The District Bank of Medellín has launched a credit program designed to provide financial resources with a very low interest rate of 0.91%. This initiative aims to support individuals from socio-economic strata 1 through 4, particularly for the development of small businesses and entrepreneurs within the city.
According to María Fernanda Galeano Rojo, the Secretary of Economic Development for Medellín, this strategy is intended to strengthen the community’s social capital and the city’s business network.
This program features four distinct lines of credit. The first focuses on the creation and consolidation of micro, small, and medium enterprises (MiPymes), allowing applicants to request amounts ranging from one legal minimum wage up to 25 minimum wages.
The second line, known as Neighborhood Networks, encourages the formation of Solidarity Circles. In this arrangement, groups of 5 to 30 people jointly manage credit and share responsibility for repayment. The amounts available under this line can range from $100,000 to three minimum wages.
Juan Carlos Montes, a vendor who has operated a stuffed arepas business in Parque de Boston for 13 years, highlighted the advantages of the Solidarity Circles. He explained, “One of the goals is to eliminate the high-interest loans that can be detrimental to merchants. They charge us at interest rates of 10%, 15%, or even 20%, unlike the 0.91% offered through the Circle.”
The third line called Bancuadra, aims to strengthen collaborative economies by providing low-interest consumer loans to support vulnerable citizens. The fourth line focuses on specific project funding, with resources coming from national, departmental, and city government entities, as well as non-governmental organizations at both national and international levels.
In addition to financial assistance, the District Bank offers training in business management and various business models. Loan repayment terms vary from three to 48 months, and borrowers can only have one active loan per business or MiPyme at any given time.
This program originated from Agreement 45 of 2001, initially branded as the ‘Bank of the Poor’, and was rebranded to its current name under Agreement 74 of 2023. To qualify for the support, applicants must meet several criteria, including:
– Being between 18 and 75 years old.
– Residing in socio-economic strata 1, 2, 3, or 4 in the municipalities or districts of Medellín.
– Presenting a co-signer who meets specific conditions, such as being an employee, independent worker, capital income earner, property owner, or having a vehicle affiliated with a transportation company.
– If the applicant owns property, a co-signer is not required.
– The business being established or strengthened must be located within the municipalities or districts of Medellín.
– Applicants reported for debts up to 2.5 minimum wages in real sector activities (commerce) are still eligible for the program.
– Being current with financial obligations; otherwise, proof of settled debts may be necessary.
Interested parties can reach out to 604 385 55 55, extensions 7353 and 5071, send an email to [email protected], or visit the District Bank at Carrera 52 # 44A – 03, first floor of the Vásquez building in Parque de las Luces.
Another advantage of the program is the group loans offered through Neighborhood Networks and Bancuadra, which aim to foster social connections. Neighborhood Networks consist of groups of 10 to 30 individuals living in the same area who wish to strengthen their businesses. They can request loans ranging from $100,000 to $2.6 million, with group members jointly responsible for repayment.
Bancuadra operates similarly, bringing together groups of 10 to 30 individuals living in close proximity who seek loans for personal use, also with amounts from $100,000 to $2.6 million and shared repayment responsibility.
Image and News Source: https://www.infobae.com/colombia/2024/07/23/asi-puede-acceder-a-una-tasa-de-interes-baja-para-negocios-en-el-banco-distrital-de-medellin/
