Financiera Rural, Mexico's rural government agency, began operations in 2003 with one clear mission: contributing to the development of agricultural, livestock, forestry, fishery and all other economic activities in rural Mexico through a self-sustainable financial model.
Financiera Rural aims at increasing productivity and profitability in rural areas, thus improving the quality of life of their population.
To this end, Financiera Rural combines the use of two fundamental tools: loans and the provision of training, advisory and technical assistance services.
After five years of operation, Financiera Rural's results speak for themselves:
- Financiera Rural has granted more than 500 thousand rural loans, totaling over 7 billion USD.
- In 2007 Financiera Rural lent 17,038 millions of Mexican Pesos.
- In 2008 Financiera Rural lent 26,398 millions of Mexican Pesos.
- The loan portfolio's growth in 2007 alone reached 39%, compared to the previous year.
- The institution's non-performing loan ratio has been constantly kept at international standards. By year-end 2008, it reached 4.2%.
Financiera Rural is a first and second tier lending institution, which allows is to grant credit to individual rural producers and entrepreneurs, as well as rural enterprises, rural financial intermediaries and informal credit organizations, through 97 branches located throughout the country.
Financiera Rural has developed training, advisory and technical services programs, which enable it to prepare future clients in order for them to access credit and make a better use of it once they have received it. Training, advisory and technical services programs include: financial services seminars, advise on how to develop a business plan, how to organize a rural enterprise or how to improve production practices, technology transfer programs, etc.