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Transparent Pricing In Ecuador

Please note that MFTransparency is no longer collecting new pricing data. The data displayed for this country is for historical purposes only and does not represent current products or prices in the country. Note that the age of the information for each MFI is indicated in the table below.

The Transparent Pricing Initiative in Ecuador has published standardized pricing data from 26 microfinance providers, representing over three quarters of Ecuador’s active microfinance borrowers. Launched in 2010 the Initiative is delivered in partnership with the Red Financial Rural (RFR) and is funded by the Ford Foundation.

Microfinance in Ecuador

Ecuador has one of the fastest growing microfinance sectors in the Latin American region. Following the government’s recent determined effort to reform the existing supervisory framework and provide access to funding for microfinance institutions, the future outlook of the sector looks positive. The leading providers of microfinance are downscaling commercial banks, regulated loans and saving cooperatives, registered cooperatives and non-government organizations. The gap in market penetration between urban and rural areas are relatively high, represents a significant untapped demand for financial services.

Truth-in-Lending Legislation

Since 2002, microfinance institutions have been incorporated under the regulatory and supervisory framework of the Superintendia de Bancos (SBS) of Ecuador. Laws on consumer protection and transparency in the financial system were introduced in 2004. This law is also applicable on registered NGO-MFIs. The law requires all public financial institutions to disclose their procedures adequately and maintain transparency about the interest rate and fees charged. Interest rates are one of the areas that are highly regulated in the microfinance sector. The Superintendcia de Bancos has instituted a national price formula- TEA (Tasa Efectiva Anual) which mirrors the international Effective Interest Rate formula with the exception that it does not include insurance charges.

Ecuador Price Graph

The Price Graph showing Ecuador’s microfinance pricing was constructed using two formulas – the standardized national formula (Tasa Efectiva Anual) and the Effective Interest Rate (EIR) including security deposit. Microloan prices in Ecuador range from 10% to 40% TEA.

Minimal variations in microloan pricing are seen across institution type, geographic location and product purpose.  Nearly 100% of the institutions analysed use the declining balance interest rate calculation method. The use of fees and other charges were reported among many of the participating institutions.

Ecuador Institutions

Institution# BorrowersPortfolio (US$)ProductsTransp. IndexParticipating SinceAge of Data
Banco Solidario79,700221,716,0001662010-Nov96 mos.
CEPESIU2,000939,00041022010-Nov96 mos.
COAC 4 Octubre2,2005,771,0002N/A2010-Nov96 mos.
COAC Ambato1,30016,415,0002822010-Nov96 mos.
COAC FondVida2,5004,200,0004692010-Nov96 mos.
COAC LaBenefica2,5008,482,0006912010-Nov96 mos.
COAC MCCH5,30010,020,0002952010-Nov96 mos.
COAC Nacional30,70027,129,0002852010-Nov96 mos.
COAC San José10,40029,133,0005912010-Nov96 mos.
COAC SanAntonio1,0002,384,0003672010-Nov96 mos.
COAC SantaAnita2,0002,532,0006692010-Nov96 mos.
Codesarrollo14,40040,328,0007812010-Nov96 mos.
Coop San Miguel1,8004,754,0005842011-Feb93 mos.
CooP VPR7001,052,0004752010-Nov96 mos.
Cooprogreso7,90032,244,0004872010-Nov96 mos.
Credi Fe100,900380,039,0004922010-Nov96 mos.
D^Miro36,90027,692,0009602011-Jun89 mos.
DECOF2,200705,0002712010-Nov96 mos.
Espoir62,10021,036,0005772010-Nov96 mos.
FODEMI28,20012,924,0003792010-Nov96 mos.
Fundacion Alternativa4,3005,545,0002612010-Nov96 mos.
FUNDAMIC2,0001,468,0002502010-Nov96 mos.
INSOTEC7,0006,047,0004792010-Nov96 mos.
Luz del Valle6,40011,300,0003842010-Nov96 mos.
ProCredit43,800211,941,0002N/A2010-Nov96 mos.
PS Ambato5,6002,771,0001822010-Nov96 mos.
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Key Statistics
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# Products
# Institutions
# Countries
# Borrowers
Loan Portfolio (USD)
% Products using declining balance
% Products with one or more fee
% Products with one or more insurances
% Products with compulsory deposits
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Country InstAbbrev SampleCode Loan Amount USD Loan Term (Months) SampClients FullAPR DateApproved
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