Lack of access to finance is regarded as the most important constraint to the development of businesses in low-income countries and Colombia is no different with just 46% of the population over 15 holding bank accounts, according to World Bank indicators.
Contributing to increased financial inclusion is a key priority for Norfund in this target market. Now, Norfund has closed a USD 8MM eq. peso denominated loan with Kredit in Colombia to support its lending program to teachers and pensioners.
Loans taken with Kredit are often used to help families consolidate their debt, to improve their credit scores and become bankable and to invest in home improvements, health, and further education for family members. These loans contribute to an improved quality of life for borrowers and play an important role in economic development.
Kredit counts with 56 agencies and 19,000 clients in different cities in Colombia including some of the most rural areas.