A giant in microlending

Major bank’s small loans make big splash in Chile

Microentrepreneur at work: Juan Domingo Maggio, one-half of a husband-and-wife business, turns out silver, bronze and silverplated artifacts at his workshop in Santiago, Chile. Before the Maggios obtained their first small loan back in 1995, they did not have the equipment needed to silverplate their wares. That shortcoming cost them money, since they had to pay others for that service. Banefe, Chile's leader in microlending, has since given these artisans three more loans. Maggio now uses a bank card that allows him to withdraw funds whenever he needs from a preapproved credit line. Thanks to a government program that subsidizes private sector microlending, nearly 100,000 business people of modest means like the Maggios have obtained access to formal loans. Photo by Martín Thomas.

Back to article