FINCA

About FINCA

FINCA International is a global not-for-profit organisation committed to creating pathways out of poverty through sustainable, scalable solutions rooted in the needs of the people it serves. Operating in some of the world’s most challenging markets, FINCA provides financial and non-financial tools that help individuals and communities build resilience, generate income, and invest in their children’s education.

FINCA Impact Finance provides low-income entrepreneurs, smallholder farmers and families on the margin with the financial tools they need to build a brighter future. FINCA works in 13 countries, including Uganda.

What is FINCA's mission?

FINCA works towards ending poverty through sustainable and scalable solutions inspired by the insights and needs of people in the communities where they live and work. 

What types of financial services does FINCA provide?

In Uganda, FINCA offers loans, savings accounts and other financial services including mobile and internet banking, money transfers, foreign exchange and insurance services. 

What is the cost of borrowing from FINCA?

Microfinance institutions (MFIs) charge higher rates of interest for several reasons. Firstly, the administrative costs of making many small and high-risk loans are much higher than making fewer larger and collateralised loans; secondly, they take more time assessing the feasibility of applications and thereby reducing risk because borrowers cannot offer traditional forms of collateral nor do they have salaried incomes; thirdly, MFIs often operate in geographically remote areas with low population densities and this means that they incur greater operational costs; and fourthly they often accompany loans with a range of training and technical advice.  

The Annual Percentage Rate (APR)* of loans provided by FINCA in Uganda range between 44% and 74%. Based on active borrowers the average APR is 49%. 

*The Annual Percentage Rate (APR) is a standard way of expressing the cost of a loan that allows for comparison between loans. It includes annual interest, insurance, and fees that the borrower must pay, and is expressed as a percentage of the amount borrowed. 

Does FINCA provide any training?

In Uganda, FINCA offers free financial and technical education on topics as diverse as basic budgeting, financial planning, agricultural development, and entrepreneurship. These financial education offerings are particularly empowering for women and other groups who historically have lacked equal access to such resources. 

Where can I find out more information about FINCA?

Further information about FINCA is available from the organisation's website here.

*PAR30 is a commonly used metric that provides an insight into the quality of an MFI's loan portfolio, which is generally its major asset and therefore its greatest source of risk. It is computed by dividing the amount of delinquent loans greater than 30 days over the total amount of the loan portfolio.

Sources: *World Bank **United Nations Development Programme ***World Health Organization ****World Population Review