The Bono de Desarrollo Humano and credit
The Bono de Desarrollo Humano (BDH) is a monthly cash transfer managed by the Ministry of Economic and Social Inclusion (MIES) for households in poverty identified through the Registro Social. A variable component adds support for families with children, so amounts differ between households.
For borrowing, the key point is that the bono is both an income and an eligibility status. That status opens access to the Crédito de Desarrollo Humano (CDH), a scheme designed specifically for recipients and very different from a commercial personal loan.
How the Crédito de Desarrollo Humano works
The CDH is an advance of future bono payments, granted through BanEcuador, to finance a small income-generating activity such as raising animals, selling food or buying tools. Instead of paying monthly instalments in cash, the recipient stops receiving the bono until the advance is covered.
Individual and associative modalities
An individual CDH advances roughly one year of payments. The associative modality, for recipients who organise a joint project, covers a longer period; the press has cited amounts of up to USD 1,320. Exact amounts, terms and costs should be confirmed with BanEcuador or MIES before applying.
Because repayment takes the form of a paused bono, the household must be able to live without that income for the whole period. A CDH used for daily consumption rather than an activity that earns money can leave a family worse off for months.
Who the CDH suits
It suits recipients with a concrete, modest project and enough other income to cover food and basic bills while the bono is withheld. It suits poorly anyone facing an emergency expense, where MIES social workers or community support may be a better first contact.
Cooperatives and microfinance lenders
Outside the CDH, Ecuador relies heavily on savings and credit cooperatives supervised by the Superintendencia de Economía Popular y Solidaria (SEPS), and on microfinance banks and foundations. Several of these institutions work with women and rural households that have no salary.
| Option | Best for | Usual requirements | Cost signal |
|---|---|---|---|
| Crédito de Desarrollo Humano (BanEcuador) | Small productive project | Active BDH status, ID card, project idea | Repaid by withholding the bono |
| Savings and credit cooperative (for example Jardín Azuayo) | Members with a savings record | Membership, ID, proof of activity | Microcredit rate within the legal maximum |
| Microfinance bank (Banco Solidario) | Working capital for micro-entrepreneurs | ID, business visit, references | Microcredit segment rate |
| NGO communal banking (Fundación Espoir) | Women in solidarity groups | Group membership, regular meetings | Small, short loans with group guarantee |
Savings and credit cooperatives
Cooperatives such as Jardín Azuayo, active in southern Ecuador, combine savings accounts with microcredit and often require a period of membership before lending. A few months of regular deposits, even small, show discipline and can count more than the bono itself.
Microfinance banks and foundations
Banco Solidario has long lent to micro-entrepreneurs, and international investors have funded its programmes for women. Fundación Espoir works with communal banks, where groups of women guarantee each other. Both assess the activity and household budget rather than a payslip.
Does the bono count as income?
Lenders usually record the bono as part of household income but rarely size a loan on it alone, since eligibility is reviewed and amounts vary. Being transparent about all income and existing debts helps the analyst set an instalment the household can actually sustain.
Costs, rate caps and the credit record
Ecuador sets maximum interest rates by credit segment, published by the Banco Central del Ecuador under rules of the financial policy board. Microcredit segments carry higher ceilings than consumer loans. Always ask for the effective annual rate and the total repayable in dollars.
Charging interest above legal limits outside the financial system is usury, a criminal offence under the Código Orgánico Integral Penal. That is the legal ground for reporting chulqueros, the informal lenders who still operate in many neighbourhoods and markets.
Checking your credit history
Banks and cooperatives consult the credit registry of the Superintendencia de Bancos and licensed credit bureaus. Many BDH recipients have little or no history, which is not the same as a bad record. A small loan repaid on time is the most reliable way to build one.
A safe sequence for applying
The following order keeps the decision realistic and leaves room to compare.
- Confirm with MIES that your bono status is active and ask whether you qualify for a CDH.
- Write a simple plan: what the project costs, what it earns per week and how long it takes to start earning.
- Calculate how the household will cover basic costs while the bono is withheld.
- Compare the CDH with at least one SEPS-supervised cooperative or microfinance lender.
- Request the effective annual rate, fees and payment schedule in writing.
- Check your record with the credit registry and correct any error.
- Sign only once you understand each cost and keep copies of all documents.
Red flags and common mistakes
Fraud targeting bono recipients is widespread, often using the names of MIES or BanEcuador. These warning signs apply specifically to this group.
- Calls or messages offering to speed up a CDH in exchange for a payment: the scheme does not use paid intermediaries.
- Lenders asking for a transfer or deposit before releasing a loan, presented as insurance or processing.
- Chulqueros offering same-day cash with daily collection and threats.
- Giving your ID card or bono collection details to a third party.
- Using a CDH for consumption, then facing months without the bono.
Can I take a CDH and a cooperative loan at the same time?
It may be possible, but it is risky. While the bono is withheld, the cooperative instalment must come entirely from other income. Lenders will see both debts in the registry, and combining them often leads to arrears. Finish one before starting another where possible.
Do I keep my bono status after receiving a CDH?
The CDH is linked to your status as a recipient, and once the advance is covered, payments are expected to resume if you remain eligible. Eligibility depends on the Registro Social and MIES rules, so confirm your situation directly with official offices.
What should I do if a chulquero threatens me?
Stop paying in cash without receipts, keep evidence of messages and calls, and report the case to the Fiscalía or the police. Usury and extortion are crimes. Community organisations and the Defensoría del Pueblo can guide victims through the process.
Where can I complain about a cooperative or bank?
Complain first to the institution itself. If unresolved, cooperatives fall under the SEPS, while banks, including BanEcuador, fall under the Superintendencia de Bancos. Keep copies of your contract, payment receipts and any written exchange to support the complaint.
Useful organisations and resources
- BanEcuador – Crédito de Desarrollo Humano — Public bank that grants the CDH to bono recipients (press guide).
- Cooperativa de Ahorro y Crédito Jardín Azuayo — Large savings and credit cooperative offering microcredit (investor profile).
- Banco Solidario — Microfinance bank lending to micro-entrepreneurs (investor profile).
- Fundación Espoir — NGO running communal banking for women (FinDev Gateway presentation).
Official and legal references
- How to apply for the Crédito de Desarrollo Humano (Expreso) — Step-by-step press guide to the CDH application.
- BDH recipients and the CDH of up to USD 1,320 (Expreso) — Press report on amounts available under the associative CDH.
- Bono de Desarrollo Humano payment dates (El Universo) — Press summary of when and how the bono is paid.