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 Asociación Arariwa's risk rating from 5 to 3 stars. The analysts have found that Asociación Arariwa's risk variables, reviewed in the new risk rating model, were most representative of a 3-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: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.
 
Asociación Arariwa has been informed of our analysts’ findings and their corresponding change in rating.

Original Partner Description

Unidad Microfinanza Arariwa (UMF Arariwa) is part of a larger umbrella NGO Asociación Arariwa that was founded in 1977 and began offering microcredit in 1994 with the goal of improving the quality of life, skills and equity of the population of the rural Cusco region.

With a market presence stretching across the entire province of Cusco as well as portions of Puno, Apurimac and Madre de Dios provinces, UMF Arariwa currently serves approximately 14,000 low income entrepreneurs with financial and business development services. UMF Arariwa maintains a strong focus on the village banking methodology, outreach to women – approximately 72% of borrowers are women – and education (all village banking clients receive training in one of four areas). UMF Arariwa’s services are tailored towards micro-enterprise owners interested primarily in group loan products.

UMF Arariwa was cited as one of the Top 25 Peruvian Microfinance Institutions in October 2009.

Mission: To contribute to the improvement of the quality of life of low-income women and their families by offering financial and educational services.

Vision: By 2010, poor urban and rural sectors of the South Andes will have their own well-funded economic activies, will generate higher incomes, and will improve their overall quality of life thanks to the quality, coverage and diversity of the financial and non-financial services provided to them by Arariwa's Unidad de Microfinanzas. UMF Arariwa provides these services with leadership, sustainability, and a focus on human development.

Values

Respect - For our colleagues, clients and society
Loyalty - To the institution, to its principles and business rules. Report incorrect actions of our colleagues and clients
Honesty - Work with transparency, decency, responsibility and professionalism, to maintain the trust that society and our clients place in our organization
Confidentiality - Protect the information entrusted to us by UMF Arariwa, our colleagues and our clients during our day-to-day work
Integrity in the use of resources - Use only the resources that correspond to UMF Arariwa and our clients

 

 


Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 30, 2008 Oct 12, 2005
Total Loans $4,893,150 $280,713,025
Amount of Raised Inactive Loans $0 $10,525
Number Of Raised Inactive Loans 0 17
Amount of Paying Back Loans $961,425 $76,564,275
Number Of Paying Back Loans 1,682 92,262
Amount of Ended Loans $3,931,725 $204,138,225
Number Of Ended Loans 5,468 280,125
Delinquency Rate 1.03% 2.45%
Amount In Arrears $7,040 $1,254,316
Outstanding Portfolio $686,724 $51,149,836
Number of Loans Delinquent 45 11,545
Default Rate 0.00% 1.12%
Amount of Ended Loans Defaulted $0 $2,280,201
Amount of Ended Loans $3,931,725 $204,138,225
Number Of Ended Loans Defaulted 0 6,779
Currency Exchange Loss Rate 0.00% 0.00%
Amount of Currency Exchange Loss $0 $12,824
Refund Rate 0.82% 1.24%
Amount of Refunded Loans $39,925 $3,477,150
Number Of Refunded Loans 71 4,129

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 78.91% 74.90%
Average Loan Size $388 $389
Average Individual Loan Size $495 $618
Average Group Loan Size $3,373 $1,631
Average Number Of Entrepreneurs Per Group 12.6 8
Average GDP Per Capita (PPP) in Local Country $6,715 $3,402
Average Loan Size / GDP Per Capita (PPP) 5.77% 11.42%
Average Time To Fund A Loan 2.65 days 3.96 days
Average Dollars Raised Per Day Per Loan $146.31 $98.13
  Average Loan Term 3.87 months 9.26 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,275 131,404
  Journaling Rate 53.49% 39.40%
  Average Number Of Comments Per Journal 0.06 0.16
  Average Number Of Recommendations Per Journal 0.35 4.21

Kiva HelpBorrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Average Interest Rate and Fees Borrowers Pay (Portfolio Yield) 34.50% 45.10% 36.11%
  Average Partner Return On Assets (Average Profitability) -0.8% 4.1% -1.45%
  Average Loan Size (% of Per Capita Income) 11.11% 29.80% 43.69%

Kiva HelpCountry Fast Facts

Field Partner Staff

Jeff Bochsler
Amelia Burke
Boris Flores
Raquel Indira
Caroline Nguyen
Karla Dyan Pineda Moscoso
Ninoska Saravia Cunza
Rolando Villanueva Florez
Hugo Yanque Martínez