and culture through
a unique mixture of private and public supporters.
Qredits, Netherlands, for its innovative approach oriented
to sustainability, based mainly on the use of IT to automate
processes, maximize efficiency and transparency and to tar-
get the beneficiaries.
A Special Mention has been awarded to PerMicro, Italy,
winner of the “Italy Award” in the 2009 edition and running
again this year, to reward the growth path towards sustain-
ability they have undertaken and for the pioneering part-
nership agreements they have established with the private
banking sector during the past year.

11
We present here past year winners’ accounts of activities subsequent to the
awarding of the prize. We asked the winners to tell us the experiences, and
the impact of last year prize on their activities.
The Winner of the Europe Award 2009 was ACAF (Spain) rewarded for its
innovative approach through Self Financed Communities.
The Winner of the Italy Award 2009 was PerMicro (Italy) rewarded for its
efficient newly established microfinance institution in Italy.
The Winners 2009

12
Giordano Dell’Amore Microfinance Good Practices Europe Award 2010 | The Winners 2009
ACAF
The Association for Self-Financed Communities (ACAF) is an NGO founded in 2004 aiming to con-
tribute to local community development through the creation of SFCs.
The SFC (Self-Financing Communities) model allows low income – and even middle income – peo-
ple to access small credits and small insurances while building stronger communities. Each SFC
can be composed of 10 to 50 people, who, through the investment of small sums of money, become
the owners and customers of the organization. SFCs allow the community to invest in itself by
providing services to its members, such as small credits and small insurances, while generating
revenue through the interest on the loans. Our model is innovative because, unlike most financing
models for poorer communities that use external funds, the SFCs use community (or internal) funds
to provide its services. Additionally, unlike traditional microfinance models, the SFCs allow the
microcredits to be provided for any use, not just entrepreneurial actions, helping poor individuals
to mitigate fluctuating incomes and constant financial needs.
The SFC model is based on traditional practices widely used in poor communities to satisfy finan-
cial needs. It is rooted in cultural values, which makes it easier to be accepted than traditional mi-
crofinance methods. The SFC model incorporates the traditional principles of microfinance, giving
poor individuals access to funds, with the principle that the poor are able to support themselves.
The model integrates people into society, both socially and economically, in a self-sustainable
way, because every SFC relies upon its own members from the very beginning, and encourages
the entrance of new members into the group, since new members means more investors and more
borrowers, which in turn, means higher returns.
Initially, the methodology is very simple, and the initial financial investment serves as a hook
to pull the individuals into the SFC community through a social investment as well. After
some months, the small initial investment grows and little by little local credit demands be-
come increasingly satisfied. After a while, members can introduce new services that include
agreements with private companies like banks and insurance companies that design special
services for that population.
ACAF works mainly in Catalonia and in 6 years, it has created 79 SFCs with more than 3500
indirect beneficiaries.
CAF La Gaitana

13
ACAF
The achievements of ACAF thanks to the ‘Europe Award’ received from Fondazione Giordano
Dell’Amore include 10 new SFCs (known as CAF in Spanish):
CAF CICAFƒƒ with 8 Spanish members, students interested in knowing more about our model,
who meet every month in Barcelona.
CAF PYƒƒ with 7 members from Paraguay who meet every month in a city called Molins de Rei
near Barcelona.
CAF Wikicafƒƒ with 10 members coming from different countries who meet every month in
Barcelona.
CAF Arepa con todoƒƒ , the first group of Colombians who meet every month in Barcelona.
CAF l’Elianaƒƒ with 12 members from Colombia and Uruguay, who meet in Valencia.
New CAF in Valenciaƒƒ with a group of members from Venezuela and Colombia who are work-
ing now in defining their internal rules.
CAF Abriendo Caminoƒƒ the first group inaugurated in Las Palmas de Gran Canaria thanks to
the support of Caritas Canarias.
CAF Fraternidad Africanaƒƒ with 12 members from Cameroon, Congo and Nigeria who meet
every month in Santander.
CAF Talude em Acçãoƒƒ – 6 members, all of them second-generation immigrants from differ-
ent African countries but with Portuguese nationality. They meet in Catujal, Loures.
CAF Casa da Guinéƒƒ – 15 Guinean members who meet in Lisbon.
During 2009 and thanks to the ‘Europe Award’ we have been able to expand the methodology
to three new cities in Spain: Valencia, Santander and Las Palmas de Gran Canarias and we
keep working in Madrid and Catalonia.
During 2009 we have consolidated our expansion to Por-
tugal. Stone Soup took over the project in Portugal. They
were responsible for seeking funding, selecting the staff
responsible for the project and translating all the material.
Considering the fact that ACAF aims to expand to other coun-
tries in Europe, it has been an important achievement to ex-
pand to Portugal since the methodological transfer has served
as a pilot for transferring to a European country. Stone Soup has
pledged to make a report for the entire transfer process that will
serve as a methodological basis for initiating similar processes
with other European organizations.
In 2008 we started training a new SFC Promoter from Chile who has
been able to inaugurate 2 more SFCs in his country during 2009.
Moreover, we will start training a new European association, Au-
tonomia from Hungary, in order to create new Self Financed Commu-
nities in this country. We are working also to expand the methodol-
ogy to France and Germany.
ADESC keeps working in the methodology in Senegal and has already
42 SFCs opened in different cities of the country.
Thanks to the support given by Fondazione Giordano Dell’Amore, the
SFCs methodology is already present in 3 different continents and 2 Eu-
ropean countries.
The information about the SFCs will be published in our new website. In the last quarter of
2009 we started working on our new website to change its design as well as the contents
displayed. In the new website, which we will probably be presented during the July meeting,
we plan to include information in six different languages.
The Award has also allowed the ACAF team to grow and we count already on 10 members to
keep improving and expanding the methodology.
ACAF received in 2009 the Mercedes Conesa Award for Best Social Initiative of the year given
by the Catalan journal El Periódico and has been present in different media including different
Spanish newspapers.
CAF PY
CAF Dade Leñol

14
Giordano Dell’Amore Microfinance Good Practices Europe Award 2010 | The Winners 2009
PerMicro
PerMicro is an Italian Non Banking Financial Intermediary (authorized ex. art. 106 T.U.B. by Banca d’Italia) created in Turin in 2007
and specialized in microfinance products.
Its founding members are two important social organizations, Fondazione Paideia (a foundation operating in the area of social wel-
fare - www.fondazionepaideia.it) and Oltre Venture (the first Italian social venture capital company - www.oltreventure.com). New
shareholders are the fourth Italian banking group, UBI Banca (www.ubibanca.it) and a banking foundation, Fondazione Sviluppo e
Crescita - CRT (www.fondazionecrt.it).
PerMicro’smssionistocontributetothefinancialinclusionofthemostvulnerablepartsofsociety,especiallyimmigrants.PerMicro
deliversmicrocreditsupto15.000eurotounbankablepeople,tostartordevelopsmallbusinessesandtoimprovelivingconditions,
within an innovative “network credit” operational scheme.
Recipients must belong to formal or informal reference networks (such as associations, ethnic communities, developmental agen-
cies, parishes, cooperatives, or consortiums, etc.), ready to guarantee their reliability through a reference letter and to follow them
during their growing path, side by side with PerMicro staff. The social network works as the best guarantee for developing and
maintaining confidence with clients and reaching a high social impact.
2009, a year of deep changes
In March 2009, when it obtained the authorization as defined by art.106 of TUB (Testo Unico Bancario) from the Central Bank,
PerMicro started to deliver microcredits directly to its clients: while continuing its previous activities, PerMicro can now manage
entirely the relation with its customers, from the first contact to the case examination and evaluation, to the disbursement of
microcredit and the monitoring until the complete repayment of the instalments. That is the outstanding turning point in PerMicro’s
life, which brought a succession of evident transformations and achievements, as well as the affirmation of a new successful
operational model in the Italian microfinance context.
Internal organization: from the process standardization to the IT innovation
The new legal form forced PerMicro to review its internal organization, starting from the Administrative Area. Two people were
hired in order to follow all issues related to accounting, human resources management and all duties imposed by the Italian Cen-
tral Bank. A new IT system has been put in place in order to manage the internal accounting on the one side, and the microcredit
disbursement and collection activity on the other. At the same time, the Product Area has been enlarged with two new people
in charge of the preliminary evaluation of the microcredit requests. This saving of time allowed the Product Area to define and
standardize PerMicro’s internal procedures. A set of documents closely connected to the credit process and to the management of
clients (from personal data records on to monitoring of the activities) has been studied and formalized. The use of such documents
has consequently reduced the time necessary for the inquiry and evaluation phases and brought down the relative costs.
Commercial development
In order to become more and more rooted locally and to ensure proximity and constant monitoring to clients, PerMicro started to
develop a network of branches nationwide. Branches in Roma and Pescara became operational in 2008, while 8 more have been
Client’s shop

