The Transparent Pricing Initiative in Colombia has published standardized pricing data from 25 microfinance providers, representing the majority of Colombia’s microloan borrowers. Launched in 2010 the Initiative is delivered in partnership with Microfinanzas para el Desarrollo and EMPRENDER-AsoMicrofinanzas and funded by the Ford Foundation.Microfinance in Colombia
The regulatory and supervisory framework of the Colombia microfinance industry is shaped around deposit taking and non-deposit taking microfinance service providers. The Financial Superintendence of Colombia (SFC) is the main regulatory body of deposit taking microfinance service providers. Cooperatives and saving and loans associations are overseen by the Economia Solidaria Superintendency. The majority of NGO MFIs do not fall under any regulatory body.
Usury laws and interest rate caps have existed in the Colombian financial sector since 1963. Article 39 of the Myims law, issued in 2000 and later amended in 2004 by the SFC,specifically deals with the fees and commissions charged by financial institutions. The SFC Resolution 1311, issued in 2010, instituted separate interest rate caps for ordinary, consumer and microcredit loan products. A legal framework on consumer protection for the financial sector was put in place in 2009. This law (1328) aims to promote the transparent supply of information by requiring adequate disclosures on all documentation and by creating an appropriate institutional mechanism for the protection of consumers. This legal framework does not cover the vast majority of unregulated NGO MFIS operating in Colombia.
The Price Graph for the Colombian microfinance market is divided into two segments: microloan and consumption products. The price caps applied are different preventing comparison across these market segments.
Prices calculated using the TEA (Tesa Effectiva anual) formula for the microcredit loan segment ranged from 11% to 43%. For consumption loans the range was 10% – 28% TEA. The effect of the interest cap on these two segments is noticeable. A key observation of the laws regarding microfinance prices in Colombian is the inclusion of fees and charges in the calculation and communication of prices.
|Institution||# Borrowers||Portfolio (US$)||Products||Transp. Index||Participating Since||Age of Data|
|Actuar Caldas||3,700||5,247,000||1||87||2011-Mar||94 mos.|
|Actuar Quindio||2,300||2,800,000||2||134||2011-Mar||94 mos.|
|Actuar Tolima||8,800||5,099,000||3||49||2011-Mar||94 mos.|
|Banco Agrario||56,300||39,938,000||3||61||2011-Mar||94 mos.|
|Banco WWB||219,400||294,019,000||5||82||2011-Aug||89 mos.|
|FMM Popayán||310,000||243,614,000||3||75||2011-Mar||94 mos.|
|Fund DeLaMujer||199,900||165,568,000||1||83||2011-Mar||94 mos.|
|Fund Oleoductos||500||435,000||1||45||2011-Aug||89 mos.|
|ProCredit CO||5,700||18,569,000||3||92||2011-Mar||94 mos.|