SOFIPA 28
Eulalia "Lala" has kept her little shop in the centre of Oaxaca running for more than 30 years. With her shop '3 Espinos' she supports her family, and thanks to a group loan from Sofipa, she grew her business and was able to send her son Antonio to a private school, where the quality of education is higher.
The project
Thirty years ago, Lala opened her little shop in the centre of Oaxaca, and to this day she stands behind the counter every day. The shop is her most important source of income. Together with other female entrepreneurs from her neighbourhood, Lala joined a group loan from Sofipa.
Every three months, Lala and the entrepreneurs in her group receive a loan. For a group loan, the women do not need collateral, as they act as guarantors for each other, which creates strong social involvement.
Lala invested her loan in expanding her shop's stock. With a wider product range, she attracted more customers, and her revenue grew. The higher turnover means a lot to Lala: a steady income, a buffer for difficult months, and room to invest in education for her son Antonio.
"I am immensely grateful for the support of Sofipa and the investors who, through Lendahand, show that they believe in the power of female entrepreneurs in Mexico."
With your investment, entrepreneurs like Lala gain access to financing that allows them to grow their business and offer their family a better future.
Your investment
- Annual interest rate: 6%
- For an investment of €1,000, the expected total repayment is €1,075.
- Maturity: 18 months
- Grace period: 12 months. You will receive the first half of your investment back in month 12 and the second half in month 18. Interest is paid in the 6th, 12th, and 18th month.
- Currency: Dollar. Please note that while you invest in euros, the loan is in dollars, which means there is a risk of currency fluctuations between the two. Visit our page on currency risks for more details.
SOFIPA
Impact
Financing is critically needed in southeastern Mexico, where Sofipa operates. Historically, this region has faced the greatest challenges, with the state of Oaxaca showing alarming poverty rates. This is the result of deficiencies in education, infrastructure, and basic services, which have hindered development. The situation for women in this area is even more difficult, further widening the gap. A loan empowers women, creating equal opportunities and making them stronger.
- Percentage of female borrowers: 92.9%
- 67% of borrowers report an improved quality of life. Source: Survey conducted by 60dB.
- Average loan amount: €510
Related blog articles
- Get to know 3 female entrepreneurs who benefit from a loan through Sofipa.
- Female entrepreneurs are essential for a powerful economy. Read why here.
- Want to learn more about gender lens investing? Click here.
- Want to learn more about how financial inclusion can thrive entrepreneurship? Read here.
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