The project

For over 30 years, Melvin has been growing chiltomas, a type of pepper, and other vegetables in Nicaragua using more sustainable farming methods. He utilizes composting and efficient irrigation to reduce the ecological impact of his farm. A loan from MiCrédito enabled him to invest in better seeds that need less water and fertilizers, enhancing his crop yield. Your support to MiCrédito provides crucial funding to 40 entrepreneurs like Melvin, promoting food security and economic growth in their communities.

MiCrédito, a leading microfinance institution in Nicaragua, serves clients who are often excluded from traditional banking services. With eleven branches, MiCrédito enhances economic opportunities, particularly in rural areas, and promotes gender equality, with 59% of its workforce being female and 60% of loans going to female entrepreneurs.

What social return could your investment make?

Despite significant advancements in recent years, Nicaragua, with a population exceeding 6.8 million (2021), continues to be one of the least developed countries in Central America. The financial landscape, particularly for lower-income farmers and small-scale entrepreneurs in urban and rural areas, is marked by limited access to funding. 

MiCrédito plays a crucial role by providing loans to these often-neglected entrepreneurs. A loan from the financial institution is, on average, around €1,200, offering a vital boost for business growth. By delivering these social impact financial services, MiCrédito has made a substantial difference in the lives of over 8,000 families across Nicaragua, significantly improving their quality of life and contributing to economic development in underprivileged communities.

 

What financial return could your investment generate? 

• Annual interest rate 5.5%.
• The maturity of the loan is 24 months.
• Repayment of your investment in equal instalments every six months. That means you will receive the repayment of your loan in 4 equal instalments, one every 6 months until the maturity of 24 months, along with the interest.
• With an investment of 1,000 euros, your expected total repayment would be 1,069 euros.

The story of MiCrédito

MiCrédito, founded on July 1st, 2004, represents a significant evolution in Nicaragua's microfinance sector. Originating from the experience and leadership of its management team and the Mennonite Economic Development Associates (MEDA), MiCrédito was established to provide enhanced financial services, particularly targeting the underserved rural areas of Nicaragua.

In September 2012, after eight years of dedicated institutional development, MiCrédito incorporated as a share-based company, marking a milestone in its growth. A year later, it gained official recognition from CONAMI, the National Commission of Microfinance in Nicaragua, further solidifying its presence in the microfinance landscape. MiCrédito's commitment to supporting its clients, partners, and shareholders continues as it collaborates closely with CONAMI, aiming for substantial social and financial impact in the communities it serves.

MiCrédito in numbers

• Founded in 2004
• 94 employees, 59% female
• 11 branches throughout the country
• As of 2023, 60% of loans went to female entrepreneurs