15
PerMicro
Below, traditional food seller
opened in 2009 in Turin, Milan, Genoa, Brescia, Bergamo, Rimini, Vicenza and Florence. Considering a lapse of one year in order to
work at full performance, at the beginning of 2010 four out of the ten branches run steadily and the others are expected to reach
the same result by the end of the year.
Project management and research
During the last year PerMicro started to develop some projects in partnership with public institutions (e.g. districts, municipalities,
etc.) in order to build a steady social and institutional network and spread microfinance visibility. The results of such a work can
be found in the “Progetto C.A.S.A.” in collaboration with the Asti municipality for the lease start and in the project “O la borsa o la
vita!” for the banking alphabetization, in partnership with a local consumer association. Other collaborations with the municipali-
tiesofIvrea,Milan,Vinovo,CarmagnolaandVerbaniaarestillinprogress.Furthermore,attheendof2009PerMicro,inpartnership
with Microfinanza Srl, won the call for tenders of Sviluppo Lazio and today works actively for the microfinance programme in the
Lazio region.
Moreover, thanks to a research grant financed by Fondazione CRT (Progetto Alfieri), PerMicro started a collaboration with the
Faculty of Business and Economics of the University of Turin. The research aims at defining a credit scoring model that can assign
a score to the applicant’s credit reliability and then facilitate the standardization of the evaluation process of the single microcredit
request by the Credit Committee. In this context, PerMicro started to collaborate with the National Credit Bureau in order to put
in place a joint credit scoring model dedicated to microcredit. In fact, one of PerMicro’s declared objectives is the generation of a
system of scoring and client management that will integrate the specific experience acquired in the inquiry phase with the results
obtained, on to the functions of office automation.
Institutional relations
During the last year PerMicro actively cooperated with the Italian Banking Association (ABI), the Central Bank and Ministero del
Tesoro in order to observe the microfinance market evolution and its social impact in Italy.
Over the last months of 2009, PerMicro has been in contact with the European Investment Fund: on the one side, PerMicro is one
of the 15 selected microcredit providers that expect to receive the technical assistance issued by the JASMINE programme, on the
other, it actively works with the Financial Support Department in order to explore the equity investment opportunities.
Achievements
Since the beginning of its activity, PerMicro aimed at creating a consolidated network of local partners: PerMicro visited
more than 1.600 associations, parishes, consulates and local institutions, involving them in the credit process and in the
recipients’ activity management after the loan disbursement.
Furthermore PerMicro took part in a number of events such as ethnic festivals, third
sector fairs and exhibitions and supported sport competitions and tournaments for
immigrants to foster its link with this part of the population.
Up to March 2010 PerMicro provided 542 microcredits out of 3.800 total contacts
(14% of the requests). Nearly half of the requests came from Italians, followed by
Africans (23%), Asians (11%, mainly Filipinos) and Eastern Europeans (11%, mainly
Romanians). The average amount granted is about € 5.490 (minimum €2.000 - maxi-
mum €15.000) for a total of € 2.975.688 disbursed. More than two thirds of the loans
were disbursed to foreigners (77%), especially Asians (27%), Africans (22%) and East-
ern Europeans (22%).
Thanks to PerMicro’s business incubator, nearly one third of all microcredits have been
employed in the start-up or development of small businesses (28%). Up to now, 151
new entrepreneurs could enter the local labour market, primarily in the trade sector.
Due to the strengthening of the marketing and communication strategy, the number
of microcredit requests has considerably grown up to 20% on a weekly base. At the
same time, the larger number of branches on the territory has boosted the production:
the number of microcredits disbursed has doubled, from 5 to 10,3 microcredits per week.
This is an encouraging result in view of the achievement of operational and financial
sustainability.
Although much has been done... the way to sustainability is full of important challenges.
Every day we work hard to reach our financial and social goals!

17
After having read, analysed and discussed each single application, the
Award Committee selected five finalists. The Committee believes that
each of the five experiences offers an interesting or innovative approach
and ideas that could be transferable to similar realities. The five institu-
tions selected are :
Crédal, Belgium - for its long path of working in name of an alternative
economy, closer to the people, with a social dimension and a fair approach,
finding in the public institution a strong support.
Microcredit Foundation Horizonti, Macedonia – for its innovative ap-
proach for providing sustainable financial services to the Roma community.
Partner MKF, Bosnia Herzegovina – for its structured organization able to
deliver its financial service to a relevant number of clients in whole Bosnia
Herzegovina.
Prince’s Scottish Youth Business Trust (PSYBT), Scotland – for its ap-
proach constantly oriented to improve the youth entrepreneurial spirit and
culture through a unique mixture of private and public supporters.
Qredits, Netherlands – for its innovative approach, oriented to sustainabil-
ity, based mainly on the use of IT to automate processes, maximize efficiency
and transparency and to target the beneficiaries.
A Special Mention has been awarded to PerMicro, Italy, winner of the
“Italy Award” in the 2009 edition and running again this year, to reward
the growth path towards sustainability they have undertaken and for the
pioneering partnership agreements they have established with the private
banking sector during the past year.
The Finalists 2010

18
Giordano Dell’Amore Microfinance Good Practices Europe Award 2010 | The Finalists
Crédal SCRL - FS
Project Name
The Social Credit, another vision of credit.
Type of organization:........................... Alternative Financing Cooperative
Location:..........................................................Belgium – Louvain la Neuve
Founded in:................................................................................................1984
Mf products offered:..... Traditional Microcredit & Social Customer Credit
Portfolio:............................ Total: € 16.119.764 - Social Credit: € 1.724.161
Av. Loan size:......... € 3.368 (Walloon region) - € 2.522 (Brussels Region)
% of women clients:..............................................................................53,5%
Initiative Presented for the Award
Crédal is a Belgian financing cooperative that offers “social consumer
credit” since 2004, a way to offer access to loans and credit educa-
tion to financially excluded people.
www.credal.be
Team

