Partner description:

Banco do Povo is a microfinance organization operating out of São Paulo offering microfinance loans to populations with little or no access to financial services. Banco do Povo Crédito Solidário began operations in 1999 as a nonprofit organization offering microcredit through solidarity group lending methodologies focused on the poorest segment of the population. The potential market for microfinance in Brazil is huge, but less than 2 percent of the country’s microentrepreneurs have access to loans. The market is also dominated by banks that only provide heavily subsidized loans that don’t reach low-income entrepreneurs.

Banco do Povo has a strong social mission of poverty alleviation and is one of the only organizations in southern Brazil offering collateral free solidarity group loans in the urban areas of Santo Andre, São Paulo. In addition to the loans the organization facilitates, Banco do Povo also seeks to expand microfinance in Brazil by assisting communities and organizations interested in starting or growing their own microlending programs. It was awarded Citi Bank's Best Microenterprise award in 2012, and receives funding from the Whole Planet Foundation, as well as Brazilian state and commercial banks.

A unique lending approach:

Banco do Povo offers 3 different loans through their microlending program. The short term working capital loans are meant for purchasing raw materials. Asset acquisition loans allow borrowers to purchase machinery and equipment. Construction loans allow borrowers to purchase building materials and pay for labor required for the project. All 3 of the loans are offered on an individual or group level.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Nov 10, 2015 Oct 12, 2005
Total Loans $431,525 $965,040,250
Amount of raised Inactive loans $0 $458,775
Number of raised Inactive loans 0 218
Amount of Paying Back Loans $265,600 $147,322,475
Number of Paying Back Loans 96 183,660
Amount of Ended Loans $165,925 $817,259,000
Number of Ended Loans 77 1,026,032
Delinquency Rate 1.79% 7.81%
Amount in Arrears $2,681 $7,615,675
Outstanding Portfolio $149,416 $97,492,336
Number of Loans Delinquent 6 19,236
Default Rate 0.00% 1.41%
Amount of Ended Loans Defaulted $0 $11,498,102
Number of Ended Loans Defaulted 0 33,015
Currency Exchange Loss Rate 0.00% 0.46%
Amount of Currency Exchange Loss $3 $4,395,675
Refund Rate 0.00% 0.62%
Amount of Refunded Loans $0 $5,946,325
Number of Refunded Loans 0 5,964

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 70.88% 75.33%
Average Loan Size $651 $399
Average Individual Loan Size $766 $631
Average Group Loan Size $2,965 $1,760
Average number of borrowers per group 4.6 7.7
Average GDP per capita (PPP) in local country $12,100 $5,879
Average Loan Size / GDP per capita (PPP) 5.38% 6.79%
Average Time to Fund a Loan 2.98 days 6.92 days
Average Dollars Raised Per Day Per Loan $218.48 $57.69
  Average Loan Term 7.15 months 11.12 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 31 502,868
  Journaling Rate 30.61% 41.48%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.17

Borrowing Cost Comparison (based on 2015 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 34% APR 44.00% PY 26.15% PY
  Profitability (return on assets) 7.94% 5.6% -1.14%
  Average Loan Size (% of per capita income) N/A 9.00% 16.85%

Country Fast Facts

Field Partner Staff

Fábio Maschio Rodrigues
Flavia Rocha