Microfinance > MFI

Created in 1984 as a non-profit organization, the structure has been taken in 1986 by Bolivian and international investors who have transformed it into an NGO-like foundation. Facing an increasing demand for financial services from the poorest populations, and being not able to respond to it under this form, the NGO was transformed into a commercial bank in 1992. Since this time, the number of customers and the size of the amounts under management have constantly increased.

BancoSol is an MFI with a high level of development. The offered products is very wide and goes from microloans for business, for real estate, to consumption, including life insurance, health insurance and services to receive remesas (money sent from abroad by Bolivian workers).

BancoSol only lends to people who already have an existing micro businesses for more than one year.

The promotion is assumed in the street with flyers, or mouth-to-ears, while the competition and image positioning is done with advertisement campaigns in all the medias (radio, television, newspapers, etc.).

Once a future customer (aged from 21 to 65) has filled the loan application, there is a demand at the national risk general office in order to check if the clients already have any credit and if they do not have any failure to pay back in the past, a visit to the customer house and microbusiness is also done, a guaranty is asked (such as a third people or property papers for example), and the application is scored and evaluated in a credit committee.

The reimbursement plan is established according to the activity sector of the client’s microbusiness: the payment can be from weekly to quarterly.

The microloan can be indifferently in Bolivianos (BOB) or in USD.

The pay back of the loans can be done in any of the 57 offices of BancoSol in all the country. It is possible to reimburse a part or the totality of the microloan by anticipation without any extra fee.

If a customer does not pay, an 11 progressive stages procedure allows finding a compromise with the client by adapting to his reality before going to the court.

The world economic crisis has a good impact in the way that people prefer creating their own job by creating their own microbusiness.

The refinancement is assumed by BancoSol equity and by public investments.

Any form of microbusiness is represented.