19
Crédal SCRL - FS
Institutional Profile
History
Crédal is an alternative financing cooperative founded in 1984 with a specific social vision: to promote
a fairer society and to reinforce social cohesion. Its main objective is to offer savings products for
social purposes and to support social projects through credit and counselling. Crédal first activity was
to finance non-for-profit organizations and cooperatives through various traditional credit mechanisms
at low interest rates. In 2000 Crédal started a microcredit programme (business start-up micro-loans)
for credit excluded people. In 2004 Crédal launched another microfinance product: the Social Consumer
Credit (consumer credit in connection with a project of life for credit excluded people).
Structure
Next to the three credit activities (loans for cooperative and non-for-profit organizations, start-ups
microloans and social consumer credit), Crédal offers also consultancy for the social economy sector
(Crédal Consulting agency) and a training programme for women who wish to create their own busi-
ness (AFFA Programme).
In 2009, Crédal is constituted by:
Crédal SCRL-FS: Crédal SC collects the shareholders funds. This structure grants credits. The total„„
portfolio of the cooperative is € 16.119.764.
Crédal asbl: this entity gathers the consulting activities for the social economy sector„„
Crédal Plus asbl: this association gathers the activities of support and advice for individuals facing„„
social difficulties and with low incomes.
Since2004,Crédalhasprovided1.240socialconsumercreditsandhasachievedaportfolioof€1.724.161
for social consumer credit. Currently, 6 employees are working on the social consumer credit activity.
Governance Structure
Crédal SC consists of 1.400 shareholders who are integrated into the democratic life of the
cooperative by electing its management board. All credits are granted by credit committees
equally formed by financial and social experts.
Target Clients and Operational Area
Crédal’s mission statement is based on three main objectives:
to support social projects undertaken by individuals who are excluded from the commercial bank-„„
ing system at “moderate” interest rates;
to support initiatives undertaken by disadvantaged individuals – Belgian or migrants;„„
to offer “social” savings facilities on the basis of trust and transparency.„„
Products and Services
Crédal offers two microcredit products: social consumer credit since 2004 and traditional microcredit –
for business start-up - launched in 2000. Social credit is aimed exclusively at people with low incomes
to support basic needs such as transport (cars, etc), trainings or health. Loan’s amount ranges from
€ 500 up to € 10.000, with a repayment period of 48 months and an interest rate of up to 5%.

20
New credit products are under development: social green loans and loans
to migrants (to ease family reunification procedures).
Funding Sources
Crédal raises funds mainly from its stockholders’ equity, involving the
public sector and social workers. Crédal covers a large part of its op-
erational costs with subsidies from the Walloon Region, the Brussels
Regions and Dexia Foundation – € 460.000 out of a total of € 530.000.
On the left, Veronique Lesobre,
a driving client
Below, event
“Having my own car makes the difference!”Veronique Lesobre: My situation was really difficult. My husband and I are separated since 2005 and conse-
quently I was raising my four children alone. Unemployment benefits were my only income. In 2007 Sofil, a
securities service company contacted me as they were looking for cleaning ladies. One of the problems was that
I needed to have a car because I was required to drive from one customer to another. Without a car, there was
no possibility of employment… I therefore called my bank and many others, I contacted many credit companies
pretending to lend money to someone…but my situation shut all the doors. Sofil’s Director was the one who told
me about Crédal.
I had a first call-contact and then two meetings at Crédal’s local offices. I was questioned from A to Z. I explained
my situation, I gave all the information about my incomes, my expenses, my rent, … I had always paid all my
bills so I have never had any debt. I had to be very transparent. On the basis of my budget, they lent me € 4.000
that I had to reimburse over a period of 36 months i.e. € 120 a month. The idea was to find a small car around
€ 2.500/3.000 and to keep the difference to pay taxes and insurance. I found a 13 years old second-hand car in
a perfect state. I started to work beginning of January. I am proud to work again and my car is giving us a lot of
independence.

21
Crédal SCRL - FS
Innovation
Crédal’s innovation is its evergreen idea based on a fairer credit aimed at fi-
nancially excluded people. Crédal’s activities are based on four clear axes:
To be poor is expensive;ƒƒ
Only the rich get richer;ƒƒ
To use a credit as a tool to fight over-indebtedness;ƒƒ
To facilitate access to public grants thanks to finance.ƒƒ
Sustainability
The sustainability is achieved through a good mix of elements: the capital used
for social consumer credit represents a marginal part of the cooperative funds; a
guaranteefromtheWalloonregionon75%ofthegrantedamountsallowsCrédal
to keep a low credit interest rate (5%); public and private long term partnerships
supportCrédal’sactivities.Withitscurrentfinancialresources,Crédalmayputan
upper limit in terms of outreach to avoid a quality decline of its work.
Selection criteria
Financial Achievements
Dec 07 Dec 08 Dec 09
Portfolio at Risk 11,10% 11,29% 7,14%
Write-off Ratio 0,2% 0,4% 0,4%
Portfolio Yield 5,00% 4,99% 4,87%
Debt to Equity Ratio 0% 0% 0%
Operating expense Ratio 81,34% 86,71% 91,36%
Cost per Borrower € 1.523 € 1.916 € 1.087
Staff Productivity 87,31 62,86 80,40
Return on Equity 9,80% 5,69% 2,18%
Return on Assets 9,80% 5,69% 2,18%
Operational Self-Sufficiency 122,94 112,44 107,31
Impact – Outreach
Over the last year (2009) Crédal increased largely its outreach (portfolio and
number of active clients), keeping the focus on its target clients: women
(49%), migrants (20%) and youth (18%). 60% of clients that were granted a
social consumer credit live under the poverty line in Belgium (860 €/month).
The average loan size is approximately € 4.300.
Replication
Crédal’s social consumer credit is not easy to replicate in other countries without
public institutions’ awareness. And usually it takes a long time.
However, two MFIS visited already Crédal to learn from and share this best prac-
tice (Hefboom and ADIE). In order to share its experience, Crédal joined the Euro-
pean project MULFI (Mutual Learning on Financial Inclusion) in 2009, promoting
the social consumer credit with a large consensus.
Outreach Achievements
Active Borrowers 438 635 1035
Women 54% 56% 49%
Migrants, Minorities 19% 29% 20%
Youth 16% 20% 18%
Below Poverty Line 66% 55% 60%
Average Disbursed Loans € 2.792 € 3.208 € 4.291
Portfolio € 477.477 € 705.788 €1.707.946
Number of Branches 5 6 6
Staff 2,97 4,50 5,95
Loan Officers n.a. n.a. n.a.
Drop Out Ratio n.a. n.a. n.a.

22
Microcredit Foundation Horizonti
Project Name
Innovative approaches for providing sustainable
financial services to the Roma community in the
Republic of Macedonia.
Type of organization:.............................................................................................NGO
Location:.................................................................................................... Macedonia
Founded in:............................................................................................................ 2000
Mf products offered:...................................Microcredit for enterprises and families
Portfolio:...................................................................................................... € 2.729.508
Av. Loan size:......................................................................................................€ 1.049
% of women clients:............................................................................................100%
As a poverty-focused MFI, Horizonti from the very beginning indentified the
Roma community as a potential market to serve, which is in line with the
organization’s mission and its social goals. This initiative presents an innova-
tive approach for providing sustainable financial services to the Roma com-
munity, the most vulnerable, marginalized and socially excluded group in the
Republic of Macedonia.
www.horizonti.org.mk
Horizonti agricultural client

