How we work

The financial assistance of the program is based on a group lending model. Potential borrowers must join together in a group of four to six individuals, each with an enterprise that has been in operation for at least six months. The group then assumes a mutual loan guarantee which implies that if any member of the group defaults on their loan, the other group members must collectively repay that person’s debt.

As time goes by, participants create a credit history which allows them to secure larger loans. Initial loans range from $100 to $400 (Argentine Pesos) for micro entrepreneurs and $500 for house repairing, and may increase up to $1,500 for those individuals with an extensive and solid credit track record. Borrowers make small repayments on a weekly basis.

For those with a good credit history, we offer on request an individual loan (mainly to be invested on a fixed asset or raw material) which can be of up to
$4.000. Repayment frequency on these loans can be fortnightly or monthly.

Credits are generally granted for a period of 12 to 20 weeks, although this varies on whether it is a group or an individual loan.