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funding gap emerging markets
Nicaragua

MiCrédito 10

  • MiCredito
  • Invest in microfinance
  • + 629 other investors
  • Meet Adriana, an agricultural entrepreneur from Nicaragua, who carries on her family's farming heritage, taught by her father. Specialised in parsley and radish cultivation, she has successfully expanded her crops with the help of MiCrédito's loans. Your investment can support 80 entrepreneurs like Adriana, fueling growth and supporting communities through their harvests.

    €200,000
    Amount
    5.50%
    Interest
    24 months
    Maturity
    6 months
    Repayments
    EUR
    Currency
    Amount€200,000
    Interest5.50%
    Maturity24 months
    Repayments6 months
    CurrencyEUR
      100%
      Fully funded in 15 days on 23 January 2024.

      Explore the project

      Adriana's agricultural journey began with a profound interest in farming. After finishing high school, she studied agricultural techniques, which helped her improve her farming. Her ability to reinvest in her crops, purchase essential materials, and pay fair wages during peak harvest seasons reflects the crucial role of MiCrédito in promoting sustainable farming practices and strengthening local economies. This highlights how small-scale agriculture can thrive with appropriate support.

      MiCrédito is a key player in Nicaragua's microfinance landscape, catering to both urban and rural clients with a focus on areas typically neglected by traditional financial systems. Its growth, driven largely by word-of-mouth, showcases its reputation for having dedicated employees, making prompt credit decisions, and offering competitive interest rates in the micro and small loans segment. With 12 branches across Nicaragua, MiCrédito offers previously inaccessible financial products, enhancing economic opportunities, especially in rural areas. The company also advocates for gender equality, with 59% of its employees being female and 60% of its loans supporting female entrepreneurs. This commitment fosters economic development and empowers women in their business activities. 

       

      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 both 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 1,083 euros.


       

      The story of Micredito

      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.


       

      Micredito in numbers

      • Founded in 2004
      • 94 employees, 59% female
      • 11 branches throughout the country
      • As of 2023, 60% of loans went to female entrepreneurs
      Company nameMiCrédito 10
      CEOVeronica Herrera Balladares
      Founded2004-01-01
      LocationManagua 
      SectorAgriculture
      Turnover€3,900,000
      Employees94
      Credit score3.04

      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 16 jobs are created
      • With this investment 400 lives are improved

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      We have already contributed to MiCrédito 10

      Hans Hofer
      Rinus Knuit
      Ron van Eijk
      B. Bloemink
      Jérome SERANT
      + and another
      629
      investors