23
History
Horizonti was created in January 2000 as a microfinance programme of Catholic Relief
Services - USCC in Macedonia. The project primary goal was to provide access to finance to low-
income women entrepreneurs. In addition, project long-term goal was to create a professional
and locally-registered microfinance institution. In July 2005 the programme spun-off from CRS by
registering a local NGO (Foundation) according to the Law on Citizen’s Associations and Founda-
tions in the Republic of Macedonia.
Structure
The programme started to operate in the greater
Skopje area, and eventually expanded its opera-
tions in seven other cities throughout the coun-
try, having 65-70% Roma population coverage. At
present, Horizonti has 39 staff members, of which
9 are representing the senior management and ad-
ministration and the rest are branch staff includ-
ing branch managers, loan officers (total of 20) and
branch support staff.
Horizonti is an institution with strong commitment
for achieving the social goals and creating positive
impact for its clients. The organization is strongly ori-
ented to understand client’s needs and preferences.
Horizonti Board of Directors is composed of 5 independent individu-
als nominated by the Founder (CRS/Macedonia).
In general, Horizonti clients are women microentrepreneurs with an
existing business in the retail, services, small production and agri-
culture sectors. Those clients are disadvantaged people with limited
or no access to financial services. In terms of location, clients are
divided into two categories, urban and rural. Urban clients are mainly
people with small businesses in the retail, services and small produc-
tion sectors; their loan purpose is mainly working capital. On the other
side, 100% of Horizonti rural clients are individual farmers with small
farming activities, cattle-breeding and crop production, whose needs
are primarily for purchasing seeds, fertilizers and other materials as well
as buying additional cattle and purchase of equipment. In terms of the
business status, only 50% of Horizonti clients, excluding the farmers,
have registered business according to the existing laws in Macedonia.
This is not the case of Roma clients of which approximately 90% of the
businesses are non-registered.
Delivering certificates- Business traning for
Roma women entrepreneurs
Retail client

24
Horizonti financial services are short and long-term business
loans to microentrepreneurs and small housing loans for recon-
struction and repairs. In addition, Horizonti activities include
providing consultancy services to clients and access to non
financial services provided by its partner organizations. Hori-
zonti’s loan products are divided into two categories: small
business loans and housing loans. Loans amount range from
€ 250 up to € 4500. In terms of methodology, it offers group
and individual loans. Horizonti delivers its microloans through
bank intermediation.
Funding Sources
Horizonti has launched its microfinance programmes with
the support of Catholic Relief Service-USCC. The institu-
tional capital (around € 1.9 mil as of Dec 2009), consisted
of grants provided during the period 2000-2005 by the fol-
lowing main donors:
Caritas Norway – € 1.1 mil„„
Catholic Relief Services – € 400.000„„
Open Society Institute (OSI) and CEB – € 400.000„„
In addition, the remaining funding sources (around €1.6 mil) is debt financing, through:
€ 500.000 commercial loans from local banks„„
€ 600.000 soft loans (concessional rate) from local development organizations„„
€ 500.000 soft loan (concessional rate) from SEDF„„
Client story: Ljubica Selim
Ljubica is a 43 years old mother of two. She was one of the first Horizonti clients, in March 2000. Ljubica started
her business in 1991, dealing with baby’s underwear, investing just a few dollars.
She used all her loans, currently 11, to develop her business by renting well located stands at the market and
diversifying her products, in order to be more competitive. Nowadays Ljubica has regular customers and works at
the market with all her family.
She is very thankful to Horizonti for trusting her ideas and plans, and for supporting her to achieve good results.
Ljubica expects a future expansion of her business, in order to offer a job to other people.
Client story: Zorica Banskolieva
Zorica Banskolieva is a 22 years old woman who lives in the rural area of Strumica, with her husband. She contin-
ues the family tradition: agricultural production. Zorica found out about Horizonti from other existing clients.
Zorica appreciated the idea of the solidarity group model, and she didn’t have any problem to form a group with
other people from her village. She borrowed 60.000 MKD (€ 1.000) from Horizonti to buy seeds for lettuces, pota-
toes, tomatoes, cucumbers and to buy rubber pipes.“Horizonti is the first financial institution that entered in our village and offered us financial support. I’m very satis-
fied of the relationship created with Loan Officers, and hope for long-term collaboration”, Zorica said.
Horizonti client - mechanical services

25
Innovation
Horizonti innovation lies in the specific approaches implemented to provide
continuous access to finance to Roma women clients and ensure a good
client’s loyalty.
The innovative approach in accessing to this target group consists of: lo-
cating operations in Roma community; recruiting Loan officers who are not
prejudiced against Roma people; developing a specific method of communi-
cation; hiring Roma staff.
The introduction of the group lending product was not enough in itself to en-
sure a successful outreach within the Roma community.
Sustainability
ThesustainabilityofthisinitiativeisdeterminedbythenumberofpotentialRoma
clients that join this programme (Horizonti succeeded to reach 35% of Roma
householdsintheareawhereitoperates),bythehighretentionrateofthisgroup
(41% of active Roma clients are above a 6th loan cycle or have been for at least
4 years with Horizonti, and 27% are above a 10th cycle or have been for at least
6 years with Horizonti, which is much more than other Horizonti clients), and by
a good repayment rate (97-98% for the period 2000-2007, 93- 94% over the last
two years due to the economic crisis).
The criteria for measuring sustainability, including financial sustainability, are
verified through the clients’ retention and repayment rates. From the above we
gather that sustainability was achieved as Roma clients demonstrated strong
willingness to continue borrowing and keeping correct repayment records.
Selection criteria
Write-off Ratio 1,75% 1,98% 2,3%
Portfolio Yield 31,77% 28,57% 23,77%
Debt to Equity Ratio 0,59% 1,07% 0,95%
Cost per Borrower €157 €141 €126
Staff Productivity 150 157 155
Return on Equity 5,57% 2,49% 2.4%
Return on Assets 3.57% 1.35% 1.2%
Operational Self-Sufficiency 120.8% 106% 102%
Impact – Outreach
With this initiative, Horizonti succeeded to achieve its goals in the area of
poverty reduction and women empowerment. The fact that 100% of Roma
clients are women is one of the greatest achievements in this community,
taking into account the discrimination that exists in the region. Another
positive impact on this population is the improvement of literacy of Roma
women through the assistance provided by Loan officers so women are
able to sign the loan contracts and other documents, and feel more com-
fortable with financial transaction records.
The best evidence of the success of this initiative are the results achieved
since the inception or for the period March 2000 – Jun. 2009.
Replication
Thereplicationofthismodeltoprogrammesinothercountries/regionsispossible
but with the following pre-conditions:
Making quality assessment of the general position of Roma population within1.
the country/community;
NeedforstrongcommitmentbytheMFI’stopmanagementtoservethispopulation;2.
Select, train and hire Loan officers that can work and communicate with this3.
population.
Horizonti’s long-term experience shows that the staff, or Loan officers in particu-
lar, is the key factor for success in this population outreach. Designing just the
right loan product that suits the needs and repayment capacities of Roma client’s
businesses is not sufficient to ensure long-term relationship and sustainability.
Roma Community Outreach
No of Roma Clients Reached 2.834
% of Women Clients 100%
No of Loans Disbursed 11.610
Value of Loans Disbursed € 6.55 mil.
Average Loan Amount € 564
No of Active Roma Clients, June 2009 1.182
% of Roma Clients of Total Clients 39%
Active Borrowers 2.853 2.976 3.044
Women 100% 100% 100%
Migrants, Minorities 37% 38% 39%
Youth 14% 14% 14%
Below Poverty Line n.a. n.a. n.a.
Average Disbursed Loans € 953 € 1.105 € 1.091
Portfolio € 1.901.640 € 2.465.836 € 2.729.508
Staff 35 39 39
Loan Officers 18 19 20
Drop out Ratio 15.4% 16.8% 17.7%

26
Partner Microcredit Foundation
Project Name
Overall innovative approach in delivering microfinance.
Type of organization:........................................................... Non Profit Foundation
Location:..............................................................................Bosnia & Herzegovina
Founded in:...........................................................................1997 (2001 as Partner)
Mf products offered:.......................................Business loans and housing loans
Portfolio:................................................................................................€ 68.657.049
Av. Loan size:.................................................................................................€ 1.618
% of portfolio to women:...............................................................................44.2%
Partner is a microcredit non-for-profit foundation, multiethnic, inter-entity
with 59 offices in Bosnia Herzegovina. The programme presented consists
on a new way of providing financial services to microentrepreneurs and to
the population, with a focus on rural areas.
www.partner.ba
(1€ = 1,95467 BAM at 30.12.2009)
(1 BAM = € 0,5115 at 30.12.2009)

