Peru to expand rural credit via Unica community unions

Peru's Minister of Agrarian Development and Irrigation, Marco Antonio Vinelli Ruiz, has outlined four strategic pillars to support small-scale farmers: access to water, market-related technical assistance, innovation and mechanization, and improved access to financing.

To address financing, the government intends to utilize Agrobanco and the Fondo Agroperú, while also integrating 'Unica' (Credit and Savings Unions). These Unica are community-based financial organizations rooted in trust and collective resource management. They allow rural neighbors to pool funds to facilitate loans for members, a model already functioning in regions such as Cajamarca, Ayacucho, and Puno.

This initiative comes as rural poverty in Peru remains significant. In 2025, monetary poverty was reported at 35.5% in rural areas, compared to 23.4% in urban sectors.