Insotec, Crédito para el Desarrollo


INSOTEC | Crédito para el Desarrollo

INSOTEC is a leading microfinance NGO with nearly 40 years’ experience and family business roots, working to reach the most vulnerable population and smallholder farmers in Ecuador.

INSOTEC has evolved to serve small producers in Western Ecuador with the aim of incorporating them into structured production cycles through value chain alliances. It currently offers productive loans for agriculture and other activities, under individual methodology to low-income population, as well as microinsurance, financial literacy, technical assistance (TA) and health services. In 2019 it has developed its agricultural microinsurance, pioneer in the country, after focusing on the development of value chain alliances with 6 representative Agri companies in the segments of corn and milk.

As of Dec-21, Insotec has a geographically diversified network in central and western Ecuador, present in 8 regions and serving 17,862 clients. 72% of its clients are based in rural areas, 43% are women and 60% are farmers.

INSOTEC is developing its environmentally sustainable initiative by designing & implementing an environmental policy, in addition to launching a green credit product in 2022. This product will provide financing at preferential rate for certified environmentally sustainable activities.

Carrusel image: Philippe Gras on Unsplash.

Country: Ecuador

Investment: EUR 4 million, in two tranches

Investment type: Senior unsecured debt

Technical Assistance: Pending confirmation

Date of investment: Dec-20

Insotec. Mapa

Huruma: Transforming Lives

Huruma’s investment in Insotec aims to transform the lives of smallholder farmers through the following theory of change:

Actividades: EUR 4 MM focused on Agricultural financing + Technical Assistance to strengthen credit process digitalization and value chains

Output: Increase its disbursed portfolio included in value chains by 5x and launch an Agri-product by 2023.

Outcome: Increase 7.554 farmers’ crop yields and 6.163 families’ rural income*.

(*) Metrics calculated on the basis of the study estimates “Understanding Impact Performance:Agriculture Investments;” (GIIN, 2020)
Huruma: Transforming Lives