27
History
The operations began in April 1997 when the European branch of Mercy Corps entered into
an Agency Agreement with the Local Initiatives Department (LOIN). After the signing of this
agreement, Mercy Corps established the Economic Development Department in Bosnia and
Herzegovina, which was registered as a local microcredit organization on December 11, 2000
and continued operating under its new name, Partner Microcredit Organization on January 01,
2001. After the passage of a new Entity Law on Microcredit Organizations in 2006, Partner
transformed into a microcredit foundation.
Structure
Partner is very dedicated and constantly promoting edu-
cation among the staff. During the year 2009, a total of
463 employees received some kind of training, education
or attended seminars on different subjects (some employ-
ees attended more than one training). Partner is also co-
financing formal education of its employees: 40 employ-
ees on graduate studies, 12 employees on post-graduate
studies and 1 employee on doctoral degree.
The Board of Directors comprises five members. It was
established in July 2007 and it coordinates all activi-
ties in accordance with the Statute of Partner Micro-
credit Foundation.
In addition to the Head Office in Tuzla, Partner has 59 offices across the whole Bosnia and Herze-
govina, serving clients in over 100 municipalities. Out of a total of 24 branch offices, Partner’s team
of loan officers cooperates and approves loans in the whole Bosnia and Herzegovina.
The target group suitability criteria were defined as follows: the value of initial business capital
may not exceed €10.230 (BAM 20.000); the income per household member may not exceed €179
(BAM 350); and the number of persons employed in the business may not exceed four persons,
including the client.
Partner’s unique approach and focus on communities straddling the former demarcation lines
of the 1992-1995 war ensures service provision to the populations that suffered the most. It
also enables clients to use services through offices in numerous locations in case they decide
to return to their pre-war homes. Partner provides low-income entrepreneurs and women
with individual loans both for registered and unregistered businesses. Partner’s clients are
returnees, displaced persons and resident population. 73.54% of the total number of loans
was disbursed to rural clients.
Partner is devoted to preventing clients’ overindebtedness, by providing different types of
education to its clients (eg. financial education), promoting positive credit history (brochures,
On the other page, picture of our staff from
Zivinice near Tuzla
Below, client receiving award on the training
of financial education for poor people “Plan
your future”

28
leaflets). Moreover, Partner has a very developed systematic way
to conduct clients’ assessment and affordability.
Loans are designed for agriculture purposes, business improve-
ment, housing, liquidity and commodity. Loans amount range from
€ 255 (BAM 500) up to € 5.115 (BAM 10.000) with an interest
rate ranging from 18% up to 29%. Partner has limited clients’
charging with no hidden costs and is one of the very few MFI
that cancelled upfront fees and penalties for delayed payments.
Partner has very competitive prices within the country context
(the country average portfolio yield is 25.3%; Partner’s portfolio
yield is 192%).
Funding Sources
At 31 December 2009, Partner had at its disposal a capital of 41
million BAM, of which 8 millions of grant capital. Based on the
credit agreements signed, Partner has 130 million credit obliga-
tions. From 1 January 2009 to 31 December 2009, Partner Micro-
credit Foundation disbursed a total of 28.285 credits amounting to
BAM 74.535.537.
Above, an opening ceremony of our branch
in the city of Zenica
Right, Lisica Dragan, a client
Dragan, the story of a Golden ClientLisica Dragan, from Laminci village, near Gradiška, a small town at the Croatian border, has been a long-time cli-
ent of Partner. Hard-working people living in the fertile Lijev e field have traditionally been involved in agriculture
and cattle-breeding, due to the natural advantages and the nearness of Sava River.
Dragan has continued the tradition of his ancestors, and, willing to engage in the production more seriously, took
another Partner loan in 2004 of € 2.500 to purchase dairy cows. The loan was repaid before due date, and the
following year he expanded the business by taking another loan of € 5.500 to purchase basic livestock, working
livestock and livestock offspring. Currently, Dragan is using his third, long-term “Golden loan“, of € 10.000, cre-
ated for special and successful clients. Having been involved in agricultural production and cattle breeding the
whole time, he had continuously been developing his business. Dragan has reimbursed all his loans before the
repayment due date, and has therefore gained a privileged status at Partner. Namely, Dragan has gained himself
the “Golden Client” status, which enables him to obtain loans under more favorable terms of repayment. Dragan
intends to continue to engage in cattle breeding, and the youth, life energy and enthusiasm that this young man
possesses, are giving him hope for a greater business and private success.

29
Innovation
Partnerintroducedaninnovativeapproach,astepaheadfromtheworld-wideac-
ceptedapproaches,bylaunchingnewproductswhichareacombinationoffinan-
cial and non-financial services, aimed at increasing the clients’ self-sustainability
and competitiveness.
Youth Loan (loan + free business training + mentorship for clientsƒƒ
age 18 – 30);
Fruity Loan (in cooperation with USAID, created a new loan for agricul-ƒƒ
ture & soft fruits cultivation);
Loan + life insurance (to simplify the procedure for the clients withoutƒƒ
guarantors);
Systematic market research and market-oriented new productƒƒ
development (48 volunteers, employees who are continuously making
researches in different fields).
Sustainability
To reduce the credit risk, Partner will continue focusing on the character and ca-
pacityofclients.OneofthespecificrequirementsoftheachievementofPartner’s
financial stability is the diversification of income sources. Therefore, in 2010 and
2011 Partner will submit to the Federal Banking Agency its development project
to transform itself into a bank. The new scenario would increase Partner’s flex-
ibility of fund raising thanks also to cheaper access to financial sources.
Selection criteria
Write-off Ratio 0.49% 1.00% 4.84%
Portfolio Yield 19.95% 19.55% 19.03%
Debt to Equity Ratio 4.19 3.77 3.29
Operating expense Ratio 8.93% 7.06% 7.60%
Cost per Borrower € 194 € 89 € 106
Staff Productivity 210.45 261.69 184.36
Return on Equity 14.20% 18.44% -8.23%
Return on Assets 3.22% 3.71% -1.87%
Operational Self-Sufficiency 133.49% 136.72% 94.70%
Impact – Outreach
The market research findings initiated a special project for young people,
with the aim to use a holistic model to increase self-employment opportuni-
ties for young people between 18 and 29 by providing access to loan capital
in addition to market-oriented business training and mentorship services for
young clients. Youth Loan has already been disbursed to 120 young entrepre-
neurs, while Fruity Loan has been disbursed to 206 rural farmers.
Replication
Many aspects of the Partner’s approach could be considered for replication:
A loan tailored for rural development - Fruit Loan - with the technicalƒƒ
assistance of an agricultural expert;
Cooperation with suppliers. Partner made cooperative agreements withƒƒ
many suppliers who have outlets all over the country;
A partnership with a local NGO to promote and inform potential clientsƒƒ
about Partner’s offer;
A toll-free info line to receive requests/complaints.ƒƒ
Active Borrowers 50.510 63.593 54.572
Women 57,47% 42,44% 42,73%
Migrants, Minorities 20,16% 17,97% 17,72%
Youth (18-29) 21,84% 23,03% 20,72%
Below Poverty Line 86,82% 90,05% 92,43%
Average Disbursed Loans € 1.568 € 1.418 € 1.220
Portfolio € 81.570.260 € 93.459.624 € 68.657.049
Staff 240 243 296
Drop out Ratio 19,13% 67,34% 50,26%
National poverty line is below €197/year

