The reality for households living on bonos
Bolivia relies on targeted cash transfers rather than a minimum income. Renta Dignidad supports people aged 60 and over, Bono Juana Azurduy covers mothers and young children, Bono Juancito Pinto is paid once a year per pupil, and another bono supports severe disabilities.
Most of these transfers are small, temporary or annual. A bank will therefore not base a loan on them. Microfinance institutions think differently: they lend against the cash flow of a small business, a market stall or farm production, and treat bonos as a complement.
How the transfers work
The State pays these bonos through banks and payment points, with requirements such as health checks for Juana Azurduy or school enrolment for Juancito Pinto. Programmes and amounts may be reviewed by each government, so official announcements should be checked before relying on a payment.
These benefits are personal. Handing over an identity card or the documents used to collect them to a moneylender, even temporarily, exposes the household to losing the payment and to identity misuse. No legitimate institution asks for this as security.
The ASFI credit register and private bureaus
The Autoridad de Supervisión del Sistema Financiero (ASFI) runs the Central de Información Crediticia, where banks, IFDs and cooperatives report every loan and guarantee. Licensed private credit bureaus, such as Infocred, combine this data with other sources. Every lender checks them before approving.
Borrowers may request their own credit report from ASFI or from a private bureau with their identity card. Late payments, written-off loans and guarantees signed for relatives all appear. Errors should be claimed first at the lender, then before the ASFI consumer protection unit.
Interest rates and consumer protection
The Financial Services Law 393 of 2013 introduced maximum rates for productive credit and social housing loans, while consumer loans remain without a statutory ceiling. Every contract must show the effective annual rate. Usurious lending outside the system is punishable under the Penal Code.
Five practical routes beyond ordinary loans
Pawning jewellery, electrical appliances or tools is very common in Bolivian cities. According to ASFI, casas de préstamo y empeño are not financial intermediaries under its supervision; their registration and control fall to the Autoridad de Fiscalización de Empresas, the business regulator.
The loan equals a share of the appraised value and the object returns once capital and interest are paid. Before pawning anything, ask for a written receipt describing the item, the rate, the deadline and what happens if payment is late.
Microcredit and productive credit
Bolivia is a global reference for microfinance. IFDs such as Crecer, Pro Mujer and Diaconía, together with BancoSol and Banco FIE, lend to small vendors and producers, often through village banking groups whose members guarantee one another instead of pledging property.
The Banco de Desarrollo Productivo, a state development bank, finances productive activities on preferential terms, and Law 393 sets maximum rates for productive credit granted by regulated entities. A family receiving bonos can use these channels when it runs a genuine small activity.
Opening a stall, workshop or farm activity remains the most common path out of hardship in Bolivia, yet competition in informal trade is intense. Testing sales for a few weeks before borrowing and keeping the first loan small limit the risk of over-indebtedness.
Pasanaku and participatory finance
The pasanaku, a rotating savings group in which each member contributes and collects the pot in turn, is a traditional, interest-free alternative. It works only among trusted people; online lending crowdfunding has no specific framework, so platforms promising loans deserve suspicion.
Church and charitable assistance
Cáritas Bolivia, parish social pastoral teams, the Bolivian Red Cross and municipal programmes help with food, medicine and emergencies. Older people receiving Renta Dignidad can also turn to their municipality's social services before going anywhere near a moneylender.
Feasible alternatives compared
The table summarises options that genuinely exist in Bolivia for households on low income and social transfers. Conditions differ by institution and region; amounts are not shown because they vary widely. The common point is a licensed lender supervised by ASFI and a written contract.
