Credit: microlux

Microlux, a microcredit institution serving microentrepreneurs in Luxembourg, has announced the launch of its new interest-free loan.

With the support of two new partners, the Banque de Luxembourg and the impact investment fund Funds For Good, microlux is launching a new type of financing at the start of the year: the "prêt d'honneur" ("honour loan").

These are interest-free, unsecured loans with a grace period of up to 24 months. They are granted in addition to a usual microcredit and make it possible to finance business creators with quasi equity. For example, for a person who would need €15,000 in order to create or develop his / her activity, microlux could grant him / her €10,000 repayable under the usual conditions and €5,000 as an interest-free loan, repayable with a deferral adapted to his / her needs.

With an initial budget of more than €100,000 mainly funded by the Banque de Luxembourg, with the participation of Funds For Good as well as private donations following a call for funds in February 2021, this initiative is expected to help microlux to better meet the needs of and support business creators in Luxembourg.

Georges Heinrich, General Secretary and CSR Manager of Banque de Luxembourg, explained his decision to support this new microlux tool: "We do not currently offer dedicated support to microenterprises or startups, whose complex operation deserves innovative financing solutions. However, these companies have a significant impact on job creation and the revitalisation of the economy. We are happy to partner with microlux, alongside Funds for Good, and thus support these initiatives with a strong positive impact on the local economic and social fabric".

Nicolas Crochet, co-founder of Funds For Good, added: "This collaboration is very exciting for us and fits perfectly into the continuity of our action to support entrepreneurship with major microfinance institutions such as microlux [and] with the Banque de Luxembourg, which is a historical partner of our investment activity".

Sam Paulus, Senior Manager of microlux, concluded: “We are very happy to welcome Banque de Luxembourg and Funds for Good on board the microlux adventure. These two major new partners will allow us to create even more social impact and participate more actively in the economic development of Luxembourg".