Get a business loan from €1,000 to €25,000 through AFI Microfinance. The programme supports self-employment, very small entities and small businesses. At the same time it focuses on empowering vulnerable social groups. This way it contributes to reducing social inequalities. In addition, it offers advisory services to create or grow their business.
This way it fills the financing gap for small businesses and entrepreneurs that do not meet the strict, standard criteria for bank lending.
AFI (Action Finance Initiative) was founded in 2014 as a non-profit organisation.
Its aim is to support and empower existing businesses and potential entrepreneurs by offering access to financing in the form of microloans.
The organisation came out of the need to strengthen entrepreneurship at a time when Greece was deeply affected by the financial crisis, and when start-ups, single-member or small businesses often found it difficult – and still do – to secure the necessary financing from the banking system.
A landmark in this long-standing effort was the founding of AFI Microfinance SA in 2023 and its licensing from the Bank of Greece.
This significant development allowed AFI to provide direct financing to interested parties without the intermediation of other banking institutions.
Working with Eurobank
Since 2016 AFI has been working with Eurobank in the context of the programme for employment and social innovation (EaSI).
In November 2024, Eurobank strengthened its ties with AFI. As part of AFI Microfinance SA’s share capital increase, Eurobank holds 19.9% of the common shares and 100% of the preferred shares of the company.
AFI Microfinance
AFI Microfinance SA is a microfinance institution, licensed and supervised by the Bank of Greece.
Its mission is to:
- Combat exclusion – it provides microfinancing to target groups that do not have access to other sources of financing and the banking system.
- Educate and empower people to break the vicious cycle of social and financial exclusion.
- Strengthen the business community – it educates and guides micro-enterprises and vulnerable social groups on entrepreneurship issues.
- Ensure that beneficiaries not only receive financing, but are also able to use it effectively in a sustainable manner.
- Support framework configuration – it improves the legal and institutional framework for self-employment, entrepreneurship and microcredit.
- Restore social economy – it offers sustainable and inclusive solutions, focusing on people and supporting vulnerable social groups. This way it creates new job openings and leaves a positive footprint on society.
Prior to the disbursement of your loan, AFI Microfinance offers free assistance and guidance to create a 3-year business plan and sales forecast.
Purpose
Financing is provided for:
- Working capital
- Investment plans
Financing amount
The maximum financing amount is €25,000.
Interest rate and collateral
Financing is offered with a fixed 9.75% interest rate, provided that your business meets the criteria of the EIF InvestEU guarantee programme.
Loan term
You repay the loan in 12 to 48 equal monthly instalments.
Grace period
It may be up to 6 months, depending on the review of your application.
Cost of training services
It is determined by the amount of your loan.
- Ensure your business has been established before the loan is disbursed.
- Provide tax/insurance clearance certificates.
- Have a positive credit history.
- Make sure the total investment does not exceed €50,000.
- Name a guarantor for 50% of the amount, with a maximum guarantee of €3,000.
- Have a positive net position if it is a private company.
- Have a sustainable business plan.
- Be able to set up a business plan implementation team.
- Have prior experience in the field of business activity.
- Create jobs.
- Improve the quality of life, especially if you are part of vulnerable communities.
- Leave a positive social and environmental footprint.
- Be able to repay your loan.
People often ask about the AFI Microfinance financing programme
Is it necessary to have a guarantor for my loan?
The loan is disbursed approximately 3 weeks after your first meeting with the AFI advisor.
You just need to be consistent in the meetings that will be scheduled and submit the necessary supporting documents on time.
No, there is no loan processing fee.
However, there is a fee for servicing / monitoring the loan and providing access to training services, which amounts to 5% of the loan capital.
This fee is paid upon loan disbursement, provided your application is approved and the process has been successfully concluded.
