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