FAQ

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  What is microfinance?

  Microfinance is a framework that offers a range of financial services (savings, insurance, money transfer, payment and credit) tailored to the needs of low-income individuals, micro businesses and very small businesses. Thanks to a local service, microfinance allows to serve a population that is generally not covered by the traditional financial system. The objective is to allow these people and these companies to better manage their incomes and expenses, smooth their consumption, acquire assets, protect themselves from external hazards, and invest in an activity to increase their incomes. Microfinance sometimes includes non-financial services that allow to better use the financial services.

  
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  What is a credit?

  A credit transaction is any act by which a person, charging for his services, makes or promises to make funds available to another person or, in the interest of that person, makes a signed commitment such as an endorsement, a contract of guarantee or any other guarantee.

  The most common credit transactions include leasing and factoring operations.

  These provisions are not applicable to credits granted by commercial enterprises to their customers for supplies or services, as well as loans from parent companies in favor of their subsidiaries.

  
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  What is a microcredit?

  A microcredit is any credit aimed at helping economic and social integration. Microcredits are granted to finance an income-generating and job-creating activity, or for finance needs related to improving the living conditions.

  
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  For whom are microcredits?

  The persons eligible for micro-credits are natural persons, members of needy families and vulnerable social categories who have the capacity to pursue an economic activity, or who are qualified to practice an income generating profession, trade or activity.

  
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  How much is the maximum microcredit amount?

  The maximum microcredit amount is:

  • 10.000 TND and a maximum repayment period of 5 years for associations. This amount must not exceed 2.000 TND for the credits granted for the financing of living conditions improvement.
  • 40.000 TND and a maximum repayment period of 7 years for public limited companies. This amount must not exceed 6.000 TND for the credits granted for the financing of living conditions improvement.
  • The total amount of 10.000 TND or 40.000 TND including all the outstanding credits granted by other microfinance institutions. This amount includes credits granted for the financing of living conditions improvement.

  
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  What is a microfinance institution?

  A microfinance institution is any legal entity exercising, as a regular occupation, the following operations:

  • Granting micro-credits in accordance with the conditions laid down by the Decree-law No. -117-2011 of 5 November 2011, on the organization of the microfinance institutions activity.
  • All the operations related to the management of customer initiatives, training and support.

  
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  What are the different forms of MFIs?

  Microfinance institutions are constituted as a public limited companies with a minimum capital set at three million dinars or associations with a minimum associative endowment set at fifty thousand dinars.

  
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  What is the interest rate charged by the MFIs?

  For microcredits granted on budgetary resources mobilized in the framework of agreements concluded with the Tunisian Solidarity Bank, the annual interest rate does not exceed 5% with a file study commission of 2.5%.

  The interest rate for micro-credits granted to resources other than those mentioned above, takes into account the actual expenditure required for the granting of these credits, and in particular, the cost of resources, management and training operations and the operating costs.

  
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  What is the Difference between Microfinance and Financial Inclusion?

  Microfinance and Financial Inclusion are two concepts that are still unclear in Tunisia. There is also no clear definition of each of these concepts at the international level. It is usually understood that microfinance and financial inclusion differ in that the scope of financial inclusion is broader than that of microfinance. Financial inclusion is understood as the state where any person or company has access to a range of financial services adapted to their needs and their capacities, offered in a responsible and sustainable way by formal institutions.

  At the beneficiary level, financial inclusion adds to microfinance any person or company that is poorly or badly served by the current financial sector: For example, SMEs, and also users of transfer of funds, people benefiting from social transfers from the State through postal agencies, agricultural holdings that are outside the framework of microfinance, etc.

  At the actions field level, in Tunisia, microfinance is often understood as microcredit. Speaking more about financial inclusion, we automatically broaden our understanding of all the services that enable financial inclusion: savings, insurance, means of payment, transfer of funds, and non-financial services designed to help people access financial services.