Peruvian rural entrepreneurs gain access to credit
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More than 35,000 rural Peruvians received loans through municipal cajas, local financial institutions, funded by the French Development Agency (AFD).
Yolanda Vásquez of Urubamba, Cusco, initially faced difficulty securing a loan from traditional banks due to a lack of collateral. A municipal caja offered her a small microloan of 500 soles, allowing her to rent land, purchase seeds, and begin growing organic produce for the Cusco tourist market.
Yolanda’s success demonstrates how initial small loans can help entrepreneurs build credit histories and access larger amounts of funding. The AFD has disbursed over $90 million to Caja Huancayo, Caja Cusco, and Caja Trujillo to extend these loans. The agency plans to expand financing to two additional municipal cajas on the country’s coast, with a goal of reaching 50,000 people. Nicanor Choquemaque and his wife, Marina Hinojosa, in Anta, Cusco, also benefited from the program.
They used loans from a municipal caja to gradually purchase land and expand their agricultural production of potatoes, quinoa, and beans. They appreciated the caja’s lower interest rates and a payment schedule aligned with the agricultural cycle, offering six-month payment terms. The AFD supports these loans with technical assistance and funds to help the cajas develop new financial products and train their staff, focusing on gender equality and climate change adaptation.
