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Credit Development Program PRODEC
PRODEC is an ongoing ASAPROSAR’s program that started in 1994 which mission is “to provide flexible financial service, equity and appropriate to the needs of micro business sector, to promote their empowerment and sustained improvement in their quality of life”.
Geographical location:
The area of influence of PRODEC is concentrated in the Departments of Santa Ana, Sonsonate, Ahuachapán and La Libertad. Being treated with three branches one located at ASAPROSAR compound, another in Colon Santa Ana’s office and the last one in Sonsonate city, to assist users of rural credit in the areas of South Ahuachapán and the department of Sonsonate.
Currently has presence in 42 municipalities, in three departments of the west of the country, and two departments in the central area (San Salvador and La Libertad).
General Objectives:
To help improve the living conditions of the population of the enterprise urban sector, urban marginal and rural west of the country and two department of the central area (San Salvador y La Libertad).
The ASAPROSAR’s credit development program is form by two subprograms: Microenterprise Credit and Rural Credit, bringing the way to offer the credit product detailed below:
Ø Micro enterprise credit program( MEC)
Ø Rural Credit Program( RUC)
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Name of de Subprogram: MICRO ENTERPRISE CREDIT (MEC)
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The program of MEC works with two types of methodology according the costumer borrowing and their business needs.
Individual’s credits:
Product aimed to meet financial needs of small business survival and build simple, with a year minimum experience in a management of economic units. The borrowing amount is between $ 100.00 to $ 3,000.00 for weekly payments, fourteen or monthly, in period of 4 to 36 months, secured by a trust, pledge, mortgage and/or mixed, with a fee for administrative expenses of 5.5% and a 0.25%insurance of the debt amount, and an interest rate of 3% monthly on balance. Working capital financial and investment capital to micro business in the trade sector, industry and services.
Credits solidarity groups:
Methodology aimed to men and women subsistence sector traders and/or simple accumulation of the urban or semi-urban area, incorporating a total of 5 to 10 persons each, so that through the joint guarantee may be subject to finance their productive activities in amounts between $60.00 to $ 1,500.00, in terms of 4 to 6 months, according person’s pay capability, have their own guarantee, but not enough to support access to an individual loan. They have the characteristics values of gender equality, solidarity, integration and a promotion of a culture of saving. Directed by a counsel in accordance with the frequently of their payments and for authorities elected by members of their own groups. Interest rate is 3% monthly from balances and commission of 5.5% plus 0.25% debt insurance from loan given to each solidarity group.
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Total Population Served :
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517
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SubProgram Name: RURAL CREDIT PROGRAM (RUC)
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The rural credit program starts in 2000, as an alternative of development for entrepreneur’s women of poor municipalities and the rural areas of the western part of the country. Based on the experience and methodology of Grameen Bank of Bangladesh adapted to the culture and context of women in our country, making ASAPROSAR pioneers in financial support to poor women in the country.
Rural Credit Department:
This methodology has to responsibility levels that come together to form one whole structure:
Group: is a collective of women voluntarily affiliated, who live in the same community, share the same living conditions, belong to the same socioeconomic status, enjoy mutual respect and democratically elect their leaders, they rotate their position every two cycles. The group is form by a minimum of 4 and a maximum of 5 users.
Center: This is a joint venture between 2 and 6 credit groups, to recognize and to support each other, choosing four members for the policy center, which might have representation from most of the partner groups, The center is comprised of a minimum eight in a maximum of 30 users.
The monitoring is done by a weekly meetings or every fourteen days lead by a credit advisor. The fund amounts ranging from $ 58.00 to a maximum of $ 1,000.00, weekly payments or every fourteen days in a period of 4 - 6 months. The warranty is solidarity. Pay an interest rate of 3% monthly and a commission of 4.75% from the given amount in concept of stationery, notary costs, plus, 0.25% for insurance debts
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Total Population served:
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2432 to April 2012
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Project Budget for this year is $352,984.36.
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