EDYFICAR (or the company) is a microfinance institution that provides basic credit services to low-income populations in Peru. It serves approximately 32,000 clients, of whom approximately 50% are women, 25% live in rural and semi-rural areas, and about 30% live below the country’s poverty line. Its main product lines are working capital loans, business improvement loans, and a relatively modest portfolio of housing loans. EDYFICAR, which is constituted as a private stock company, obtained a limited banking licenses in 1998 from the Peruvian Superintendency of Banking and Insurance. It operates 18 branches in various regions of Peru. The purpose of IFC’s financing is to support the continued expansion of EDYFICAR’s loan program to low-income microentrepreneurs throughout Peru. In addition to allowing an expansion of EDYFICAR’s loan program, IFC’s financing will enable the institution to diversify its funding sources and provide a greater range of medium-term loan products, something greatly demanded among the clients served by EDYFICAR.