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microlux increases its capital

Visuel augmentation du capital 2020

The health crisis has led to a greater demand for microcredit.

In order to encourage local initiatives, microlux shareholders – including BGL BNP Paribas, the Foyer insurance group and the NGO ADA (Appui au Développement Autonome) – have decided to strengthen microlux’s financing capacity.

Through a capital increase of EUR 233,000, microlux and its shareholders will promote integration through economic development by reducing barriers to entrepreneurship. 

Read the press release

What is microfinance?

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A microloan is a way to boost financial inclusion by helping those who are shut out of the traditional banking system to achieve their goals.


Some people lack access to standard banking services because their income is low or unpredictable. This is where microfinance institutions step in: they provide access to financial services such as savings, insurance, loans and credit transfers at affordable prices.

When we hear about microfinance, the first things that spring to mind are often developing countries, and the Bangladeshi economist Muhammad Yunus, who pioneered microloans in his homeland.

Yet, as a result of rising social inequality, people in mature economies such as Luxembourg are increasingly turning to microfinance as a way to help people on the fringes of society to make their dreams a reality.

microlux

As part of its commitment to social responsibility, BGL BNP Paribas is the main banking partner and a founding member of Luxembourg’s leading microfinance institution, microlux, which was founded in 2017. 

The aim of microlux is to boost financial and social inclusion by encouraging and supporting entrepreneurial projects. Beneficiaries are usually people who are unemployed or vulnerable, or young people with no financial backing or experience.

The three key pillars of microlux are: 

  1. Support for entrepreneurial projects not eligible for traditional bank loans
  2. Guidance to project leaders through a coaching programme offered by its network of volunteers
  3. Loans of up to €25,000 

How does this work in practice?

In 2019, 36 microloans were granted in Luxembourg.

To date, microlux has allowed for the creation of 70 businesses and 110 jobs.

In 2019, microlux demonstrated its dynamism by launching a new “employment microloan” of up to €10,000 to meet professional mobility needs.

The European Investment Fund joined BGL BNP Paribas as an equity investor in microlux in September 2019, thereby giving a new dimension to microfinance in Luxembourg.