Insotec

Mission: To provide loans and training to rural poor via a holistic microfinance approach.

Specialty:  Rural, agricultural lending.

Organization Profile: INSOTEC, the Institute of Social, Economic and Technological Research, is a non-profit, non-governmental organization (NGO) founded on January 18, 1980.  INSOTEC began as an institute of applied research and training on microenterprise development and promoted the development of micro- and small entrepreneurs in Ecuador. 

In 1989, with the support of the Inter-American Foundation (IAF), INSOTEC’s launched a lending program to provide micro-credit services in Ambato, Riobamba and Latacunga. 

Beginning in 1991, INSOTEC underwent an overarching institutional transformation and began operating as a more holistic organization, offering credit along with training and technical assistance to other non-governmental organizations. In 1993, with support from the Inter-American Development Bank (IADB) and the Ecuadorian-Canadian Development Fund, INSOTEC improved and expanded upon its holistic microfinance approach and eventually started lending to borrowers directly, instead of other organizations.

Currently, INSOTEC has branches in Quito, Ambato, Riobamba, Pelileo and Santo Domingo de los Colorados, all of which are located in the Andes, save Santo Domingo de los Colorados.  INSOTEC plans to expand its microfinance operations to rural areas in the northwest, coastal region of Ecuador.

Since 2008, INSOTEC has decided to focus primarily on lending in rural areas leading to an increasing number of loans being used for agriculture and livestock instead of commerce.   INSOTEC also offers its members a $1,000 life insurance policy to protect the loan balance in case of death and disability and provides services in entrepreneurial development that boost the technical, financial and managerial capacities of the borrowers themselves.

WCCN Partner Since: 2010

Borrowers: INSOTEC provides loans for 5,425 individuals.  Of these clients, 45% are women and 55% are men (as of 2009).

Lending Portfolio: INSOTEC has an average loan size of $766 with a total lending portfolio of $4,554,449.  Commerce, small enterprise and industry consist of 36% of this portfolio, agriculture and livestock 49%, services 15%, and other 1% (as of 2009).