Agency for finance in Kosovo (AFK)

Brief Profile

The Agency for Finance in Kosovo (AfK) is a Non-Bank Financial Institution (NBFI), previously registered as a program within Mercy Corps Kosovo (since September 1999), and re-registered in February 2002 as a Kosovar Non-Governmental Organization (NGO).

AfK’s mission is to improve living conditions in Kosovo by providing access to sustainable financial services for small and micro enterprises. AfK’s vision is to become a leading microfinance institution in Kosovo.

As of September 30, 2007 AfK has disbursed 6,241 loans total € 19,755.590  million in the Western Kosovo municipalities of Peja/Pec, Gjakova/Djakovica, Istog/Istok, and Kline/Klina. 

Loan Products and services

AFK clients are generally private enterprises/entrepreneurs that have been in business for at least six months, have previous business experience and are registered with UNMIK. For the loans less than €2,500 no UNMIK registration needed. Current client business types are as follows:

a) Production: wood processing, consumer goods, metal fabrication, construction materials, carpenters, woodcutters, furniture producers, shoemakers, bakeries, tailors, brick and tile producers.

b) Agriculture: commercial agriculture production, food processing, agricultural support services, meat/milk producers and processors, grain producers and processors, feed suppliers, fertilizer and equipment providers, etc.

c) Service: appliance repair services, dentists, hairdressers, watch repair, dry cleaners, car repairers, catering, etc.

d) Trade:  all kinds of small retailers.

AfK offers individual loans with a targeted average first loan size of €2,500, and clients who repay on time are encouraged to apply for additional loans, which may be increased up to 100% each cycle. Clients must demonstrate that they have collateral to guarantee the loan and are required to have two guarantors, as well as a family witness to sign the loan agreement.

Loan size range from €250 to €50,000 for the maturity of up to 36 months.

AfK currently offers three loan products as follows:

-Small enterprise loans (Available to small and medium-sized enterprises/private entrepreneurs involved in various services, production/processing and retail trade);

-Agriculture loans (Available to farmers, and pure agricultural business such as planting, milk producers, etc);

 -Flexible loans (For better living conditions i.e. Purchasing furniture, household appliances, renovating house, purchasing of wood for heating, preparing for winter, car registration, health emergencies, children schooling etc).