1. FLEXIBILITY - The microloans are flexible to avoid borrowers need of doing sacrifices that negatively impact their lives. This flexibility allows the member to choose the amount of the installment, the frequency and which method of payment use. Due to their irregular income the borrower may need to adjust his spending on food, health, education or other elementary basic needs. In order to avoid that we look for the installment to be the adjustment variable, and make sure it respects the payment capacity of each one of our members for a better impact.
2. ADJUSTED TO CLIENT'S NEEDS - One size doesn't fit all. We don't exclude people based on their low income as we aim at reaching both depth and breadth. We aspire to reach people who live in vulnerable neighborhoods but with a strong commitment to move forward and improve their current situation. In this sense, we make sure that the terms and conditions of the credits always follows the growth of each of our borrowers.
3. FAIR INTEREST RATE - We believe that the interest rate should also enable growth and development. An excessively high rate can over-indebt the borrower. Subsidized interest rates can distance clients to real world conditions making them too dependable to our products. We also need to guarantee our sustainability towards the future. For these reasons, our interest rate is usually a few points lower than the rate of Banco Nacion loans that we use as a reference. We believe that it is a reasonable, fair rate that enables the client to take financing in a productive way.
4. NO MAJOR REQUIREMENTS - We do not request proof of income or formal guarantees. Our only requirement is to belong to one of our delegations. The better the borrower behaviour the more credit we can offer.
5. CONTINUOUS FOLLOW-UP - In pursuit of our objective of generating a social impact, we monitor the impact our loans are having on people's lives. Also this follow-up helps us to adjust the installment for a greater comfort of the client during the return stage. It also gives us valuable information so as to adjust credit limits accordingly.