funding gap emerging markets
Nicaragua

MiCrédito 5

  • MiCredito
  • Local partner investment
  • + 637 other investors
  • This amount of EUR 250,000 will be used to fund 100 micro-entrepreneurs in the peri-urban and rural area that can use the money to grow their agri business and support the country's food sector.

    €250,000
    Amount
    5.00%
    Interest
    24 months
    Maturity
    6 months
    Repayments
    EUR
    Currency
    Amount€250,000
    Interest5.00%
    Maturity24 months
    Repayments6 months
    CurrencyEUR
      100%
      Fully funded in 2 days on 28 April 2022.
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      Summary

      About the issuer

      Summary

      MiCrédito Nicaragua is a non-deposit-taking Microfinance Institution (“MFI”) that serves customers at the bottom of the pyramid in Nicaragua. The current management team together with the largest shareholder in MiCrédito Panama (Mennonite Economic Development Associates or “MEDA”) have been involved in micro-lending in Nicaragua since 1990 when they established Fundación CHISPA, one of the most successful programs in micro-lending in Nicaragua. In 2000, CHISPA partnered with other investors to establish the first regulated MFI in the country (“CONFIA”) which grew to a 10-branch network with 70 staff members.

      In 2004, MEDA felt that it still had a role to play to promote financial inclusion in Nicaragua, particularly by providing improved levels of service and by targeting the underserved rural markets. That is the moment that, together with some of the key staff that participated in the original CHISPA, MiCrédito Nicaragua was created as a NGO. MiCrédito management dedicated over eight years to building institutional. In 2013 MiCrédito was approved by Nicaragua's new microfinance regulating body National Comission of Microfinance in Nicaragua (“CONAMI”).

      MiCrédito has 12 branches. The agents at the branches use a traditional personal approach, going door to door, visiting rural communities by motorcycle. MC also has an active digitization strategy, which has paid of during the COVID-19 crisis. Apart from a few remaining regulatory requirements in the KYC area, the company has entirely digitized its processes.

       

      Use of Proceeds / Loan purpose

      This amount of EUR 250,000 will be used to fund 100 micro-entrepreneurs in the peri-urban and rural area that can use the money to grow their agri business and support the country's food sector.

       

      Mission

      To create business solutions that include both social and financial support to Micro and Small Entrepreneurs, providing for a more prosperous future.

       

      Vision

      To evolve into an institutional bank, in order to contribute to the economic and social development of the Micro and Small businesses in Central America

       

      Awards

      In 2021, MiCredito was in the Top 3 of the best MFI in Central America and Dominican Republic.

       

      Company nameMiCrédito 5
      CEOVeronica Herrera Balladares
      Founded2004-01-01
      LocationManagua 
      SectorAgriculture
      Turnover€3,900,000
      Employees94

      Impact

      MiCrédito is a microfinance institution in Nicaragua with a strong social background. They mainly focus on serving female entrepreneurs and entrepreneurs in agricultural and rural areas.

      Financial penetration remains low in Nicaragua, and access to financing is scarce, especially amongst lower-income farmers and small-scale entrepreneurs in rural areas. At the moment, only 14% of the population can borrow from a formal source of funding, and just 8% have a savings account. To turn the tide, MiCrédito is focusing on serving the base of the economic and social pyramid.

      Along with microloans for businesses, MiCrédito offers student loans at interest rates of 1.66% per month only. They also offer home improvement loans, sanitation loans, and solar product loans to enable the purchase of renewable energy products, such as solar panels. Through their social impact financial services, they have improved the quality of life of more than 8.000 families in Nicaragua so far.

       

      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 posts

      • Read the introduction of MiCrédito as a new investment opportunity here
         
      • Want to learn more about how financial inclusion can thrive entrepreneurship? Read here
         
      • Wondering which other microfinance institutions we have in our portfolio? Check them out here.
      • With this investment 20 jobs are created
      • With this investment 500 lives are improved

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      We have already contributed for MiCrédito 5

      Christoph Kollenda
      Manfred Jansen
      Hans Bierhuis
      PHUYS Huys
      Elke Krekels
      + and another
      637
      investors