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Partner Description:

Lumni is a lending organization in Chile that helps students from low-income families pay their tuition through future income contracts. Founded in 2003, the organization is a pioneer in the field of human capital financing in Chile, and now also operates in Colombia, Mexico, Peru, and the United States. To date, it has financed nearly 2,000 students to pursue higher education -- nearly all from low-income backgrounds.

In Chile, only 40% of the eligible student population is able to access higher education -- compared to 80% in developed countries. One of the main barriers to education is the limited access to financing, either due to the cost of borrowing or requirements like collateral and guarantors. While government subsidies exist, they are reserved for certain segments of the population, and many students are left out. Kiva lenders’ funds help the organization support even more students from low-income backgrounds to pursue higher education in Chile.

A unique lending approach:

Many students in Chile are in need of financing, sometimes unexpectedly. For example, the death of a family’s income earner can jeopardize tuition payments. Sometimes school fees are higher than anticipated. Not all of these students can access regular loans. In these circumstances, Lumni enables students to continue their studies without burdensome debt payments or putting up collateral, but rather by pledging a percentage of their future income. The loan, in the form of tuition payments, is made by Lumni directly to the university, so there is no risk of a student losing or misusing funds.

User-added image

Whenever a student borrower is not employed (while studying, looking for work, or unemployed), only a monthly “repayment culture” payment of around US$10 is due. Once the borrower starts to work, Lumni calculates repayments as a percentage of their income, making it easier to pay back the loan.

While Lumni does not charge a formal interest rate, it charges a percentage of income for the length of the loan. This percentage is determined by statistical analysis and is adjusted based on country, employability, periods of unemployment and loan size. This rate for student loans at Lumni does not exceed 15%.

Image courtesy of Lumni.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 29, 2013 Oct 12, 2005
Total Loans $16,925 $994,173,925
Amount of raised Inactive loans $0 $246,850
Number of raised Inactive loans 0 286
Amount of Paying Back Loans $0 $153,984,725
Number of Paying Back Loans 0 196,046
Amount of Ended Loans $16,925 $839,942,350
Number of Ended Loans 3 1,055,629
Delinquency Rate 0.00% 8.66%
Amount in Arrears $0 $8,865,405
Outstanding Portfolio $0 $102,333,532
Number of Loans Delinquent 0 30,827
Default Rate 39.25% (See Note) 1.42%
Amount of Ended Loans Defaulted $6,644 $11,900,367
Number of Ended Loans Defaulted 2 34,261
Currency Exchange Loss Rate 10.74% 0.45%
Amount of Currency Exchange Loss $1,818 $4,517,245
Refund Rate 0.00% 0.60%
Amount of Refunded Loans $0 $5,985,075
Number of Refunded Loans 0 6,003

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 0.00% 75.51%
Average Loan Size $5,642 $398
Average Individual Loan Size $5,642 $627
Average Group Loan Size $0 $1,756
Average number of borrowers per group 0 7.7
Average GDP per capita (PPP) in local country $19,100 $5,871
Average Loan Size / GDP per capita (PPP) 29.54% 6.78%
Average Time to Fund a Loan 3.68 days 6.92 days
Average Dollars Raised Per Day Per Loan $1,533.75 $57.53
  Average Loan Term 47 months 11.13 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3 519,327
  Journaling Rate 100.00% 41.10%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.14

Borrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower N/A 18.00% PY 26.33% PY
  Profitability (return on assets) N/A -1.8% -1.14%
  Average Loan Size (% of per capita income) N/A 8.00% 16.31%

Country Fast Facts

Field Partner Staff

Consuelo Cid
Melissa Gutierrez
Nicole Perez