Frequently Asked Questions
What is financial inclusion?
According to the World Bank, “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.” FINCA is leading the way in expanding financial inclusion in underserved, low-income communities by providing access to credit, savings accounts, transfer services and insurance allows people to be more productive in their small businesses and to have more control over their livelihoods and lives. Approximately 2 billion people don’t yet use formal financial services.
How many people in the world are unbanked?
2 billion people worldwide are unbanked – they don’t use banks or microfinance institutions to save or borrow money.
What is the average loan size of a FINCA loan?
FINCA’s average loan size is $831.
Why does FINCA charge interest on their loans?
FINCA charges interest in order to cover its costs and achieve operational sustainability. The interest charged on our loans supports our credit staff in the field, allowing us to bring services to customers, even in remote areas; enables us to borrow, re-lend and repay commercial capital, which means we can reach many more low-income customers; and ensures that we remain a reliable resource for our customers. Before we lend to customers, we provide training that ensures they understand not only our rates, but what it will mean for them and their business to invest and repay a loan. Interest rates vary greatly around the world and reflect a variety of factors, such as local regulations, the type and size of the loan, prevailing inflation rates and local costs of borrowing.
What is the relationship between FMH and FINCA International Inc.?
FINCA International Inc. is the creator of the FINCA network and the majority shareholder of FMH, which manages and operates the network.
Who are FMH’s investors?
FINCA Microfinance Holding Company LLC (FMH) is composed of seven investors who share our mission: FINCA International, our founder and majority owner, IFC (International Finance Corporation), a member of the World Bank Group; KfW, the German development bank; FMO, a Dutch development bank; Zurich-based responsAbility Global Microfinance Fund AG; Triple Jump, a Netherlands microfinance investment firm; and Netherlands-based Triodos Bank.