Among SIDI’s partners is EDAPROSPO in Peru. EDAPROSPO is an association which provides health and training services to the inhabitants of Lima’s poor neighbourhoods. It also promoted the creation of Credit and Savings Cooperatives, and then created a Microfinance Institution called “PROSPERIDAD”.
PROSPERIDAD offers three types of financial products to its customers: individual credits, group credits with joint securities and “community cash boxes” in which the group of borrowers must save in the save box. The institution also provides technical assistance to its beneficiaries.
SIDI provides 15% of the financial resources to the “PROSPERIDAD” programme, as well as its technical expertise and contribution to the research of extra financial resources.
Thanks to EDAPROSPO, a lot of small entrepreneurs excluded from the classical bank networks were able to develop their activity, and thereby improve their life conditions and that of their family.
This is the case of Carmen, who sales diary products and fruit juices at a market in the suburbs of Lima. Carmen was forced to leave Northern Peru in the early 90’s because of misery and terrorism. A few years ago, thanks to a friend of hers, she was able to join a group of 10 persons who are guarantors one to another. She was granted a first loan of 500 soles (about USD 150) which enabled her to become a travelling seller. But it is after being trained by EDAPROSPO, that her situation really improved: today Carmen owns her space to sell, that she bought thanks to a 2500 sol loan, and buys the commodities thanks to an individual loan of 600 soles renewed every 4 months. Her monthly net income, after loan reimbursements, is of 800 to 1000 soles, i.e. more than the average income. Carmen can now bring up in dignity her 4 children.
(From an interview by SIDI’s shareholders during their visit of SIDI’s partners in Peru)