13 Evidence from a Randomized Microcredit Program Placement Experiment

The results of a randomized impact study done in Nogales, Agua Prieta and Caborca are in and they can help us determine how to best serve our clients.

Win Some Lose Some? Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco
Manuela Angelucci, University of Michigan
Dean Karlan, Yale University, Innovations for Poverty Action, and M.I.T. J-PAL
Jonathan Zinman, Dartmouth College, Innovations for Poverty Action, and M.I.T. J-PAL For release: May 14th, 2013

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8 Client Profile – Señora Martinez

Señora Martinez was interviewed at the Nogales, Mexico Expo Oct 29, 2011.  The Expo was put on by a charitable non-profit microcredit organization supported by ProMex Group.  Her business is making wedding dresses and accessories.  She has been in business for 20 years.  She borrowed 5,000 pesos (US$420) six months earlier to purchase an electric sewing machine.  The new sewing machine allows her to work faster and produce more and better quality products.

charity Mexican Socially Responsible Investing

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7 Client Profile – Señor & Señora Rodriguez

Señor & Señora Rodriguez are in the food preparation business.  They have three children.  This business is their entire income.

They borrowed 2,200 pesos (US$180) and that allowed them to buy additional food items, such as: oil, flour, and supplies.

The interest rate was not too much.  They make a 328 peso payment (US$27)  every 14 days.  The loan duration is a total of four month. She learned about EnComun (a charitable micro-finance organization supported by ProMex Group) from a friend.

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6 Client Profile – Señora Garcia

Maria Rosa Garcia sells new and used clothing. in Nogales, Mexico  She buys clothing  in US and resells in Mexico.  She tries to buy seasonal items that will sell well and quickly. Her goal is to turn her inventory monthly.

She has been in this business for four years.  She borrowed 2,500 pesos (about US$200) initially and now up borrows to 5,000 pesos (US$415) which is her own self imposed limit.  She is approved by EnComun (a charitable micro-finance organization supported by ProMex Group) for 10,000 pesos (US$830).  She has been very pleased with the loan process and interest rates.

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4 Client Profile – Señor & Señora Melendez

Señor & Señora Melendez have two businesses in Nogales, Sonora, Mexico.  For one, they sell fresh and artificial flower arrangements.  The other is professional photography for weddings, quinceañeras, and special events.

They borrowed 10,000 pesos (about US$833), from a charitable micro-lending organization supported by ProMex Group, five months ago to start the flower arrangement business.  This gives them more stability with the two businesses.

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3 Client Profile – Señora Castro

Señora Castro borrowed  2,000 pesos (about US$165) a month ago to start a new “fast food” business.  Her loan came from a ProMex Group supported charitable micro-finance organization in Sonora, Mexico.  She used to rent a microwave oven but with her loan, purchased one.  She sells her food close to her home at a little stand.  She marks up what she sells about 40%.

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