The EU bank’s loan qualifies for the 2X Challenge, an initiative lead by G7 development institutions, which deploys and mobilises capital to empower women and enhance their economic participation. In 2021, the Bank has financed intermediated investments (compliant with the 2X Challenge) totalling €357.2 million across geographies, out of which €179.95 million directly contributes to women’s economic empowerment.
Brazil microcredit loans for women overcome financial limitations
Gender inequality is still a problem in Brazil. Despite having a similar educational level, Brazilian women generally don’t have access to the same opportunities as men. Women earn 25% less than men in Brazil. To compensate, women are forced to take on multiple jobs.
Through Crediamigo Delas over 300 000 women received over 500 000 loans between 2021 and July 2022.
“When women come to us to apply for Crediamigo Delas, they want to ensure the survival of their families,” Feitosa says. “With the support of our microcredits, they ultimately develop and grow their businesses. They also have a positive impact in their communities and neighbourhoods, by generating income for their families and new jobs.”
Brazil microcredit loans for groups of women
Crediamigo Delas finances investment and working capital, with a term of four to 24 months. Loans are limited to around €2 350 per client. For credit approval, the client’s payment capacity and the characteristics of the business are analysed. Apart from the credit, Banco do Nordeste proves advisory services for the clients of Crediamigo, and keeps several partnerships with other institutions to help women entrepreneurs.
Crediamigo Delas also can be issued as a “solidary loan.” “The solidary loan means small groups borrow together and encourage their members to repay in a timely manner,” says Joana Sarmento, a loan officer at the European Investment Bank who works on the project. “This works very well with female clients, who tend to re-invest their income in the health and education of their families.”
The bank’s experience suggests women are more likely to start businesses in solidarity groups. They are more cooperative and willing to share the lessons learnt. “It’s very common for a woman to encourage friends to get into entrepreneurship or to encourage them to take that first loan,” says Feitosa. “An entrepreneur teaches and stimulates another."
Moura is a good example.
“I got involved with Crediamigo through a solidary credit,” she says. “It helped me overcome my hesitation and inspired me to develop my business further.”