EXPERIENCES AND
GOOD PRACTICES IN
MICROCREDIT
PROGRAMS FOR THE
POOR
ORGANIZACIÓN DE DESARROLLO EMPRESARIAL
FEMENINO.
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INTRODUCTION
• ODEF STARTED OPERATING IN 1985
• INITIATED CREDIT PROGRAM IN 1989
• BECAME SELF-SUFFICIENT IN 1996
• 9,200 ACTIVE CUSTOMERS
• ACTIVE PORTFOLIO US$ 5.2 MILLION
• 60% OF OUR CUSTOMERS ARE POOR
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INTRODUCTION
• ODEF CREDIT PRACTICES HAVE NOT ALWAYS
BEEN GOOD PRACTICES.
• EXPERIENCE AND EXCHANGES HAVE
ENABLED US TO DESIGN GOOD PRACTICES
AND STRATEGIES
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TWO STRATEGIES FOR SERVING
THE POOR WITH CREDIT .
• START WITH CREDIT.
• In urban and marginal
urban areas
• Finance known
activities, reinforcing
through training.
• START WITH
TECHNICAL
ASSISTENCE.
• In the rural area for
agricultural loans
• Teach techniques and
forms of production,
going on to provide
credit support later.
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Good practices and
experiences starting with credit
(First strategy)
• Begin financing activities that the people
already handle.
• Start off by financing small sums.
• Training in loan management, self-esteem and
gender is essential.
• In the short term make social investment loans
that permit improvements in their quality of life.
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Examples of successful cases
using this strategy.
• Banco Comunal de La Mujer. (Women’s
Community Bank)
• Activity: Lime Production
– 15 Members
– First loan $200.00 x person (1997)
– Present loans $2,700.00 x person.
– Monthly sales at the beginning $400.00 x person
– Present monthly sales $3,125.00 x person
– ($2,725.00 increase in monthly sales)
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Banco Comunal Pito Solo (Pito
Solo Community Bank)
• Activity: Fish breeding
• 17 Members
• First loan $176.00 x person (1999)
• Present loan $ 1,125.00 x person
• Monthly sales at the beginning $2,823.00
• Present monthly sales $7,058.00
• ($4,235.00 increase in sales)
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C.I. Santos Chacón
• Activity: Handicraft Manufacture.
– First loan $176.00 (1993)
– Present loan $1,112.00
– Monthly sales at the beginning $294.00
– Present monthly sales $2,647.00
– ($2,353.00 increase in sales)
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C.I. Dilcia Odilia Guzmán
• Activity: T-shirt Factory
*First loan $ 90.00 ( 1997 )
* Present loan $625.00
* Monthly sales at the beginning $ 150.00
* Present monthly sales $ 3,350.00
($3,200.00 increase in sales)
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Good practices and
experiences starting with
technical assistance in rural
areas
• Equip (Invest in) communities to be able
to receive credit.
• Training and technical assistance to
improve productivity and diversify
production.
• 3 to 5 years to accomplish this.
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Good practices .......... (pilot
program)
•Do not finance agriculture through payment at
maturity
•Finance the farm and not the crops.
•Do not expect them to become independent
immediately.
•Continue with training in aspects of business
administration.
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Examples of successful cases
in the rural area using the
second strategy.
• Banco Comunal : Los Naranjos (Los
Naranjos Community Bank)
– 15 member families
– Initial loan $176.00 ea. ( 2001)
– Present loan $364.00 ea.
– Initial crops: 3 crops
– Present crops: 7 crops
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Examples of successful
cases...
• Banco Comunal 1 de Noviembre (1 de
Noviembre Community Bank)
– 10 member families
– Initial loan $153.00 ea. ( 2000)
– Present loan $382.00
– Initial crops : 2 crops
– Present crops: 6 crops
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