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Microfinance Cooperation Model: Provision of Microfinance Services in Cooperation with MFIs in the Absence of Regulation

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In the absence of regulation in the German context, the cooperation model seen in this document brings together several partners in the attempt to reach scale, high competency and quality in the provision and monitoring of microloans. The model introduces a clear sharing of tasks and roles between partners and a clear sharing of costs and risks between them, which are fixed in mutual cooperation agreements. This alternative was developed by Deutsches Mikrofinanz Institut (DMI) and instituted by several pioneering microfinance organizations in April 2004 to provide a way for small-scale businesses and entrepreneurial start-ups to access capital markets.