Banco do Povo Crédito Solidario

Banco do Povo Crédito Solidario

Lending Partner since 2015 • Brazil
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Fundraising Status:active
Risk Rating:

What to know about this Lending Partner

Impact Category:
General Financial Inclusion
Default Rate:
0.67%
Currency Exchange Loss Rate:
0.73%
Total Loans Raised:
$7,058,725
Loans at Risk Rate:
5.46%
Kiva Borrowers:
2,926
Delinquency Rate:
3.18%
Interests and Fees:
17% APR
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Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

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 micro lending 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.