What moves us

We are committed to this social mission because we understand that the poorest, in addition to being marginalized from the health, education, housing, and social security systems, are also excluded from the financial system. This exclusion promotes inequality of income and opportunities, and affects the economic stability of these families. Not having financing opportunities for work and / or personal projects, and to cover their economic emergencies are direct causes that impede their growth and progress.

According to a survey made by the organization TECHO in 2016 there are 3837 settlements where 788,425 families live in precarious conditions with limited access to elementary basic services.

Through social loans we look to provide new opportunities to our clients so they can finance their projects in suitable credit conditions.  We ensure that they comply with both the economic constraints and the particular needs of each of our borrowers.  We also think it is essential that the loans really represents a tool for economic growth, and in this way we look after their repayment process so as to make it as affordable as possible.

Of those who live in settlements and informal neighborhoods ...

1 out of 3 reported having been hungry for economic reasons in the last 12 months

54% has deficit in basic services

2 out of 5 does not have a decent home

65% of active workers do not have health coverage

The impact of inflation in the informal sector

Inflation is a strong cause for inequality.  Unfortunately those who work in the informal economy are much less protected from the impact of price rises.  The 84,70% of active workers of our objective population do not have a formal job.  The great majority are self-employed, or temporary workers that are highly vulnerable to local demand and price increase.

In addition, having no access to the formal financial system, the little money they have is in cash stored in their homes. This is a vulnerable factor as it is exposed to theft or to loss of purchasing power.  Also, it generates a temptation to spend it. Under these conditions, projecting for a saving objective or building assets becomes extremely hard.

The lack of credit guarantees

Another consequence of living in informality is the impossibility of meeting the credit requirements demanded by different credit institutions such as banks or credit agencies. This forces them to resort to local lenders who charge extremely high interest rates between 1100% and 2600% annually. The lack of access to credit under fair conditions is one of the many barriers they have in order to get out of this state of vulnerability and be able to achieve their life projects.

The lack of coverage mechanisms

One of the things that characterizes people who live in situations of vulnerability is the impossibility to cover different types of emergencies or contingencies. Some of these emergencies can be a flood, a disease, a leak in the roof, food, etc. 65.70% do not have health coverage services.

By means of coverage mechanisms such as emergency credits, we can mitigate the negative impact of these contingencies. These credits are of low amount and fast disbursement allowing the person to cover that emergency quickly.

 

All of these reduce the scope of any goal or life project. That is why by means of financial services adjusted to the needs such as social loans with a wide range of facilities is that we seek to help people have more opportunities to improve their quality of life.

"The interest rates of informal lenders, the only financing option for many, ranges between 1100% and 2600% annually"

"Half of the people say they have discontinued medical treatments for economic reasons in the last 12 months"