MiCredito in Nicaragua

MiCredito , a MEDA-owned microbank, opened its doors to the public in September 2004 and has been doing a brisk business making micro-loans to local entrepreneurs. MEDA pioneered micro-lending in Nicaragua in 1990 when it created CHISPA with one branch and $100,000 in capital which eventually grew to a 12-branch operation. In 1999 it was merged into a regulated Nicaraguan bank while taking in new shareholders. After the sale some of the former senior managers of CHISPA suggested starting a new microbank with emphasis on rural lending. MiCredito was the outcome.

MiCredito is intended to not only service the growing urban market for micro-credit, but also to develop a successful rural micro-lending program. The business is staffed with a competent management team including credit officers who use motorcycles to visit clients. More staff and branches will be added as it grows. Business so far has come mostly by word-of-mouth advertising based on the strong reputation of the well-known staff and the good service being provided.

---

Unique Designs

After 10 years of administrating her mother’s dressmaking shop, 31 year old Angela Gisell Hernandez is now the owner of this shop that provides jobs for seven family heads. She not only designs and sews, but also is in charge of marketing the finished products.

Her designs include dresses, slacks, skirts and blouses. “My creativity comes from watching my mother day after day design and sew,” Angela said. The first loan of $1,200 that Angela received was for working capital, which she was able to pay back in seven months instead of a year like she planned. Her second loan of $3,000 was used to purchase textiles.

She will continue to expand her distribution channels, add new designs and might even start a new business…Cushion Designs. For now she is using fabric remnants to sew cushions, and making plans for their distribution.

---