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Partner Profile: Finamiga

Finamiga is a Colombian microfinance institution in GP’s Productive Asset Finance initiative. Finamiga works to promote financial inclusion of microentrepreneurs and households at the bottom of the pyramid, particularly in marginalized areas affected by conflict, by offering products and services tailored to their needs.

The Challenge

Many microentrepreneurs and small-scale producers cannot afford the up-front costs associated with productive asset purchases and do not meet the lending requirements of traditional banks, constraining their ability to grow their business. In Colombia, only 14% of adults have borrowed from a formal financial institution, and that figure drops to 9% among the poorest 40% of the population.*

 

Who is Served

Finamiga serves over 9,000 low-income microentrepreneurs and small-scale producers, 51% of whom are women and 44% of
whom live in rural areas. Twelve of the municipalities in which Finamiga works are considered by the Colombian government as priority areas for post-conflict recovery.

What is Delivered

Finamiga provides clients with tailored credit to purchase a motorcycle as an income-generating asset, alongside maintenance support and product warranty through partnerships with motorcycle dealerships.

 

Why it is Impactful

Access to a motorcycle through affordable financing offers clients the opportunity to enhance their business revenues and save on costs associated with other forms of transport or more expensive financing options, resulting in increased net income.

 

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* Source: World Bank Global Findex 2017.