Infonavit credit scoring alliance adds new bank partner

Wednesday, March 16, 2005

Mexican niche bank Banco Mifel this week became the third financial institution to sign a small business credit scoring alliance with government mortgage bank Infonavit, local press reported.

Under the program, small businesses that employ fewer than 25 people with a history of 20 consecutive monthly payments of employer housing contributions to Infonavit are eligible for a credit line from participating financial institutions.

Infonavit has a database of 800,000 SMEs that it is prepared to share with banks in order to facilitate credit to the sector, Infonavit CEO Victor Borras said last October.

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Small businesses have traditionally found it difficult to take out bank loans because they frequently lack financial statements, operate in the informal sector, or are unable to offer assets as collateral.

Mexico's third largest bank Santander Serfin was the first bank to sign up for the program in October, followed by finance company Ficen earlier this month.

Santander has pledged 1bn pesos (US$87mn) in financing for small businesses participating in the program.