Mibanco - Peru
Mibanco's roots go back to the early 1980s, as an NGO that began lending to the poor. Since then it has evolved to become the largest microfinance bank in Peru serving micro- and small enterprises (MSEs) and other low-income clients. Mibanco offers a wide range of financial services.
The Housing Context
The housing deficit in Peru is estimated at 1.5 million housing units (23% of all housing units in the country). 50% of them are overcrowded, 35% lack access to basic services, 15% have walls and/or roofs in bad condition. Low-income people have no access to quality construction, due to their limited resources they are forced to engage in incremental self-construction of their own houses with the help of self-trained local masons. This results in low quality housing in terms of design, durability, functionality and quality of materials used.
The Housing Programme
Mibanco offers 3 housing loan products, all combined with obligatory credit-life insurance:
- Mihipoteca - a mortgage loan for clients with collateral
- Micasa - for gradual housing improvements, repairs, expansion
- Crediagua - for connections to potable water and sanitation
The bank reaches out to mostly micro-entrepreneurs and low-income salaried workers. Loans are offered together with educational material (video and infographics) to all clients (developed with Habitat for Humanity). The bank also cooperates with homeowners associations and a network of construction material suppliers. Mibanco also organises educational road shows to promote water and sanitary improvements.