Lack of affordable housing is a pressing issue in Colombia. The large banks are focused mainly on the middle and high-income segments of the economy, leaving room for institutions such as La Hipotecaria to address the housing finance needs of underserved segments.
An inclusive approach to housing finance
La Hipotecaria has implemented a transparent and prudent application process to align housing loans with the financial capacities of its clients. This integral aspect of their business strategy is evident in their commitment to ensuring that the monthly payments are well-suited to clients' income levels. To make homeownership more accessible, La Hipotecaria is dedicated to offering affordable product pricing. In alignment with this commitment, the company actively leverages government subsidies that specifically target the most vulnerable segments of the population. By incorporating these subsidies into their offerings, La Hipotecaria aims to make a positive impact on the lives of individuals and families, fostering a more inclusive and sustainable approach to housing finance.
A comprehensive coverage
Furthermore, to enhance financial security for their clients, La Hipotecaria extends its services beyond housing loans. This comprehensive coverage includes life insurance, protection against natural disasters, and coverage for unforeseen unemployment. Moreover, recognising the importance of financial literacy, La Hipotecaria conducts educational workshops to empower clients with essential financial knowledge.
This facility marks Triodos IM’s second investment in the Latin America region dedicated to improving access to a key basic need: affordable housing. In 2021, Triodos Microfinance Fund provided a USD 10 million debt facility to La Hipotecaria in El Salvador.