SOFIPA 12
Invest in Sofipa, a successful microfinance institution in Mexico that supports women in underserved regions. Earn an 8.8% return with an 18-month loan and a 7% annual interest rate.
The project
Sofipa is a well-performing and profitable microfinance institution in Mexico. It provides group loans to women in some of the country’s poorer areas.
Women who receive financing through a group loan from Sofipa receive an amount every four months which is tailored to their personal circumstances. The loans operate on a 16-week (4 months) cycle, during which the women build a credit history that can help them apply for a formal bank loan in the future. In their first loan cycle, a group member can borrow up to 7,000 Mexican pesos (€340).
No collateral is required for a group loan, as the women stand as guarantors for each other, fostering strong social engagement. Every week, they meet to repay part of the loan, guided by a Sofipa coordinator. These gatherings are moments of connection, motivation, and knowledge-sharing.
Investing in the economic activities of these women strengthens their position within their families and society.
Sofipa on Lendahand
- Active on Lendahand since: February 2023
- Total funds raised: €1,950,811
- Amount repaid: €750,945
- Interest paid: €57,882
- On-time repayments: 8 out of 8 (100%)
Your investment
- Annual interest rate: 7%
- Return: 8.8%. For an investment of €1,000, the expected total repayment is €1,088.
- Duration: 18 months
- Grace period: 12 months. You will receive the first half of your investment back after 12 months and the second half after 18 months. Interest is paid after 6, 12, and 18 months.
- Currency: Dollar. Please note that while you invest in euros, the loan is in dollars, which means there is a risk of currency fluctuations between the two. Visit our page on currency risks for more details.
SOFIPA
Impact
Financing is critically needed in southeastern Mexico, where Sofipa operates. Historically, this region has faced the greatest challenges, with the state of Oaxaca showing alarming poverty rates. This is the result of deficiencies in education, infrastructure, and basic services, which have hindered development. The situation for women in this area is even more difficult, further widening the gap. A loan empowers women, creating equal opportunities and making them stronger.
- Percentage of female borrowers: 92.9%
- 67% of borrowers report an improved quality of life. Source: Survey conducted by 60dB.
- Average loan amount: €473
SDGs impacted
With this project, you are contributing to the following Sustainable Development Goals:
- SDG 1 - No poverty
- SDG 5 - Gender equality
- SDG 8 - Decent work and economic growth
- SDG 10 - Reduced inequalities
Read more about the impact you can make through our platform and the SDGs on our impact page.
Related blog articles
- Get to know 3 female entrepreneurs who benefit from a loan through Sofipa.
- Female entrepreneurs are essential for a powerful economy. Read why here.
- Want to learn more about gender lens investing? Click here.
- Want to learn more about how financial inclusion can thrive entrepreneurship? Read here.
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