Francis Yasmin Soza Huete has been the Envest Latin America Representative since 2007. She facilitates communications and conducts visits to Envest’s partner institutions in Latin America from her home office in Masaya, Nicaragua. She has been working with MiCrédito on Envest’s behalf since 2014. She remembers a friendly, enthusiastic and open atmosphere, which laid the foundation for a long-lasting partnership.
MiCrédito
MiCrédito is a non-deposit taking microfinance institution (MFI) based in Managua, Nicaragua. It is currently the largest partner in Envest’s portfolio by asset size. MiCrédito was founded as an NGO in 2004 by members of the current management team, and its main partner for all these years was Mennonite Economic Development Associates (MEDA). MiCrédito was restructured and became a corporation in 2013 regulated by the National Microfinance Commission (CONAMI), the regulatory body in Nicaragua. MiCrédito Nicaragua has 15 branches through which it lends to 12,952 micro and small producers and merchants, benefiting 66,525 people of whom approximately 25% are rural and 59% are women.
MiCrédito has grown from being a single MFI operating in Nicaragua to a regional MFI operating in three countries. MiCrédito Costa Rica was founded in 2018 to serve the Nicaraguan migrants in Costa Rica. MiCrédito Honduras was formed in 2023 when MiCrédito acquired Finca Honduras.
Envest began lending to MiCrédito in 2014, and it has grown to be Envest’s largest partnership. Recently, another ENVEST/MiCrédito loan was approved for $1 million dollars, to be disbursed in three installments, with the aim of continuing to expand their portfolio.
MiCrédito’s Impact
MiCrédito is always innovating to help its borrowers and communities. An example of an innovative product with high social impact is the #MujerEmprende Credit, designed primarily for women who want to start a business. Women can contact MiCrédito and connect with a Comprehensive Credit Advisor. They then receive a visit to verify the viability of the business. There are currently 265 businesses with a first loan of $500 dollars.
MiCrédito developed a three-month Diploma in Finance with emphasis on microfinance certified by UNIDES University for students interested in finance and management. The program teaches the students financial tools and management skills while providing practical experience. The students gain invaluable knowledge and experience while MiCrédito develops a pipeline of talent for its growing team.
Another innovative program is “Mercadito Pinolero,” which are WhatsApp groups created by MiCrédito that connect a network of borrowers and where the sale of products and services to customers at affordable prices is promoted among them through the support of the Comprehensive Credit Advisor. This program increases access to products and services while increasing business opportunities among borrowers, which results in higher repayment and loyalty to MiCrédito. Such innovative programs are relatively rare in the microfinance sector.
Spotlight on a Borrrower
I recently met with a MiCrédito client María Luisa Varela Canizales, originally from the Sabanete neighborhood of the city of Granada. She began working at a very young age doing gardening with her family. When she grew up, she became a street vendor of small household goods. María Luisa said that her credit history dates back to the earliest days of MiCrédito. Thanks to loans from MiCrédito over the years, she has improved her business. She expanded the products and services she offers while also improving the look and feel of her business. With her successful business she was able to raise her 3 children as a single mother. She has gone from a small house made of wood to one that offers her security because it is made of concrete. She highlighted the financial support, but also the added value of the attention they provide her, as she said: “I am intelligent and thrifty, that has helped me a lot, but the support to not go over my limits makes me love my Promotora (loan officer).”
Stay Tuned
I hope you have enjoyed reading about our partner, MiCrédito, and the wonderful work it is doing for the people of Nicaragua. I am very happy to support Envest’s work with this strong partner that has an innovative vision. Stay tuned for our next newsletter in which Jon Bishop will detail MiCrédito’s transformation into a regional MFI.