September 11, 2011
As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.
During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 
The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise MCDT SACCO's risk rating from 4 to 2 stars. The analysts have found that MCDT SACCO's risk variables, reviewed in the new risk rating model, were most representative of a 2-Star rating.
We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here:
MCDT SACCO has been informed of our analysts’ findings and their corresponding change in rating.
Original Partner Description

MICRO CREDIT FOR DEVELOPMENT AND TRANSFORMATION SACCO (MCDT SACCO) was registered on the 29th January 2008. The institution was formerly known as Micro Credit Development Trust (MCDT) an indigenous development Non-Governmental Organization (NGO) founded in 1996 by a group of 19 professional Ugandans and SAVE THE CHILDREN, NORWAY (formerly REDD BARNA) under the inspiration of the Bangladesh Grameen Bank Model. The aim was to create an institution that would make positive changes to poor people’s lives through credit, delivered using the solidarity groups lending methodology and to facilitate savings mobilisation from her members. The Founder Member’s original plan was to start a financial institution that would eventually be owned by the beneficiaries.

The mission of MCDT SACCO is to provide financial services on a sustainable basis to the lower strata of the poor, especially women, for their economic and social development. The goal is to provide savings and credit related financial services to improve standards of living in the Member households. The primary objectives are to:
(i) improve income of member’s households;
(ii) improve voluntary savings among the beneficiaries;
(iii) have increased tangible assets by members in their households; and
(iv) increase members’ ability to make informed decisions about their lives.
MCDT SACCO clients are the poor people in the urban, peri-urban and rural areas in which MCDT SACCO operates. The client must be aged between 18 and 68. The MFI operates deep in rural areas of Masaka and Tororo districts. There is one peri-urban branch of Luwero and an urban branch of Kampala operating in 4 of the five divisions where clients mainly live in slum dwellings. Currently, 100% of the clientele is women.

Financial Services Delivery
MCDT SACCO adopts the Grameen Bank approach of credit delivery via the solidarity groups lending methodology. Members in a group of 5 co-guarantee each other as security for MCDT SACCO loans.

Specific Activities
Presently, MCDT SACCO is offering two major loan products namely a general loan and a school fees loan. There is compulsory savings collection tied to the general loan. Pre-disbursement training covering basic literacy skills like name writing and awareness of MCDT SACCO policies and procedures, is offered as a prerequisite to access credit.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 20, 2008 Oct 12, 2005
Total Loans $1,843,725 $576,348,175
Amount of raised Inactive loans $0 $223,100
Number of raised Inactive loans 0 244
Amount of Paying Back Loans $144,275 $120,282,525
Number of Paying Back Loans 411 126,748
Amount of Ended Loans $1,699,450 $455,842,550
Number of Ended Loans 4,452 580,754
Delinquency Rate 0.98% 3.31%
Amount in Arrears $847 $2,628,327
Outstanding Portfolio $86,751 $79,478,788
Number of loanDelinquent 11 11,186
Default Rate 0.00% 1.09%
Amount of Ended Loans Defaulted $0 $4,987,519
Amount of Ended Loans $1,699,450 $455,842,550
Number of Ended Loans Defaulted 0 15,361
Currency Exchange Loss Rate 0.00% 0.07%
Amount of Currency Exchange Loss $58 $406,266
Refund Rate 0.97% 0.78%
Amount of Refunded Loans $17,800 $4,479,350
Number of Refunded Loans 38 5,008

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 99.98% 74.22%
Average Loan Size $292 $418
Average Individual Loan Size $324 $656
Average Group Loan Size $926 $1,825
Average number of borrowers per group 4.3 8
Average GDP per capita (PPP) in local country $1,500 $3,439
Average Loan Size / GDP per capita (PPP) 19.44% 12.17%
Average Time to Fund a Loan 1.13 days 5.52 days
Average Dollars Raised Per Day Per Loan $257.85 $75.87
  Average Loan Term 4.62 months 10.25 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 274 287,934
  Journaling Rate 5.11% 42.60%
  Average Number of Comments Per Journal 0.11 0.08
  Average Number of Recommendations Per Journal 7.77 1.92

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Portfolio Yield 77.00% 57.00% 33.65%
  Profitability (return on assets) 2.4% 4.5% -1.40%
  Average Loan Size (% of per capita income) 25.50% 61.00% 41.35%

Country Fast Facts

Field Partner Staff

Aloo Beatrice
Eric & Cassy Bergemann
Jonathan Hiebert
Olivia Kayongo
Justine Mpande
Vincey Mutyaba
cissy Nakalembe
Juliet Namata
Allen Tuhimbisomwe
Cissy Zizinga