Invest in your values. Bernard Horenbeek, Director

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1 Invest in your values Bernard Horenbeek, Director

2 Credal s civic roots

3 Crédal s civic roots Early 80 s. Bank-apartheid movement: struggling against that system implies the withdrawal of our financial support! Crédal s creation (CREDit Alternatif) in 1985, as a cooperative.

4 Who s Crédal?

5 Shareholders 1500 shareholders : Want their money to finance socially value-added projects. Take «shares in the cooperative» (with or without dividends). Legal or natural persons

6 Shares of the cooperative / month with dividends no dividends with dividends 2008 s dividend : 2,25%

7 The cooperative s philosophy

8 Crédal, better than a bank! Financial cooperative for solidarity Our customers are our Partners An organization of third sector Shareholders parts for individuals and third sectors organizations seeking for socially value-added financial investments. 15,000,000 of equity. A social purpose.

9 Crédal s activities

10 Credit for Social Organizations Personal Microcredit Professional Microcredit CREDAL Management consulting for social projects Affaires de Femmes, Femmes d Affaires

11 Microfinance: history and objectives

12 History and objectives 2000: Business start-up micro-loans MC2 2004: Social consumer lending Objectives : to offer access to loans tailored to the beneficiary s needs for start-ups or to improve the recipient s everyday comfort Personalised support Social performance indicators

13 Professional microcredit

14 Professional microcredit Creation or development of a professional activity. For future entrepreneurs facing financial exclusion. Specificities: Refundable in 4 years maximum. 5 % interest rate.

15 Professional microcredit Crédal s «+» : Human and personalized relationship. Advice and continuous support. Solutions adapted to the project and to its leader Flexibility.

16 Chris Derudder benefited from a professional microcredit to start his catering project «I am fascinated by the cooking for a long time. I like to say that my job is also my hobby, my passion and represents all my life. I have the possibility of living on this passion.»

17 Some figures First calls Files Files presented to our credit committee Accepted files Average amount

18 Personal microcredit

19 Personal Microcredit Consumers credit that maintains or improves daily life. For people with low incomes, facing financial exclusion. Specificities: Refundable in 4 years. 5% interest rate.

20 The personal microcredit The social green loan : 0% interest rate. For people who wish to realize energy savings. The credit is released according to the needs. Loan for family reunification: For immigrants willing to gather their family in Belgium.

21 Personal Microcredit Credal s «+» : Human and personalized relationships. Prevention of over-indebtedness. Budget advices.

Rex Nkangala reunified his family «Mes enfants ont entre 6 et 16 ans et sont maintenant scolarisés à Bruxelles. Ils se sont tous bien adaptés dans leur nouvelle école.

22 Rex Nkangala reunified his family «Mes enfants ont entre 6 et 16 ans et sont maintenant scolarisés à Bruxelles. Ils se sont tous bien adaptés dans leur nouvelle école. A leur arrivée, ils ont été surpris par le froid et le peu d heure de clarté. Je les ai vite rassurés en leur disant que ça ne serait pas toujours comme ça, les beaux jours vont revenir Pour moi, les beaux jours sont revenus le jour de leur arrivée en Belgique.»

23 Some figures First calls First interview Accorded credits Average amount a Loss ratio 0.4% 0.4%

24 Social performance indicators Target population Products tailored to the needs of target groups

25 I. Target Population People with low income who are excluded from traditional bank loans or for whom the loan proposed does not correspond to their needs. People who want to become self-employed but cannot obtain financing from a traditional bank. excluded from traditional bank loans (low income, lack of a guarantee, bad credit history, age, health, etc.)

26 Family situation 7% 20% 3% 43% Single Single with dependent family Couple Couple with dependent family Cohabiting (at parents, etc.) 27%

27 Origin of main resources 4% 2% Main ressources Art 60 Full-time casual work 2% 5% 18% 9% 5% 4% 15% Part time casual work Full-time contract of indeterminate duration Part time contract of indeterminate duration Unemployment benefits 30% 6% Minimum welfare payment Sickness benefits

28 Welfare recipients/workers 39% 61% Workers Welfare recipients

29 II. Products tailored to the beneficiary s needs and situation Sectors financed and types of loans: amounts, duration, interest rate Post-credit support, for business start-up micro-loans Specific experiences: social green loans and loans to migrant populations

30 A. Sectors financed Sectors financed by business start-up loans: Retail trade, craft enterprises and personal services at home, transport, horeca (hotels, restaurants and cafés), to finance investments, inventories, initial working capital needs, etc. Objects financed by social consumer loans: Second-hand cars, scooters, driving licences, household electrical appliances, furnishings, work, health care costs, etc.

31 Types of loans Business start-up micro-loans - Maximum: 12,500 - Interest rate: 5% - Duration: maximum 48 months Social consumer credit: - From 500 to 10,000 - APR: 5% - Duration: from 3 months to 48 months

32 Post-credit support for business start-up micro-loans: B. Support - Observation: once the financing has been obtained, the venture begins - Team of voluntary workers: one full-time employee coordinates a team of voluntary workers

33 C. Specific experiences Social green loans: loans at 0% for investments in energy savings Loans to migrant populations: loans tailored to progress in family reunification procedures

34 Production Business start-up micro-loans 8 years initial telephone contacts individual meetings micro-loans disbursed - Total amount disbursed: 2,700,000 - Average amount per micro-loan: 7800 Social consumer credit 4 years 4500 initial telephone contacts 3000 individual meetings 650 social loans disbursed Total amount disbursed: 1,900,000 Average amount per social loan: 3000

35 Business start-up loans Delinquency rate: Bad debt rate: Recovery and delinquent loans/bad debts Social consumer loans Delinquency rate: 8% to 10% Bad debt rate: 0.4% Personalised debt recovery policy

36 Conclusions Bank access: Access to appropriate services Better informed and better equipped individuals People on low income are not bad debtors Integrated model in Belgium Single structure (CREDAL) which acts as a lender and provides support/advice Evaluation Importance of the quantitative evaluation and qualitative impact on customers Funding The educational process is expensive Multiple sources of funding to ensure the long-term viability of the system

37 Crédal s team

38 Crédal s team 32 employees and 75 volunteers. Offices in french-speaking regions of Belgium : Louvain-la-Neuve Brussels Charleroi Liège Namur

39 Thanks for your attention Contact:

Investissez dans vos valeurs

Investissez dans vos valeurs Crédal: a citizens initiative «Banque-apartheid» Action anti-apartheid activists discovered that Belgian banks invested in South Africa Creation of Crédal (CREDitALternatif)