The Netherlands has become the first EU member state to receive EU funding for providing microfinance. The European Investment Fund is making €2 million available, says Dutch Economic Affairs Minister Maxime Verhagen. He announced the news on Friday, accompanied by Princess Máxima, who is a prominent advocate of microfinance. 

Small-scale start-up initiatives can apply for a microloan from Qredits, a Dutch microfinance organisation. Since its foundation in 2009, Qredits has granted over 1100 loans, with a total value of almost €23 million. The EU funding comes in addition to financing that Qredits already received from a number of major banks and the Dutch government.

Borrowing money from Qredits is slightly different to borrowing money from a bank. There is a maximum of €35,000 and the organisation also provides special coaches who can help fledgling businesses find their feet. Qredits also places a greater emphasis on lending to the unemployed or people who have been in debt in the past.

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