Mission: To be an institution that specializes in microfinance, with the fundamental objective of contributing to the socio-economic development of Nicaraguan micro and small businesses through our financial services, in an agile, timely, and efficient manner, to achieve sustainability and improvement in the standard of living of our clients and thus, the financial self-sufficiency of the institution.

Specialty: Rural Lending in Remote Northern Regions

Organization Profile: FUNDENUSE is critical to the economic development effort in Nicaragua. It serves one of the poorest and remote areas of the country, the northern region.

FUNDENUSE supports the northern region by supplying loans for consumption, commerce, housing, and agriculture. Through these financial services, FUNDENUSE specializes in lending to rural areas. This focus is especially important, because rural lending, to women in particular, is one of the most under-served credit needs in Nicaragua. FUNDENUSE uses a combined individual and group lending strategy, allowing it to reach more of the poor within the community. Group lending is created through the formation of solidarity groups. These groups of four to nine members allow those lacking collateral to receive loans. The solidarity group vouches for its members, promising to help them repay the loan should the borrower experience a tough year. Group lending, combined with individual loans, allow FUNDENUSE to reach borrowers who are exceptionally poor, as well as those who are able to supply their own collateral.

NICA Fund Partner Since: 2005

Borrowers: FUNDENUSE has 15,359 borrowers. Of these individuals, 54% are women and 46% are men (as of June 2007).

Lending Portfolio: FUNDENUSE has an average loan size of $687 and a total lending portfolio of $10,552,130. Of this portfolio, 42% is allocated for commerce, small enterprise, and industry, 21% agriculture and livestock, 17% consumption, 15% housing, and 4% services (as of June 2007).