30
The Prince’s Scottish
Youth Business Trust (PSYBT)
Project Name
Microfinance Institution (MFI)
Type of organization:....... Company Limited by guarantee with charitable status
Location:....................................................................................................Scotland
Founded in:....................................................................................................... 1988
Mf products offered:..................................................................Loans & coaching
Portfolio:................................................................................€ 996.447 - £ 6.211.498
Av. Loan size:.................................................................................................€ 2.983
% of portfolio to women:..................................................................................38%
PSYBT presents itself and all its operations. Its focus is supporting the
young people in starting their own businesses. PSYBT offers financial and
non financial services in all Scotland.
www.psybt.org.uk

31
History
The PSYBT is a limited company with charitable status and is funded by both the public and
private sector. During the last 20 years since PSYBT was formally constituted (1988) the Trust
has supported over 11,000 young people in Scotland to start almost 10,000 businesses and
provided some £ 34 million in funding alongside a whole package of other assistance tailored
to the needs of each individual.
Structure
The PSYBT is firmly established throughout Scotland in 18 Regions. Regional Manag-
ers, located within the Business Gateway, are responsible for organizing pre-start
training and aftercare support for young people helped by PSYBT. Regional panels of
volunteers interview all applicants and make decisions on awards. The Head Office in
Glasgow sets policy, establishes procedures, directs training, manages most admin-
istration centrally and devolves operational matters to the 18 Regions. PSYBT has a
staff of 36 people and over 750 volunteers providing a range of advice, guidance and
mentoring support to young businesses across Scotland.
The Prince’s Scottish Youth Business Trust (PSYBT) was formally constituted in April
1988 with a Board of Directors comprising representatives from the public and private
sector with a mission: “to provide essential finance and professional support to young
people in Scotland aged 18 to 25, whoever they are and wherever they come from, so
that they can start up and continue to run their own business”.
PSYBT’s task is to help those young people with the imagination, energy and
determination to start their own business. Crucially, PSYBT is prepared to back
only those young people who have failed to find support for their idea from other
sources, whether this is because of social or economic disadvantage. Although
very much a national initiative, PSYBT is given a local focus via a Regional
Structure throughout Scotland.
2009 was the 20th Anniversary of PSYBT and provided a perfect reason to cel-
ebrate the success of over 11,000 young people who have received PSYBT’s
support in starting up and continuing in business. This support to over 11,000
young people has seen investment of over £ 34 million (€ 30 million) with a
current Loan Fund of £ 6.2 million (€ 7,12 million) and total repayments to the
loan fund being 82.5% of the original principal.
PSYBT offers loans to young people for start up business and for de-
veloping business. Loans range from £ 1.000 (€ 1.148) up to £ 25.000
(€ 28.718). It also offers services in pre-start phase including training,
advice and test marketing.
The PSYBT Aftercare Programme has been a key part of its product port-
folio since its inception in 1989. The provision of aftercare begins as soon
Other page, Peter McLean of The Food-
ie Company with some of his products.
Below, Eunice Olumide with Scotland’s
First Minister Alex Salmond.
The Prince’s Scottish Youth Business Trust (PSYBT)
PSYBT Staff

32
as the young person receives the funding and continues for a minimum
of 2 years. A volunteer is matched with the young business owner and
his/her role is to:
Provide support and guidance;„„
Facilitate learning using practical examples and experience of business;„„
Motivate and encourage;„„
Help with forward planning;„„
Capture business performance data that PSYBT can use to dem-„„
onstrate impact.
Funding sources
Funding to sustain the work of PSYBT is secured from loan repay-
ments made by the young people we help (40%), core funding
from Scottish Enterprise (20%), private sector fundraising (30%)
and support from the European Union (10%).
Gillian Parker of Sew Vintage with some of her own
range of clothing made using recycled material from
curtains, etc.
Regis Banqueting Ltd
Ryan Longmuir started his business Regis Banqueting Ltd in 2003 after spotting a gap in the market for high quality
catering at an affordable price.
Regis Banqueting Ltd cater for all occasions such as weddings, parties and corporate hospitality events and count
Bentley motor cars and O2 mobile phones amongst their customer base. In 2009 they catered for over 300 events
throughout Scotland including dinners in historic castles, marquees and hotels.Ryan, who grew up on a council estate just outside of Glasgow, now lives in an affluent area with his wife and
two young children. He left school with no qualifications or career ambitions. Before long he began abusing drugs
and soon his life spiralled out of control. Ryan said, “Sadly drugs had become a part of my life and I didn’t much
care about anything else”.
At 20 years old Ryan hit rock bottom and decided to make serious changes in his life. He found support and
guidance from a local church group and slowly started to turn things around. Over the next three years, he
worked with recovering drug addicts and helped them to overcome their own addictions. “I’m happy to be open
about my life story because I want people who might be having a tough time to realise there is a way out, that
you can change your situation for the better. I was able to turn my life around thanks to a lot of support, and so
can other people. I love life.”
With growing ambitions to be financially secure and continuing his work helping others from disadvantaged back-
grounds, Ryan considered the idea of starting his own business. He attended various training courses and found
a work placement at a local café.
It was then that he approached PSYBT who gave him the necessary finance and support to get his catering busi-
ness off the ground. “I presented my business plan and while I didn’t have any business experience I had done
all my research and I was determined to make a success of things. Thankfully, they shared my enthusiasm and
believed in me.”
Seven years on, Ryan’s business has grown considerably and he has ambitious plans for the future. Ryan will
continue to provide employment opportunities for disadvantaged young people.Ryan is also a PSYBT Ambassador and helps to raise the profile of the Charity’s work across a variety of sectors.
He makes regular donations to the Trust.

33
Selection criteria
The Prince’s Scottish Youth Business Trust (PSYBT)
Innovation
PSYBT is unique in that it brings together a mixture of public and private sector
supporters, some 700 volunteers, and partnerships with local councils and cham-
bersofcommerce.Thisnetworkallowstheorganizationtoreachouttoanyyoung
person in Scotland who would like to start their own business. A recent inde-
pendent evaluation recognised that the one to one support offered by PSYBT and
the experience of the network of Aftercare mentors is a critical success factor in
the delivery of tailored support to young entrepreneurs. The network of Volunteer
mentors is the lifeblood of PSYBT. In 2009, PSYBT launched an Innovation Fund
pilot for young entrepreneurs who have an early-stage business idea, but lack
the resources and expertise. PSYBT also runs the Elevator programme that helps
young business owners to develop their own business network.
Sustainability
PSYBT covers its costs partially with loan repayments made by the young people
it helps. Other important resources come from: Scottish Enterprise, private sector
fundraising and support from the European Union.
PSYBT does not envisage that it will ever be completely independent from public
funding but over the next 5 years aims to achieve financial sustainability of mi-
crocredit activities.
Financial Achievements – PSYBT year is July to June
2006-07 2007-08 2008-09
Write-off Ratio 7,91% 3,26% 0,88%
Portfolio Yield 6,00% 6,18% 6,13%
Debt to Equity Ratio 0 0 0
Cost per Borrower € 1.856 € 1.579 € 1.158
Staff Productivity 69 88 115
Return on Equity n.a. n.a. n.a.
Return on Assets -7% -7% -8.00%
Operational Self-Sufficiency 55,11% 55,33% 47,41%
Impact – Outreach
The evaluation undertaken by DTZ Consulting in 2007 confirmed that PSYBT
has a strong fit with the Scottish Government strategy to support Scotland’s
business birth rate, contribute to the pipeline of growing businesses and
to encourage a culture of entrepreneurship. The report also measured that
every £ 1 (€ 1.15) of public sector investment in PSYBT generates £ 26 (€
29.87) of net additional sales. In 2005/06 the total impact of PSYBT was esti-
mated as £ 22.6 million (€ 25.96 million) and 489 full time jobs demonstrating
significant added value.
The average investment per business is £ 3,417 (€ 3,925).ƒƒ
The average age of a beneficiary is 23 years.ƒƒ
Over 80% of the loan funding is paid back.ƒƒ
Some 52% of the young people we help were unemployed.ƒƒ
38% of business owners are female.ƒƒ
Replication
PSYBT delivers a simple model of support to young entrepreneurs in Scot-
land and places significant emphasis on creating individual solutions for in-
dividual needs - the focus is on building relationships with businesses rather
than offering off the shelf products or programmes. By combining access to
microcredit with a package of wrap-around support activities, delivered by
a core team of staff and volunteers, PSYBT has been able to offer a service
to aspiring young entrepreneurs, which helps them to overcome the barriers
they face in creating their own self-employment. The contribution of volun-
teer mentors is a particularly significant feature of PSYBT and one that could
be easily replicated in other similar programmes.
PSYBT continues to work closely with The Prince’s Youth Business International
(YBI) to be able to share best practice and intellectual property with other estab-
lished YBI programmes across the world as well as providing a model for new
and/orevolvingprogrammes.In2008PSYBThostedamajorconferenceonYouth
Enterprise. It was attended by some 150 delegates from 38 countries, all totally
focused on supporting young people in enterprise and entrepreneurship.
2006-07 2007-08 2008-09
Active Borrowers 640 653 678
Female 243 258 270
Male 397 395 408
Unemployed 333 321 312
Disabled 35 34 61
Criminal Record 19 21 32
Average Disbursed Loans € 3981 € 4079 € 3.618
Portfolio € 3.938.535 € 3.786.159 € 3.527.407
Staff 20 21 22
1 € = 0.90400 £ (at 30.12.2009) / 1 £ = 1.106194 €

