The project

Igor's woodworking expertise extends to a wide range of wooden products, from wine furniture and cellars to tables, chairs, and garden pavilions. Despite a steady flow of orders, financial constraints became a significant challenge. The situation was compounded by the departure of skilled workers seeking opportunities abroad due to simplified migration procedures. Faced with the need to procure essential materials and replace ageing tools, Igor recognised the need for financial support to sustain and grow his small business.

In his search for financial support, Igor turned to microfinancing. With a business loan from Mikro Kapital, he was able to buy the tools and machinery to continue his business. This shows how Mikro Kapital’s microloan empowers entrepreneurs. Your investment in Mikro Kapital contributes to the ongoing success stories of SME entrepreneurs across Moldova, fostering economic development and resilience in the region.
 

What social return could your investment make?

Moldova continues to grapple with poverty despite some recent progress. This progress mostly comes from domestic spending and money transfers from Moldovans working abroad. Nonetheless, Moldova faces ongoing challenges, including the impact of global economic conditions and unpredictable weather.

Through this 200,000 euro loan, Mikro Kapital will be able to finance 20 Moldovan entrepreneurs like Igor, active in sectors such as agriculture, trade, and transportation. This funding not only strengthens their businesses but also stimulates job creation, contributing to Moldova's ongoing development.

What financial return could your investment generate? 

• Annual interest rate 6%
• The maturity of the loan is 36 months
• Repayment of your investment in equal installments every six months. That means you will receive the repayment of your loan in 6 equal installments, one every 6 months until the maturity of 36 months, along with the interest.
• With an investment of 1,000 euros, your expected total repayment would be 1,105 euros.

The story of Mikro Kapital 

Mikro Kapital is a financial institution in Moldova that offers loans to small businesses and individuals. It's part of a larger group called Mikro Kapital Group based in Luxembourg and owned by Alternative Fund. The company started in April 2013 and has its main office in Chisinau, with 11 branches in different Moldovan towns.

As of July 2022, Mikro Kapital had 79 employees and over 33 million EUR in assets. In the last two years, their total equity grew by 2.5 million EUR, reaching 6.9 million EUR. They've managed to maintain a good loan portfolio, with a low problem loan rate (PAR>90) of only 0.8%. Since they began, they've provided over 8,500 loans, totaling 80 million EUR.

Mikro Kapital Group, headquartered in Luxembourg, manages a substantial portfolio of over one billion euros across 14 countries.
 

Mikro Kapital in numbers

• Founded in 2013
• 11 branches across Moldova
• 79 employees
• > 8,500 loans provided, totaling 80 million EUR