"Solidarios" Microcredit Program

Subject Area: Community Development

Location: Great Buenos Aires

Description: Since 1995, FPVS has operated a microcredit program called "Solidarios" (Solidarity) to finance home improvement for poor families in Great Buenos Aires.
More than 8,000 families have received more than 12 million pesos in credit to enlarge, consolidate, finish or repair their homes.
This program consists in the creation of groups formed by 4 families that jointly receive the credit and pay it back in the same way, initially in six months. The first loan is granted for an amount of AR$ 2,000 per group. When a group finishes paying the loan, it can ask for it to be renewed. If the fulfilment of payment has been satisfactory, renewal loan amounts are increased successively.
All the promoters are women, program clients, who promote the creation of new groups. It was agreed with them that gradually, steps will be taken in the medium term to form a credit cooperative where the partners would be the neighbours from the neighbourhoods that today are FPVS clients.
When this cooperative is formed, the foundation will transfer its microcredit portfolio to this entity to continue its financial management.

Budget:
For operative expenses: AR$ 148,000 / US$ 47,000
For portfolio funding: AR$ 590,000 / US$ 187,000

Contact: Claudio Fiorucci