MiCrédito, SA

Loans and life insurance for shopkeepers and small-scale farmers

Nicaragua

MiCrédito, SA is a microfinance institution (MFI) that offers loans to micro and small-scale farmers and shopkeepers.

Nicaragua has one of the lowest levels of income in the Americas, and close to 50% of its inhabitants live below the poverty line. The country is primarily dependent upon agriculture, and a significant part of its gross domestic product comes from money sent home by Nicaraguans living in other countries.

Oikocredit chose to give a loan to MiCrédito because it is active in one of the poorest regions of the Americas, and because it provides financial services for which there is a high demand. It seeks to reach as many people as possible. About 50% of its loans go to urban areas, but in the coming years it aims to become market leader for financial products in rural areas, supporting small-scale farmers with their enterprises and thus reaching those who are most in need of credit.

In addition to credit, MiCrédito provides life insurance, foreign currency exchange, the possibility to cash government cheques, and mobile phone pre-pay credit.

MiCrédito will use Oikocredit’s loan to extend loans to new clients.