34
Dutch Microcredit Foundation –
Qredits
Project Name
A new sustainable approach to microfinance. Blend of
traditional banking and sophisticated IT support.
Type of organization:.................................................................Private Foundation
Location:.......................................................................................The Netherlands
Founded in:..............................................................................................31/10/2008
Mf products offered:................................................ Individual Loans & Coaching
Portfolio:................................................................................................. € 9.926.335
Av. Loan size:...............................................................................................€ 21.176
% of portfolio to women:..................................................................................31%
Qredits, a Dutch Microcredit Foundation presents its innovative approach ori-
ented to sustainability, based mainly on the use of IT to automate processes,
maximize efficiency and transparency and to target the beneficiaries.
www.qredits.nl

35
History
Qredits is a private foundation, founded on 31 October 2008, by a group of public and private
partners. These partners are: the Ministry of Social affairs and employment, the Ministry of
Economic affairs, four banks - the ABN AMRO bank, Fortis bank Nederland, ING Nederland and
Rabobank Nederland - and a fund for employment and living.
Structure
Qredits has one central branch in Almelo that provides the back office for all loan officers, who work
locally. At the moment there are 8 locations – Almelo, Amsterdam, Den Haag, Breda, Eindhoven,
Zwolle, Groningen, and Utrecht - throughout the Neth-
erlands were loan officers are stationed. At the mo-
ment Qredits has 22 employees in total, 10 of whom
are credit officers.
As a foundation Qredits has no profit goal and there
are no shareholders. Qredits has a board whose
members have the voting rights concerning the run-
ning of the foundation.
Qredits works to provide financing to the target
group at a sustainable level and at the best possible
interest rates.
The target population, in principle would be anybody who wants to start or to develop a small
enterprise in the Netherlands and cannot obtain financing through regular channels.
Currently, Qredits serves different types of populations, in detail: 31% of loans are granted to
women, 16% are granted to migrants or ethnic minorities, 21% are granted to young people
(age < 31 years), 65% are granted to start-ups. Since its start, Qredtis covers 8 regions through-
out the Netherlands.
Qredits provides loans up to € 35.000 – fixed interest rate currently 9,5% and
maturity maximum 10 years – to start ups or already existing small and medium
enterprises based on a viable business plan. Clients, at least for the first year,
are followed by a coach to support their businesses and to maximize the survival
chances of the enterprise. The intensity of the coaching depends on the degree
of risk associated with the business proposed.
Funding sources
The funding, 15 million Euros in total for financing purposes and 2 million
Euros for operational costs, was awarded for the first two years, after which
the pilot will be evaluated. As Qredits and its approach to microfinance are
even more successful than expected, the estimation is that current funding
Other page, Fanny met Klant
Below, Qredits’Office
Dutch Microcredit Foundation – Qredits
Qredits’car

36
will run out by April 2010. By 31-12-2009, 530 loans of an average of
€ 21.176 had been granted. Qredits is currently looking at additional
funding opportunities, European funds and funding by banks under
commercial conditions among others.
Inside Qredits
Outstanding Professional Items
He could already clean well, and sell well, too. Bas Baak was able to make a flying start with his own cleaning business, Baak Schoonmaak,
but without the professional materials that a cleaner really needs. A microcredit from Qredits offered the solution. “I feel more confident. And
we’re growing nicely, too.”
Bas Baak was a car salesman, until he shattered his lower leg in an accident. He couldn’t walk easily anymore, so he went to work at a call centre, first
answering phones and later as a sales manager. After a few years he wanted something else. In late 2008, he could walk well again, and he decided
to start out on his own. Baak explains: “I liked selling, but I was tired of the call centre and in the car industry there wasn’t any work. More than that, I
wanted to start my own business. The freedom of entrepreneurship really appealed to me. Because I had previously cleaned as a second job, I got the
idea to start a cleaning company. I knew that I could earn a good living doing it.” Six months later, he cut the ties and resigned from the call centre to
focus entirely on his own business, Baak Schoonmaak, in Leidschendam. His sales talent didn’t fail him, either; he soon had four offices and a number
of apartment staircases to clean daily or every other day: at night the offices, stairwells during the day.
A costly joke
So far, so good. Baak enjoyed his freedom. His customers were satisfied with his work as well as his additional services such as clearing off conference
tables and loading and unloading the dishwasher. But he still was not working very professionally yet because he had not built up a sufficient buffer to be
able to invest in all the required machines and equipment. After a few months this became a growing problem; he says: “I sometimes rented a cleaning
machine, but it gradually became a costly joke. Also, I had only one set of cleaning supplies that I dragged everywhere. It’s of course much easier if you
can leave your materials at each office. But then you need a lot of supplies.”At one of the Chamber of Commerce’s Starters’ Days, Baak was advised of the possibility of microcredit. That was exactly what he needed. He wrote a
business plan and had it looked over by an adviser from the Chamber of Commerce.
With that, he went to Qredits, Microcredit in the Netherlands. “Requesting a microcredit could be done simply on the internet via the Qredits website.”
Within a few days Baak received a notice that his application was pending. Within one week Baak was visited by a Qredits business advisor. Together
they discussed the business plan and Baak’s future plans. “What amazed me the most was Qredits confidence in my plans. Naturally, they were critical,
but their trust gave me a definite helping hand!“ continues Baak. The microcredit of € 9,000 was approved and Baak had room to invest in his company.
He bought a cleaning machine, window cleaning equipment, a few vacuum cleaners, ladders, mop buckets and cleaning supplies.
Since then, things are going much better; according to Bass: “Even better than I had hoped. I like my work, I like my customers. It is great to be my own
boss. And I don’t have to drag around my supplies anymore.”Microcredit has helped him enormously, he adds. “Without professional materials I just couldn’t go any further. The fact that I now have everything I
need makes me feel much more confident with acquisition. I find that fact the most important because I am busy again with acquisition. If it goes well,
I’ll soon have too much work for myself alone. In June, I am going to hire someone. Yes, it is growing very well.”

