COOPHEL ASEI

Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status – Legal Change Update – July 1, 2024:

On July 2024, ASEI has transform its legal status going from an NGO to a Cooperative LLC (Sociedad Cooperativa) called COOPHEL ASEI. The transformation is being done in order to scale its operations and be able to obtain deposits from their clients, as NGOs are not legally allowed to collect deposited funds from the public. With the transformation to the cooperative, ASEI’s clients will have the opportunity to have savings and investment accounts with the company, in addition to the current credit products. All assets and liabilities have moved from ASEI to COOPHEL, including Kiva’s outstanding loan.

ASEI will remain as an NGO, providing technical assistance and developing social projects with the current clients, while COOPHEL will be the institution responsible for offering financial products. COOPHEL will continue making regular payments and using Kiva’s credit line.

Partner Description:

La Cooperativa para el Hermano Lejano – COOPHEL is a cooperative for profit organization founded in 2021 by its sister organization ASEI (NGO founded in 1990 by a group of local community leaders). COOPHEL provides financial products via group and individual credits to microentrepreneurs with limited economic resources with the goal of improving their living conditions and income level. As of June 2024, COOPHEL operates across El Salvador with 11 branches and serves more than 25,000 clients which approximately 78% are women.

A unique lending approach:

Kiva loans will provide additional liquidity for COOPHEL to continue to provide affordable loans to their target clients. Additional liquidity will also help COOPHEL continue to provide favorable non-financial services that include financial education, entrepreneurial training and accessible quality health services.