BANCOVELO

	PARTNER: Banco Popular Covelo (BANCOVELO) WEBSITE: www.covelo.org COUNTRY: Honduras

BANCOVELO started in the 1980s as Fundación Covelo, a project of ANDI (the Honduran National Association of Industry), with the goal of improving the standard of living of micro and small entrepreneurs in Honduras.  The organization began by offering technical assistance to microfinance institutions and in 1991, and with support from USAID, it began offering financial assistance to these same organizations, mostly in the form of loans. In 1995 the organization began offering loans directly to microenterpreneurs. As of the end of 2007, BANCOVELO has 23 branch offices in both urban and rural areas around the country.

BANCOVELO uses both individual loans and solidarity group loans. Its product portfolio includes microenterprise loans, small and medium enterprise loans, housing loans, consumer loans and second level loans (loans to other microfinance institutions). A total of 56% of its retail microfinance portfolio is with women borrowers and 87% is in urban areas. 

ORGANIZATIONAL VITALS