37
Dutch Microcredit Foundation – Qredits
Innovation
Qredits is trying to develop a sustainable approach to deliver microfinance,
based on the use of highly sophisticated IT and using voluntary coaching
to support its clients.
IT is a key factor in many stages of the process - operational procedures;
marketing; matching coach and client; accountability & reports.
Qredits uses an affordable coaching provided by employees of big financial
companies, supported by these companies as Corporate Social Responsibil-
ity (CSR) activities. Fortis Bank and Aegon insurance are examples of compa-
nies who have formed voluntary coaching pools among their employees, to
coach entrepreneurs with a microcredit as a CSR activity.
Sustainability
Qreditswasbornasapilotproject,tooffermicrofinanceinasustainableway.For
this reason the foundation has developed a strong IT system to reduce time con-
suming in many activities. With this approach, in two years-time Qredits expects
to be sustainable and to reduce the interest rates and minimize the default rates
of the credit portfolio.
According to the projected demand for microfinance in the Netherlands, sustain-
ability can be reached by 2012. The necessary volume for the long term, 5000
newloansayear,canbereachedwithinthenext5years.Toobtainthisvolume,it
is essential to reach the target group, through internet and referring parties.
Selection criteria
Dec 09
Portfolio at Risk 1,23%
Write-off Ratio 0%
Portfolio Yield 9%
Debt to Equity Ratio 7,5%
Operating expense Ratio 15,9%
Cost per Borrower: € 3.412
Staff Productivity 26,84
Return on Equity 0,88%
Return on Assets 0,1%
Operational Self-Sufficiency 101
Impact – Outreach
Operations were launched in January 2009. Since that date Qredits has
received more than 3.400 requests: 548 were successfully granted, 1398
were rejected, 999 were not treated at all and more than 500 are under
evaluation.
Replication
Qredits and its innovations - the use of sophisticated IT & voluntary coaching
- could be applicable to any MFI. The system could be copied easily and only
requires Internet infrastructure. Qredits is ready to assist if help is needed.
Dec 09
Active Borrowers 510
Women 158 (31%)
Migrants, Minorities 82
Youth 107
Below Poverty Line 87
Average Disbursed Loans € 21.176
Portfolio € 9.926.335
Number of Branches 1
Staff 22
Loan Officers 10
Drop out Ratio 72%

38
Giordano Dell’Amore Microfinance Good Practices Europe Award 2010 | Special Mention
The Institution
Mission and Values: Providing microcredit to those excluded from the
traditional credit system both for business and personal purposes through
a rooted territorial development and with a focus on the standardization of
procedures.
PerMicro aims to distinguish itself within the panorama of Italian microfi-
nance institutions by achieving self-sufficiency as quickly as possible.
Established in: Formally created in June 2007, PerMicro started to provide
microcredit in January 2008.
Type of Organization: PerMicro is legally a non-bank financial intermedi-
ary, as defined by the Italian Banking Law (art. 106 of TUB, Testo Unico
Bancario - Legge 385/95). PerMicro is the first and only Italian professional
microcredit provider. It can grant loans directly to clients but cannot accept
deposits nor deliver guarantees.
Geographical Area of Operation: Operating initially in the multi-ethnic
neighbourhoods of Turin, PerMicro planned to develop to national level by
opening a series of territorial branches: during 2008, offices were opened
in Rome and Pescara, while in the first half of 2009, nine new offices were
opened in Turin, Milan, Bergamo, Brescia, Bologna, Genoa, Florence, Rimini
and Bassano del Grappa.
Funding Sources: PerMicro was founded by two large social organiza-
tions, Fondazione Paideia, based in Turin and Oltre Venture, the first Italian
social venture capital fund, based in Milan.
The initial share capital amounted to 600.000 euro and was later increased
by the arrival of new shareholders: a big banking group, UBI Banca, and
Fondazione Sviluppo e Crescita CRT, a venture philanthropy organization
based in Turin.
The Product Presented
Nowadays, the model most utilised by the Italian MFIs to deal with
credit risk is the so-called “triangular model”. PerMicro presents a
new model of Microcredit for enterprises and families where the pri-
mary objective is the implementation and continuing perfection of these
products, by differentiating them in order better to adapt to the clients’
needs, and combines three different activities normally performed by
different subjects (volunteers, a foundation and a bank) under the single
head of one actor: PerMicro.
Launching of the product: 2008
Portfolio: € 2.453.253
Average loan disbursed: € 5.732
Annual interest rate: from 9% to 12%
Target Population: persons excluded from the traditional financial
system.
Number of Clients: 428
Credit Evaluation: is based on assessing the general credit application: the
applicant’s personal characteristics, the applicant’s monthly balance, the aim
of the request, presence of guarantors or network credit.
Disbursement Period: once approved, the loan is disbursed within
24/48 hours.
Staff involved: PerMicro’s organizational structure is characterized by a
clear allocation of functions, subdivided in accordance with four principal
areas of responsibility each of which has one manager and several employ-
ees. These areas are: Product Area, Development Area, Administration and
Control Area, Marketing Area.
Collection System: monthly, direct from the client’s bank account.
PerMicro
www.permicro.it
Special Mention

39
Special Mention to PerMicro
Other page, conference in the square
Left, taylor’s workshop
Special Mention
A Special Mention has been awarded to PerMicro, Italy, winner of the
“Italy Award” in the 2009 edition and in the running again this year. It
rewards the growth path towards sustainability they have undertaken and
the pioneering partnership agreements they have established with the pri-
vate banking sector during the past year.
PerMicro has been developing its microfinance activity by following a
model that is innovative and pioneering by comparison with the various
other experiments carried out in Italy. The model is: “3 in 1” operational
model: Network Credit – Professional Team and Standardized Procedures
and Credit Scoring.
Phone center
ABI Italian Banking Association
ACAF Association for Self-Financed Communities
ADIE Association pour le droit à l’initiative économique
CRS Catholic Relief Services
EIF European Investment Fund
EU European Union
EMN European Microfinance Network
FGDA Fondazione Giordano Dell’Amore – Giordano Dell’Amore Foundation
JASMINE Joint Action to support microfinance institutions in Europe
IT Information technology
MFI Microfinance Institution
NGO Non-Governmental Organization
PSYBT Prince’s Scottish Youth Business Trust
SFC Self-Financing Communities
SME Small and medium enterprise
USAID United States Agency for International Development
YBI Youth Business International
Acronyms & Abbreviations

This book presents the summaries of the five experiences judged to be the best among the candidates for the second edition of the
Giordano Dell’Amore Microfinance Good Practices Europe Award created in collaboration with the European Microfinance Network; we
publish also past year winners’ accounts of activities subsequent to the awarding of the prize.
The aim of the award is not just to identify excellence in the field, but also to open up a debate and encourage discussion, enabling
closer examination of the methodologies, tools and social impact of microfinance in Europe.
In this second edition of the Award we focus on four principal aspects corresponding to the criteria chosen for the evaluation of the
applications:
 the innovative character of the experiences submitted;
 the mechanisms provided to assure the sustainability of the microfinance services offered;
 the actual and potential impact of the microfinance initiative with specific focus on poor and marginalized people;
 the replication process, namely the way in which the initiative submitted could be replicated in different contexts to solve the same
kind of problems.
In consideration of the fact that the European Union has declared 2010 the European Year for Combating Poverty and Social Exclusion,
particular attention has been paid to those initiatives explicitly focused on the fight against poverty and social exclusion.
In this document we present the activity of those European microfinance institutions that contribute to offer to people socially and
financially excluded, a condition of disadvantage increasingly common even in countries considered rich, an opportunity to access the
economic initiative.

FDGA Award 2010

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