Emprende Microfinanzas to grant loans of up to 24 million pesos to entrepreneurs. The alliance with Corfo’s Investment Guarantee Fund (FOGAIN) will enable them to access funding.
With the aim of assisting its customers and supporting their businesses, Emprende Microfinanzas is developing financial products with increased amounts for entrepreneurs.
The initiative, which is supported by Corfo’s Investment Guarantee Fund (FOGAIN), gives micro and small businesses access to larger amounts of funding than those usually offered by Emprende. Most loans are primarily intended for informal micro-enterprises.
Pablo Coloma, general manager of Emprende Microfinanzas, said: “We currently extend loans from 100,000 pesos and our average microcredit is for 600,000 pesos. We want to support the growing businesses of our customers and the strategic alliance with Corfo is in line with our mission, because it enables us to increase the amounts and extend the terms we can offer to help micro and small businesses improve their capacity. We also expect to attract new customers, probably with formal businesses, who need more funding to grow their companies”.
FOGAIN enables Emprende customers to finance up to 100% of their investments with amounts ranging from 2 to 24 million Chilean pesos, depending on the assessment of the investment project. The loans can be used for investing in infrastructure improvement, purchasing machinery, equipment, transport, business expansion, etc.
One of the main characteristics of the credit offered by Emprende Microfinanzas is that the loans are in pesos and with a maximum repayment term of 60 months, in monthly, quarterly, half-yearly and annual installments, depending on the customer’s sector of activity. The disadvantaged entrepreneurs who are eligible for this guarantee coverage must have annual sales of up to UF 7,500, equivalent to around 180 million pesos.