MICROCAPITAL STORY: Acceder and Acceder.com Provide No-interest Microfinance Loans in Argentina

Acceder.com is a non-profit internet-based microfinance charity with the mission, “to accomplish (their) dream of equal opportunity” by providing interest-free loans in Jewish communities. It is run by the New York based ACCEDER Foundation. Loans currently only benefit borrowers in Argentina. Users can scroll through a list of potential borrower’s profiles and decide whom they would like support with a minimum contribution of USD 25. The money is then funneled through Acceder.com to Acceder loan officers in Argentina who are in charge of screening clients, distributing loans and collecting repayments. Although the website does not provide information on standard loan sizes, posted loan sizes range from USD 1700 to USD 2700. The loans finance purposes such as small businesses, trips to Israel, housing improvement, and debt consolidation.

Acceder.com states that online microfinance brokerage Kiva, inspired it to begin a “peer-to-peer” lending service. Neither of the two are actually peer-to-peer lending platforms, because the models do not facilitate direct loans from the user to the borrower. Instead, the money is channeled into a pool that an intermediary uses to fund loans. The profiles posted are individuals who will receive a loan from the intermediary.

In addition, there are a few fundamental differences between the Kiva model and the Acceder.com model. First, whereas Kiva facilitates actual loans to microfinance institutions (MFIs), the funds that Acceder.com facilitates are actually donations. As such, they are tax deductible. Once the principal is repaid, the user may re-loan their “virtual funds”, but they may not withdraw their money.

Second, Kiva facilitates loans to partner MFIs, who in turn loan 100 percent of the amount to poor individuals or groups wanting to start a business. The MFIs collect installment payments and charge an interest on the loan. The MFIs repay the principal to Kiva, and use the interest to cover their overhead expenses. Kiva credits the total principal back to the user, who may opt to re-loan or withdraw the funds. Kiva’s overhead is paid for by donations.

Acceder.com, on the other hand, does not facilitate loans to partner MFIs. Instead, it distributes the funds to Acceder loan officers in Argentina who finance the borrowers, so the loan officers are a part of the same entity.

Third, Acceder charges no interest on its loans. The entire overhead is paid for by individual donors, corporate sponsors and foundations, the names of which are not specified on the website. The interest-free loans of Acceder bring to question the impact they have on the sustainability of the Argentinean microfinance industry.

Eduardo Elsztain and current CEO Elias Kier Joffe founded Acceder Argentina after the Argentinean Financial Crisis in 2001. It was the first non-English and non-Hebrew speaking organization belonging to the International Association of Hebrew Free Loans, a network of organizations that provide interest-free loans for emergencies, business start-ups, and education. Acceder Argentina was founded by Mr. Eduardo Elsztain and current CEO Elias Kier Joffe. In order to expand operations, ACCEDER was registered as a New York based Foundation in 2008 and Acceder.com was implemented to increase capital. The organization is currently working with local Jewish communities in hopes to expand operations to the rest of Latin America and the Former Soviet Union. The website reports that in 2008 Acceder Argentina had distributed over 200 loans worth just under USD 500 thousand. Acceder does not make any financial information publicly available, either on the American foundation end or on the Argentinean-lending end.

By Ryan Hogarth, Research Assistant

Additional Resources:

ACCEDER: Home

Acceder.com: Home

International Association of Hebrew Free Loans: Home