Fundación Adelante | MFIs in Honduras

Gross Loan Portfolio USD, 2010: 867,028.3

Number of active borrowers 2010: 5,950

Average loan balance per borrower USD, 2010: 145.7

Deposits USD, 2010: 348,918.5

Assets USD, 2010: 1.2 million

Number of depositors 2010: 9,917

Mission:

The Adelante Foundation aims to increase the standard of living for the poorest of the poor women in rural Honduras by providing small loans for women to start and grow businesses.

Background and Main Challenges:

Working in remote rural villages (population 300 - 5,000) with relatively low population densities means getting to our borrowers is a challenge. We are the only organization in Honduras working in very small rural villages. Adelante has also begun to work in peri-urban areas, though rural ... Read more

Address:

PO Box 4473

Englewood

80155

Honduras

Phone:

011 504 440 1405

Fax:

011 504 440-1405

Email:

ellen [at] adelantefoundation [dot] org

Website:

www.adelantefoundation.org

Main Funding Sources:

Grants

Loans

Products and Services:

Loans

Voluntary Savings

Training and Consulting

Services Provided:

Business Development Services

Health

Education

Looking for (Investment Types):

Loans in Local Currency

Donations

Guarantees

Capacity Building Grants

Loans in US$

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1999

FYE:

31-Dec

Current Legal Status:

NGO

Regulated:

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Women	1
+ Development goals (ranked by importance)
Poverty reduction	1
Gender equality and women's empowerment	2
Increased access to financial services	3
Growth of existing businesses	4
Development of start-up enterprises	5
+ Poverty targets
Very poor clients
Poor clients
Low income clients
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Housing loans
+ Savings products offered
Compulsory savings accounts (cash collateral)
+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
Financial literacy education
Basic health/nutrition education
+ Health services offered
+ Women's empowerment services offered
Leadership training for women
Women's rights education/gender issues training
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	Educación en temas de desarrollo de sus negocios y temas de salud y bienestar familiar.
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to remote/rural communities
Outreach to women
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
Fern Software	Vendor
Grameen Foundation	Network Affiliation
MFSI	Vendor
REDMICROH	Network Affiliation

Former
Name	Relationship
Kiva	Funding

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