$20 million will support Brilla program developed by Promigas S.A.
With a loan of $20 million from the Inter-American Development Bank (IDB), up to 1.4 million families will benefit from expanded access to credit for the purchase of household appliances, school supplies and financing for technical education in Colombia.
The objective of the program is to scale up the non-bank financing program Brilla, developed by PROMIGAS, S.A., which provides an unconventional, innovative platform based on the company's network of gas consumers to increase access to financial services. Through the program, natural gas consumers with good payment histories can access financing for a variety of goods and services that will improve the quality of life for their families.
The loan targets low-income residents of the Atlantic and Pacific regions of Colombia living on between $4 and $10 per day. Known as the base of the pyramid, this segment of the population is noted not only for financial exclusion, but also for lower levels of education, a high degree of informality in the workplace and substantially higher rates of interest when able to access credit.
A key challenge in the Colombian finance sector is not just banking greater numbers of the overall population, but also creating long-term relationships with clients so as to promote their continued presence in the financial system and timely access to suitable financial products.
About Opportunities for the Majority
The IDB’s Opportunities for the Majority initiative promotes and finances market-based, sustainable business models that bring together companies, local governments, and communities in developing and supplying quality products and services to people at the base of the socio-economic pyramid in Latin America and the Caribbean.