LOCFUND’s loans are in local currency, according to each country’s requirements for financial operations from international funds.

The conditions for the financing, such as amount, time, and interest rate are defined through an evaluation of the requesting institution and the country where it operates. Nevertheless, LOCFUND considers that this analysis is a joint task that seeks a financing operation where both sides are fully satisfied. General conditions are:

• Currency: local currency (LOCFUND takes on the exchange risk)
• Interest rate: according to each country and each MFI
• Disbursement fee: 1% of loan amount
• Amount: the equivalent of between US$200,000 and US$1.5 million
• Maximum tenor: 4 years, one year grace period
• Payment: semester payments, principal and interest
• Conditioning: none
• Legal costs for MFI: none, these are covered by LOCFUND
• Technical Assistance: non-refundable component focused on asset and liability management and risk control.