Sustainability, anchor of growth for microfinance institutions

Tuxtla Gutiérrez, Chis. The integration of social sustainability principles in microfinance has been consolidated as a profitable model for entities in the sector. This is what Avanza Sólido proposes, a Sofom focused on financing for micro-entrepreneurs, mainly women, which has articulated its credit operation with capacity-strengthening schemes to boost the social mobility of its clients. The institution concentrates around 80% of its portfolio in rural areas of the southeast of the country, where there are still gaps in basic infrastructure – such as limited access to health services, education, and connectivity – that condition economic development. In this environment, the financial institution has placed a portfolio of over 1,400 million pesos, with more than 58,000 active clients, of which more than half are women. The average financing amounts are around 30,000 pesos for individual credits and 42,000 pesos for group schemes, designed for small-scale productive activities. ...