Latin America Business News
Progreso Financiero Reaches Milestone 150,000 Loans and $140 Million Loaned to Help Hispanics
Photo: Progreso Financiero
Progreso Financiero, a financial institution dedicated to the economic advancement of lower-income Hispanic families, today announced that since its founding in 2005 it has loaned more than $140 million through more than 150,000 microloans to Hispanic customers.
More than 23 million Hispanics in the United States are unbanked or underbanked. Unlike mainstream institutions, Progreso provides loans without collateral to clients who lack credit history using its sophisticated risk scoring system that emphasizes a client’s moral collateral and true capacity to afford a loan. Demand for Progreso loans has rapidly increased with more than 70,000 loans fulfilled in 2010 alone.
“We define our success by the social impact of our lending within the Hispanic community. Every one of our 150,000 loans helps create opportunity and empower someone that might have been turned away by another lender or has been underserved by a more mainstream financial institution. We are proud to have a meaningful impact in the larger Hispanic market,” said James Gutierrez, founder and CEO of Progreso Financiero. “It is increasingly difficult for Hispanics in the United States to attain financial security and achieve their dreams. We are providing them with the capital, credit tools, and financial education they need, and doing it at a scale that matters.”
With limited-to-no credit history, underbanked Hispanics have virtually no opportunity to access mainstream credit products from larger banks. Progreso Financiero fills this gap in today’s financial system by helping individuals with thin or no credit files establish credit and fulfill their banking needs.
Progreso Financiero educates their borrowers about the responsible use of credit and offers small dollar loans — typically $1000 — that can be paid back in fixed installments at rates far below costly alternatives. As customers pay back their loan, they establish a credit history and after three successful small loans can achieve a credit score of 660, opening the doors to mainstream financial services and a brighter financial future.
More information about Progreso Financiero and its loan offerings is available at the Progreso Financiero website.