Fundacion Para La Promocion y el Desarrollo

Gross Loan Portfolio USD, 2010: 15.1 million

Number of active borrowers 2010: 17,324

Average loan balance per borrower USD, 2010: 871.2

Deposits USD, 2010: 0.0

Assets USD, 2010: 20.2 million

Number of depositors 2010: 0

Mission:

Promover el desarrollo socioeconomico de Nicaragua, impulsando programas para sectores con iniciativas para el mejoramiento de sus condiciones de vida.

Background and Main Challenges:

El 16 de octubre de 1992 nació, La Fundación para la Promoción y el Desarrollo “PRODESA” como ONG (Organismo No Gubernamental, con su primera entrega de de créditos a microempresarios, inauguro el programa la Directora Ejecutiva del entonces PAMIC (Programa de Apoyo a la Microempresa), el ... Read more

Address:

BANCENTRO 1 cuadra al Oeste

Juigalpa

Chontales

Nicaragua

Phone:

(505) 2512-2955

Fax:

(505) 2512-0829

Email:

fprodesa [at] turbonett [dot] com [dot] ni

Products and Services:

Loans

Fund Transfer Services

Services Provided:

Business Development Services

Looking for (Investment Types):

Loans in Local Currency

Donations

Loans in US$

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1992

FYE:

31-Dec

Current Legal Status:

NGO

Regulated:

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in urban areas	1
Women	2
Clients living in rural areas	3
+ Development goals (ranked by importance)
Growth of existing businesses	1
Housing	2
Increased access to financial services	3
Employment generation	4
+ Poverty targets
Low income clients
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
Loans for education
Housing loans
Préstamos para ganadería
+ Savings products offered
+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
Enterprise skills development
+ Education services offered
Child and youth education
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ 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.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
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
Declining balance 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
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution identifies enterprises with environmental risk
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
ASOMIF	Network Affiliation
Hivos	Funding
Incofin - VDK MFI Loan Portfolio	Funding
MicroRate	Rating
Oikocredit	Funding
Red Katalysis	Network Affiliation
REDCAMIF	Network Affiliation

MFI Report