Relationship between microcredit granting and profitability in savings and credit cooperatives

Abstract

Microcredit, understood as support for the economic and financial growth of vulnerable people and small enterprises, facilitates access to financing where traditional banking does not reach, promoting financial inclusion, particularly for women. This study analyzes its impact on the profitability of segment 2 savings and credit cooperatives in Ambato, Ecuador, which face management problems, low demand and financial risks. The objective was to determine the relationship between microcredit and profitability through financial indicators such as return on assets, interest margin and delinquency, under financial prudence criteria for savings and credit cooperatives. A correlational and cross-sectional methodology was employed, using Pearson's correlation coefficient to evaluate the influence of microcredit on financial results. The findings indicate that single-accrual microloans are dominant, constituting the largest source of income, with low levels of delinquency due to prudent management and periodic evaluations. It is concluded that the balance between financial efficiency and social impact is key to the sustainability of the sector.