Financial services for informal sector entrepreneurs
Peru, 2013
Social Issue
Since becoming a democracy again in 1980, Peru has struggled to regain economic stability and growth. Currently, 44% of its 29 million inhabitants live in poverty.
Our Response
Microloans are a powerful tool to provide opportunities to excluded and marginalised communities.
Los Andes was created in December 1997 under the auspices of the government to provide financial services to rural communities in and around Puno. Although it developed adequate rural savings and credit products, assisting the underprivileged population, the institution was affected by several liquidity and management problems related to its property, largely in the hands of national NGOs. In 2010, a company called “Corporación Andina Peruana” made up of US (socially motivated) finance professionals and Elevar Equity recapitalised the company, acquiring a 97% stake. New managers have been appointed, and it is currently making significant strategic, operational and social improvements.
Expected Social Impact
With this investment of the Netri Foundation, it is estimated that Los Andes will be able to provide 186 loans to help communities to develop their businesses in rural areas of the country.