FINCA Microfinance: Supporting small loans to low-income entrepreneurs
Region: Latin America, Africa, Eastern Europe and the Middle East
Sector: Microfinance lending
Challenge: Small and low income entrepreneurs can be a critical source of economic growth in developing countries but they struggle to access finance.
Solution: OPIC in 2013 committed a $45 million loan to FINCA Microfinance Holding Co LLC to support lending to its microfinance subsidiaries in 23 developing countries in Latin America and the Caribbean, Africa, Eastern Europe and the Middle East. FINCA provides average individual loans of $750.
Impact: OPIC’s financing is expected to support 60,000 individual loans to the lowest-income entrepreneurs, including many women. The project will also support the increase in savings accounts, housing loans and microinsurance, which are all relatively uncommon in the countries where FINCA operates. FINCA is also implementing pilot programs introducing tools and programs such as electronic payment transactions and loan monitoring systems to improve efficiency.
By the fifth year of the project, a projected 325 local jobs will have been created.
This project was profiled in 2014