What to know about this Lending Partner
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Founded in 2010, ERES Energía Renovable better known by its commercial name Iluméxico is a hybrid social enterprise that provides affordable, clean energy to off-grid communities in Mexico and Colombia via solar-powered home systems. The organization is based in Mexico City.
While Mexico maintains a commendable 97% electrification rate, more than 3 million people, or 600,000 households, reside off the grid. Within these communities, primarily comprising indigenous populations, dependence on hazardous, inefficient, and dim energy sources persists. Similarly, Colombia, with a 95% electrification rate, confronts a parallel challenge, with over 2 million individuals, equivalent to 400,000 households, still lacking access to the grid.
Iluméxico serves these rural, low-income communities without access to electricity and basic services. Only 2% of their clients hold a bank account, and their average monthly income is $95 USD. This makes it difficult to apply for a loan with a traditional financial institution. Iluméxico bridges the gap by offering affordable loans, allowing individuals to finance their purchase of solar equipment at a below-market rate.
The organization offers household solar systems ranging from 25W to 325W, which can power items such as light bulbs, cell phones, and refrigerators. As a result, clients save an average of 8-17% of their monthly income through replacing candles, kerosene, diesel, and other lighting sources. Clients also gain an extra 2.3 hours per day to spend toward income-generating activities.
Since its founding,Iluméxico has refined its credit program and business model to better serve its clients. The organization now has a stronger community presence, hiring local employees to facilitate maintenance and coordination of payments. They have also moved to a service-based business model, allowing for more flexible financing. Clients now pay 0% interest on their loans and instead pay a minimum of $8 USD per month for maintenance costs.
Iluméxico has funded 874 loans totaling $313,275 USD through Kiva's platform since becoming a Lending Partner in 2012.