**Table 2: Selected Micro and SME Loans Supported by** **_Apoyo Pyme_ Program (February 2006)**

||**Interest rate**|**Amoun**<br>**(MXP Th**<br>**Min**|**t of loan**<br> **ousand)**<br>**Max**|**Maximum**<br>**maturity**<br>**(months)**|**Collateral /**<br>**Guarantee**|**Minimum**<br>**borrower size***<br>**(MXP Thousand)**|**Borrower's**<br>**years of**<br>**operations**|**Financial**<br>**statements**<br>**required**|**Require**<br>**income tax**<br>**information****|
|---|---|---|---|---|---|---|---|---|---|
|HSBC|15% - 24%|10|1,500|18|Not required|42|1 - 2|For loans<br>above<br>MXP$400th|Required|
|BBVA|TIIE + 8.32|75|1,000|24|Personal|900|1|Last 2 years|Required|
|Santander|18%|50|1,000|36|Personal|1,000|3|Last 2 years|Required|
|Banamex|TIIE + 11.4|NA|550|Revolving|Personal|NA|2|Last 2 years|Required|
|Banorte|TIIE + 12|100|11,200|60|Mortgage or<br>personal|NA|2|Last 2 years|Required|
|Scotiabank|TIIE + 8.4|100|2,700|Revolving|Personal|NA|3|Last 2 years<br>(Audited)|Required|
|Bajio|TIIE + 6.5|200|999|36|Personal|700|3|Last 3 years|Required|
|Banregio|19%|30|400|Revolving|Personal|NA|6 months|Last 2 years|Required|
|Banco Azteca|70%|10|60|24|Mortgage or<br>personal|0|0|NA|Not required|
|Ficen|TIIE + 15|150|5,000|60|Mortgage or<br>personal|5,000|2|Last 2 years|Required|
|Unicrese|TIIE + 12|30|250|36|Personal|NA|3 months|1 year|Required|
|Credito Real|50%|5|75|24|Fixed assets|NA|2 years|NA|Required|

Source: Ministry of Economy.

Note: This table includes all commercial banks and a sample of non-bank financial institutions participating in the program.

* Minimum borrower size refers to the minimum level of annual sales that borrowers must demonstrate in order to be eligible for a loan.

** Refers to the requirement to provide proof of registration as taxpayer and/or income tax declarations.

# **_Households_**

Strong growth in lending to households in recent years has expanded accessibility of financing, albeit from a low level. As can be seen in the table below, Mexico fares relatively well compared to its regional peers in geographic but not demographic penetration of bank branches and ATMs. However, banking coverage varies widely across states and is mostly concentrated in large urban areas<sup>49</sup> . Although direct information on the increase in the number of consumer and mortgage borrowers was unavailable, there are several other indicators that suggest broader accessibility of financing over the last few years. These include the increase in the number of consumer records on file with the credit bureau (from 28.5 million in end-2000 to around 64 million as of April 2005)<sup>50</sup> , number of credit cards in circulation according to the CNBV (from 6.7 million in end-2000 to 21 million in end-2005) and number of new financed housing units according to the _Comisión Nacional de Fomento a la Vivienda_ (from 477 thousand in 2000 to around 678 thousand in 2005).

> 49 See, for example, CGAP (July 2005).

> 50 Since all banks are obliged to consult the credit bureau for new credit relationships, the growing coverage of the bureau can be considered as a proxy for increased accessibility, although the growth in the number of consumer records does not necessarily reflect the increased number of individual borrowers.

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