ANGEM microcredit for starting a small business
In Algeria, microcredit runs mainly through ANGEM, which grants interest-free loans for buying raw materials and, together with a bank such as BDL, funds projects of up to one million dinars for people with low or irregular income.
ANGEM, Algeria's public microcredit agency
Set up in 2004, the national microcredit management agency supports people with no income or an unstable income who want to start their own activity. It has branches in every wilaya and reaches out in particular to housewives and craftsmen.
The ANGEM loan for buying raw materials
The first formula, this interest-free ANGEM loan, capped at DZD 100,000 in the general case, is used to buy wool, fabric, flour or small tools to start a home-based activity. It is repaid over a short period, with no bank involved.
Three-way ANGEM funding up to one million dinars
For a larger project, the cost can reach one million dinars: the bank finances 70%, ANGEM provides an interest-free loan and the project holder contributes at least 1%. The bank interest is covered by the agency.
Repayment over eight years with a grace period
The associated bank loan runs over eight years, with a three-year grace period on the principal and one year on interest, according to BDL. Half-yearly instalments give the activity time to generate its first income.
Age, income and skills conditions for ANGEM
Applicants must be at least eighteen, have a low, unstable or no income, prove skills in the activity and not have already received public aid for starting a business. A fixed residence in the wilaya is required.
The mutual guarantee fund for microloans
The bank's risk is covered by the mutual guarantee fund for microcredit, to which the beneficiary pays a contribution. This guarantee replaces a mortgage, which is often impossible for people with no property or land title.
Activities funded: crafts, sewing, small trade
Sewing, traditional pastry making, hairdressing, Kabyle pottery, beekeeping or small-scale livestock farming are among the most frequent projects. ANGEM also funds services such as household appliance repair or computer maintenance for customers in the neighbourhood.
ANGEM training and sales fairs
ANGEM offers training in running a micro-business and organises fairs where beneficiaries can sell their products directly. This follow-up helps them keep simple accounts and meet the repayment dates that have been set for their loan.
ANGEM or ANADE: what is the difference?
ANGEM targets very small projects, while ANADE supports more structured micro-enterprises, up to ten million dinars. The two schemes cannot be combined for the same project, as our page on the business loan in Algeria explains.
An avenue for jobless Algerians
For an unemployed person registered with ANEM, microcredit is one of the few routes to formal financing. Our guide to the loan for the unemployed in Algeria also covers the unemployment allowance and other job integration schemes.
Microloans in the South and the High Plateaus
In southern wilayas such as Adrar, Tamanrasset or Illizi, crafts and small-scale farming account for a large share of funded projects. Specific conditions may apply, and the local ANGEM branch confirms the scale currently in force.
Microfinance in the Maghreb: two models
Unlike Tunisia, where associative or commercial microfinance institutions are active, Algeria relies mainly on a public agency. The page on microcredit in Tunisia lets you compare these two approaches to local financing in practical terms.
Putting together an ANGEM microcredit application
- Go to the ANGEM branch of your daïra or wilaya with a precise business idea.
- Fill in the application form and provide proof of identity, residence and skills.
- Attend the training offered and prepare a simple technical and economic study of the project.
- Appear before the approval committee, which reviews the project's viability and the amount requested.
- For three-way funding, file the approved application with the partner bank and join the guarantee fund.
- Buy the equipment or raw materials, then repay according to the agreed schedule.
The real cost of an ANGEM microloan
| Element | Amount or rate | Parameter |
|---|---|---|
| Raw materials loan | Up to DZD 100,000 interest-free (indicative) | Formula chosen and wilaya |
| Three-way project cost | Up to DZD 1,000,000 (indicative) | Type of activity and equipment |
| Personal contribution | At least 1% of the cost (indicative) | Total project amount |
| Bank interest | Covered by ANGEM | Meeting the repayment dates |
| Guarantee fund contribution | Small share of the loan | Amount borrowed |
Supporting documents for an ANGEM application
- National identity card
- Birth certificate extract
- Certificate of residence
- Diploma, training certificate or vocational qualification certificate
- Sworn statement that no other aid has been received
- Pro forma invoices for equipment or raw materials
- Passport photos
Mistakes that block microcredit in Algeria
- Presenting an activity without proven skills, when ANGEM requires a qualification or experience in the trade concerned.
- Having already received ANADE or CNAC aid, which generally makes you ineligible for the ANGEM scheme.
- Paying a middleman who promises to speed up committee approval, when filing and assessment are free of charge.
- Using the loan for family expenses instead of the activity, which jeopardises repayment and future access to credit.
Lenders to contact
- BNP Paribas El Djazair: Algerian subsidiary of the BNP Paribas group, a commercial bank serving individuals and businesses through its branch network in Algeria.
- Al Baraka Bank Algérie: Algerian Islamic bank that launched two new home financing products in 2024 built on Islamic finance principles for its customers.
- Banque Al Baraka d'Algérie: Algerian Islamic bank providing Sharia-compliant financing to individuals, professionals and companies, including ijara leasing and consumer financing products.
ANGEM microcredit in practice
Who can get an ANGEM microloan?
Anyone aged at least eighteen with no income or a low or unstable income, who can prove relevant skills and has not already received public aid for starting a business. Housewives and craftsmen make up a large share of beneficiaries.
Is ANGEM microcredit really interest-free?
The raw materials loan is granted interest-free by the agency. Under three-way funding the bank applies a rate, but the interest is covered by ANGEM, provided the agreed repayment schedule is respected.
Do you need collateral for a microloan in Algeria?
No mortgage is required. The mutual guarantee fund for microcredit covers the bank in exchange for a contribution paid by the beneficiary. The financed equipment may, however, be pledged in favour of the lender.
Can you get a second ANGEM microloan?
According to BDL, a credit extension can be considered once 70% of the initial loan has been repaid. You must show that the activity is working and that previous instalments were paid without any significant delay.