Last updated March 7, 2013

Partner Description:

Fondo de Desarrollo Microempresarial (FODEMI) is a microenterprise development fund that supports groups of entrepreneurs who have no access to formal financial systems. The organization works with vulnerable populations, especially women, in the marginalized urban and rural sectors of Ecuador. Its clients work in a variety of sectors including agriculture, artisan crafts and the commercial and service sectors.

Founded in 1995, the organization helps poor people in rural areas to start or expand their businesses by offering microloans and a wide range of training and business services. Those who apply for a loan through FODEMI receive supervision and guaranteed support from a team of technicians in charge of ensuring safe utilization of funds, as well as training in ‘soft’ skills to help them succeed in their businesses.

To date, the organization has helped more than 300 clients in Ecuador to establish or improve their businesses. Kiva lenders’ funds are used to expand the organization’s services to the poor living in more rural parts of Ecuador.

A unique lending approach:

FODEMI offers short term loans to micro-enterprise owners who require funding to develop their businesses. The guarantees and the requirements are minimal because the organization is targeting poor people in rural areas. According to the organization, the most important requirement is clients’ solidarity and moral responsibility.



FODEMI’s financial services include community banking, individual credit and solidarity group loans. Community banking loans are designed to help people with common goals access finance without substantial collateral. In contrast, individual credit is offered to micro or small business owners who have the capacity to pay, are financially solvent and meet all of the credit requirements. Group loans are designed to give access to credit without personal guarantees through the formation of a group whose members mutually guarantee each other’s commitment.

Status Update - September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a reassessment of the level of risk posed by this institution.

During this reassessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. Kiva's new risk rating system, which now includes half stars, has enabled us to display FODEMI's risk rating with a higher level of granularity. As a result, FODEMI's risk rating will now be displayed as 3.5 stars instead of 4 stars.

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio. To view that, please go here.