About Instituto de Desarollo Regional "Cesar Vallejo" (IDERCV)

Peru Map

IDERCV is a non-government organisation that specialises in microfinance and rural development in Northern Peru. IDERCV works in La Libertad, Tumbes, Cajamarca and Ancash and it has its headquarters in Trujillo. IDERCV was founded in 1990 and is a member of COPEME (Consortium of Private Organizations promoting Micro and Small Enterprises) and PROMUC (Consortium of NGOs promoting Women and Communities) and the Chamber of Commerce of the region of la Libertad.

What is IDERCV's mission?

IDERCV's mission is to be an established, competitive and reliable institution that provides social and economic services to help improve the living conditions of vulnerable populations, with a special focus on excluded rural and peri urban areas of Peru. Their credit programme focuses on supporting women, rural communities, artisan fishermen and young entrepreneurs with financial and non-financial services.

What types of financial services does IDERCV provide?

IDERCV offers the following financial products:

  • Individual credit for urban and rural Micro and Small Enterprises
  • Credit for artisanal fishing and extractive activities
  • Agricultural credit for two value chains: credit MI VAQUITA for the milk products value chain and credit CREDIPALTA for the avocado value chain
  • Credit for personnel work
  • Credit for young entrepreneurs

IDERCV also provides non-financial services such as:

  • Credit investment advice including financial education and business management courses for their clients
  • Outsourced free medical care: IDERCV has an agreement with the Laboratory ESCALAB that gives their clients 20% off medical analyses

How much interest does IDERCV charge?

Microfinance institutions (MFIs) charge higher rates of interest for several reasons. Firstly, the administrative costs of making many small loans are much higher than making fewer larger loans; secondly, they take more time assessing the feasibility of applications and thereby reducing risk because borrowers cannot offer traditional forms of collateral nor do they have salaried incomes; thirdly MFIs often operate in geographically remote areas with low population densities and this means that they incur greater operational costs; and fourthly they accompany all their loans with a range of training and technical advice. In addition, inflation is generally higher than in countries such as the UK. However, the rate of inflation in Peru is currently one of the lowest of Latin America with 2.25% registered in October 2017. On an annual basis the average interest rate charged by IDERCV is around 48%, which is similar to that charged by other NGOs specialized in microfinance program (between 40% - 60%).

IDERCV puts special emphasis on its social commitment toward vulnerable populations and has therefore accompanied their financial products with non-financial services (training and technical assistance to develop the entrepreneurship activities of their clients or health services). Moreover, they have developed their own software that analyses the capability of their more vulnerable clients to take on debt. This system also enables them to offer more vulnerable clients a slightly lower rate of interest.

Does IDERCV provide any training?

Yes, IDERCV offers its clients financial education and business management courses.

Where can I find out more information about IDERCV?

Further information about IDERCV is available from the organisation's website at http://www.idercv.org and it also posts its profile on Mix Market at https://www.themix.org/mixmarket/profiles/ider-cv.

 

IDERCV: Basic facts and figures

Full name:

 

Instituto de Desarollo Regional "Cesar Vallejo"

Established:

 

1990

Average loan size:

 

$860

Number of active borrowers:

 

2,233

Proportion of loans given to women:

 

61%

Gross loan portfolio:

 

$2,123,515

Portfolio at Risk (PAR) at 30 days:

 

3.92%

* Information correct as of August 2017

 

Peru: Basic facts and figures

Population:

 

31,826,018

Life expectancy at birth:

 

75 years

Adult literacy rate:

 

94%

Access to improved water source:

 

87%

Infant mortality rate:

 

15 per 1,000 live births

Maternal mortality rate:

 

68 per 100,000 live births

GDP per capita:

 

$5,950

Inflation:

 

-2.25%

Source: World Bank Data, INEI (November 2017)

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