The purposes of microcredit is help promoting and encourage small businesses by financing their investments and facilitating access to credit to low-income families who traditionally have no access to financing from traditional banking. Microfinance has been proven to be a powerfull tool in the fight against poverty.

This whole process begins in Nicaragua, where we collaborate with a local NGO called ADENOCH (Association for the Development of Northern Chinandega). They are in charge of selecting the beneficiaries for the loans. The selection of the beneficiaries starts with a personal interview in which the purpose of the loan is defined. Then the loan officer analyzes personal circumstances, needs, income and expenses of the family, etc... to assess whether the loan is feasible, and if so, what are the ideal conditions for the loan.

The loan uses vary from borrower to borrower, but we have disbursed loans fro the purchase of livestock, purchase of clothing and footwear or purc...
The purposes of microcredit is help promoting and encourage small businesses by financing their investments and facilitating access to credit to low-income families who traditionally have no access to financing from traditional banking. Microfinance has been proven to be a powerfull tool in the fight against poverty.

This whole process begins in Nicaragua, where we collaborate with a local NGO called ADENOCH (Association for the Development of Northern Chinandega). They are in charge of selecting the beneficiaries for the loans. The selection of the beneficiaries starts with a personal interview in which the purpose of the loan is defined. Then the loan officer analyzes personal circumstances, needs, income and expenses of the family, etc... to assess whether the loan is feasible, and if so, what are the ideal conditions for the loan.

The loan uses vary from borrower to borrower, but we have disbursed loans fro the purchase of livestock, purchase of clothing and footwear or purchase of goods for small businesses, among others.

The loans range from 200 to $ 2,000, with a repayment period of 12 months and an interest rate of 20%. To date, 43 loans have been granted to 33 beneficiaries, all of them women who are in charge of the household. 10 out of the 33 beneficiaries have decided to take a second loan with us. The repayment rate is 100%!

We are now in the development phase, we have just launched our crowdlending platform: www.microwd.es in order to be able to finance more projects in Nicaragua. All the projects will be presented with the basic loan information in order to facilitate the investment decision. It will be the investor decision to decide with loan he decides to finance.

The idea is not being a crowdfounding platform 100%, since we are looking that one investor finance one project. This makes the loan more personal for the investor, since he gets to know the borrower in depth, and in case the borrower decides to ask for a second loan, the investor might decide to finance again the project!

In order to attract more investors and thus finance more projects, Microwd agrees to return the investor an 8% interest in funding a solidarity loan. At the end of the loan period, the investor may dispose of the amount borrowed and their corresponding compensation or he will reinvest the total amount in financing a new project.
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Employees

Andres Zancada
Admin
Andres Zancada Sales Business Development specialist with a particular interest in environmental and social projects worldwide