Cordaid's Loans & Guarantees programme
Codaid is a non-governmental organisation from the Netherlands with more than 90 years experience and expertise in development cooperation. Cordaid’s Loans & Guarantees programme offers loans and guarantees at market interest rates but accepts higher levels of risk than commercial financial service providers are willing, or able, to accept. Additionally, the programme offers grants for capacity building related to the loan or guarantee.
The loan or guarantee is used for specific investment, input financing and/or trade financing of agricultural products involving small producers. The programme is especially applicable to the situation in which small producers supply their products to a larger company. For instance, a banana exporter can obtain a loan to be used to invest in setting up packing stations close to the banana producers. Or a cheese factory may get a loan for buying milk collection trucks to collect milk from dairy farmers. Or a coffee trader may get financing to buy coffee beans from smallholders. In order to transfer know-how to the contract producers and to strengthen their organisation, technical assistance and training may be required which can qualify for a grant (donation).
The loan amount typically varies between Euro 50,000 and Euro 500,000, whereas the grant amount is usually between Euro 50,000 and Euro 100,000.
The programme is applicable for the following countries:
Africa
Cameroon, Ethiopia, Ghana, Malawi, Uganda, Sierra Leone, Tanzania and Zambia
Asia
India, Indonesia, Philippines and Vietnam
Latin America
Bolivia, Brazil, Dominican Republic, Honduras and Peru.
For more information on the Loans & Guarantees programme and Cordaid’s accounting policies, see www.cordaidpartners.com.
Please contact us for a free assessment to find out whether your business plan may qualify for Cordaid’s Loans & Guarantees programme.
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