| Option | Who it suits | Typical conditions | Pros and cons |
|---|---|---|---|
| Village banking (banca comunal) | Women with a small trade or home activity | Group of members, mutual guarantee, regular meetings | No collateral; group pressure, frequent instalments |
| Individual microcredit at an IFD or BancoSol | Owners of a stall, workshop or farm | Visit of the activity, cash-flow analysis | Builds history; rates higher than standard bank loans |
| Savings and credit cooperative | Members able to save each month | Membership, savings, sometimes a guarantor | Lower cost for members; slower access |
| Guarantor-backed loan | Households with an employed relative | Lender analyses guarantor income | Easier approval; guarantor fully liable |
| Family loan with signed document | Anyone with a willing relative | Written note, amount and dates | No interest or low; risk to relationships |
Village banking, IFDs and cooperatives
Development financial institutions such as Crecer and Pro Mujer pioneered village banking: groups of women guarantee each other's loans, meet regularly and often receive financial education. This model suits mothers receiving Juana Azurduy who run a small sales activity but own no collateral.
Savings and credit cooperatives licensed by ASFI lend to members, often at lower cost than other lenders. Older people receiving Renta Dignidad who keep a small business may also be considered by some microfinance lenders, provided the activity, not the transfer alone, supports repayment.
A realistic action plan
- Note all income sources, including bonos, sales and remittances, against monthly expenses and debts.
- Request your credit report from ASFI or a licensed bureau and check every line.
- Visit two licensed microfinance institutions or a cooperative near you and ask for a written simulation.
- Compare the effective annual rate and the total amount to repay, not only the instalment.
- If a relative acts as guarantor, explain clearly that they will owe the full debt in case of default.
- Keep all receipts and the contract; report problems to the lender's complaint point first.
- If repayments become difficult, ask for rescheduling before turning to another lender.
Red flags to avoid
- "Gota a gota" lenders offering fast cash without papers and collecting daily, often with intimidation.
- Online "private lenders" asking for a guarantee or processing fee before releasing a loan.
- Requests to leave an identity card, bank card or bono collection documents as security.
- Offers to "clean" a record at the Central de Información Crediticia for a fee.
- Lenders without an ASFI licence or without a written contract stating the rate.
Where to complain
Every supervised institution must have a complaint point. If unsatisfied, the borrower can file a complaint with ASFI's consumer protection unit. Threats and violent debt collection by informal lenders should be reported to the police, which has acted against gota a gota networks.
Frequently asked questions
These questions are those most often raised by households living on bonos and informal earnings. They cover whether transfers count as income, what microfinance expects, how to check a credit record and how to recognise an illegal lender.
Does Renta Dignidad count as income for a loan?
Some lenders may consider it as a complement, but rarely as the sole basis of repayment. A small business or regular family support usually needs to exist. The safest approach is to ask the institution how it assesses older applicants before signing anything.
Can I get a loan without collateral?
Yes, village banking and solidarity group loans are designed for people without property. Members guarantee each other instead. This requires attending meetings and paying on time, because a missed payment affects the whole group and its future loans.
How can I check whether a lender is legal?
Licensed banks, IFDs and cooperatives appear in ASFI's registers. A lender that operates only via social media, refuses to give a written contract or demands a fee before disbursement should be treated as a likely scam.
What if I already owe money to a gota a gota lender?
Keep records of every payment, avoid borrowing elsewhere to pay them and report threats to the police. A licensed microfinance institution or cooperative may help consolidate legitimate debts, but it will not refinance an illegal loan as such.
Useful organisations and resources
- Pro Mujer Bolivia – reach among vulnerable women (FinDev) — Report on Pro Mujer, which has served around 664,000 vulnerable Bolivian women with microcredit, health and training services.
- ASFI – operating licence for Fundación Pro Mujer IFD (2025) — Regulator's notice confirming Pro Mujer is a licensed development finance institution, so borrowers know it is supervised by ASFI.
- BancoSol – annual report 2015 — Annual report of BancoSol, the Bolivian microfinance bank lending small amounts to low-income workers and informal traders.
Official and legal references
- World Bank Doing Business – Finance for all in Bolivia (2009) — Case study on how Bolivia built its credit information system and expanded microfinance.
- CAF – Microfinance as a mainstay of financial inclusion in Bolivia — Development bank analysis of the Bolivian microfinance sector and its reach among low-income households.