IDB Approves $20mn to Support Housing Finance Program in Peru

Nov 2013
Lima, Peru, November, 11 2013 - The Inter-American Development Bank (IDB) has approved a loan of US$20 million to support Edyficar program aimed at expanding access to housing and finance to low-income individuals in Peru.

The loan will allow Edyficar, a financial institution specialized in the microenterprise segment, to expand and improve its program Edyvivienda, which provides access to finance for incremental housing construction for low-income individuals and their families, in particular small entrepreneurs.

The financing from the Bank's Opportunities for the Majority Sector will help address Peru's housing shortage, currently estimated at 72 percent, one of the largest gaps in the region.

"The loan from the Opportunities for the Majority Sector will enable Edyficar to scale up an innovative business model that brings the interests of a financial institution in line with those of other key actors in the incremental construction sector," said IDB project team leader Manuel Fernandini. 

He continued, "Over 80 percent of the end beneficiaries earn less than US$200 per month, and 42 percent of the heads of households served by the program are women."

Resources for incremental housing improvements will alleviate deficiencies in quality and overcrowding and will improve access to basic services such as water sewage and electricity for 20,000 households. 

The IDB's Opportunities for the Majority initiative promotes and finances market-based, sustainable business models that bring together companies, local governments, and communities in developing and supplying quality products and services to people at the base of the socio-economic pyramid in Latin America and the Caribbean.

Edyficar was established by CARE Peru in 1997 with the mission of providing access and financial services to low-income individuals, especially microenterprise and small business owners. In 2009 it was acquired by Banco de Crédito del Perú (BCP). It has nationwide coverage, with a presence in 21 of Peru's 24 departments.

Source : andina

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