Oikocredit provides majority of its funds to microfinance institutions through loans which are then used by microfinance institutions for various activities, including providing smaller loans to borrowers. Oikocredit also provides direct loans to other organizations, including small to medium enterprises and farmer’s cooperatives. Oikocredit refers to all of these organizations as its partners.
Prior to loans being approved and disbursed, a thorough due diligence process is undertaken. Subsequent to the disbursal of loans, monitoring and mentoring is carried out to ensure partners are achieving their social goals and objectives.