Status update — December 17, 2021:

Kiva and EDAPROSPO have agreed to end their partnership after nearly 14 years and more than $16 million in loans raised. This partner has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank EDAPROSPO for the years of collaboration and wish them success in their future endeavors.

Status update — October 10, 2019:

Kiva has moved this Lending Partner to paused status which means EDAPROSPO is no longer fundraising loans on Kiva, though Kiva fully expects the partner to repay its outstanding balance to Kiva lenders. EDAPROSPO has been moved to paused status after Kiva repeatedly found issues with EDAPROSPO's operations. Kiva worked with EDAPROSPO to develop a repayment plan for 100% of the outstanding balance over the next 9 months.

Status update — July 24, 2018:

Kiva recently re-assessed the level of risk associated with loans from this Lending Partner. During this process, our analysts gathered updated operational and financial information about the institution, spoke with key members of the staff and analyzed the Lending Partner’s loan products. As a result, EDAPROSPO's risk rating is now listed as 2.0 stars instead of 3.5 stars. The primary reasons for this change in rating are turnover at the management team and board level and structural changes in the supervisory and accounting functions of EDAPROSPO.

Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

Partner Description: ​

Founded in November 1978, EDAPROSPO (El Equipo de Educacion y Autogestion Social) focuses on advancing the development of Peru's impoverished communities. The organization works with local communities and organized groups in an effort to expand the knowledge and abilities of low-income populations so that they are able to improve their quality of life and contribute to a better society.

PROSPERIDAD is its microlending program that collaborates with Kiva. As of December 2012, EDAPROSPO had more than 5,600 borrowers (87% of whom are women) with a portfolio of US$2.7 million. The organization uses two different types of credit methodologies: Communal Banks (called communal piggy banks), and individual loans.

The Communal Banks are made up on average of nine members and represent 70% of the portfolio. The main characteristic of the Communal Bank loan product is its flexibility with interest rate, amount and term which can be customized to the client’s needs and background. Other important Communal Bank characteristics are the thorough client attention provided by loan officers, the promotion of the organization’s values and the development of a savings culture directly managed by the clients themselves.

The microlending program’s market niche is made up of small and micro business owners, in the majority entrepreneurial women located in marginalized urban and rural areas of Peru and pertaining to low-income social classes. They mainly focus their economic activities on the commerce and service sectors with a minority having productive related jobs including artisanship and farming.

In addition to central headquarters, EDAPROSPO currently has 7 branches in the Lima districts of Comas, Vitarte, San Juan de Lurigancho, Huaycan, Los Olivos, and Huarochirí. The first five are located in the urban areas on the outskirts of Lima, with Huarochirí located in a more rural sector of Lima. The newest office is located in the province of Junín in a city called Huancayo, high in the central Peruvian Andean mountain range.