Social Issue

Despite recent progress, approximately 22% of the population in El Salvador lives below the poverty line, and income inequality rates remain high, with a Gini coefficient of 0.38, according to the World Bank. The gender gap is also concerning; women, especially in rural areas, have much more limited access to economic opportunities and financial resources. Only 28% of women in El Salvador have access to credit or formal financial products, according to World Bank data, which limits their ability to start or expand their businesses. This lack of financial inclusion perpetuates a cycle of poverty and inequality, negatively impacting the country’s socioeconomic development.

Our Response

Netri has provided a loan to Servicios Financieros Enlace S.A., a microfinance institution in El Salvador, to support their efforts in providing loans to underserved microentrepreneurs. Enlace, the largest microfinance institution in the country, focuses on reaching low-income women in rural areas, who make up 79% of its clients. The emphasis on group loans, which represent 87% of Enlace’s portfolio, will continue to facilitate access to credit for those who face the greatest  barriers to traditional financial services.

Expected Social Impact

With Netri’s loan, it is expected that Enlace will issue more than 3,000 microloans, empowering microentrepreneurs, living in the poorest and most underserved areas of El Salvador,  to expand their businesses, increase their incomes, and improve their living conditions.