Partner Description:

VisionFund Mexico has over 15 years of experience operating a variety of microcredit programs and other services that incubate and develop microenterprises located in rural and semi-urban regions and communities in 12 Mexican states.

The organization’s mission is to offer financial and non-financial services to families that do not have access to formal banking services and to improve their quality of life. Its target market consists of men and women who have the willingness and ability to repay, who run small businesses or wish to start one, and who need small loans to establish sustainable incomes.

Through group loans, VisionFund Mexico supports productive economic activities in trade, industry, services, agriculture and livestock. This includes the making of traditional sweets, handicrafts (clay objects and figures), textiles (weaving), traditional foods like tortillas, baking and more.

The organization adapts to the needs of its market through:

Communal Banks (Bancos Comunales)
: Loans granted to groups of 8 to 30 people who cross-guarantee each other’s loans. This system makes it possible for the poorest entrepreneurs to obtain credit. Weekly meetings of group members with VisionFund Mexico loan officers ensure accountability and support, and build business skills. Loans typically range from US$50 to $500.

Solidarity Groups (Grupos Solidarios): Loans granted to groups of 4 to 10 people and designed for more experienced entrepreneurs with larger enterprises who guarantee each other’s loans. Members who make repayments on time become eligible for larger individual loans within VisionFund Mexico. Loan sizes range from US$300 to $800.

Entrepreneurial Families (Familias Emprendadoras): Loans that are granted to at most 8 members from the same family for a joint economic project or various individual ones, with the ultimate goal to strengthen the union of the family.

Individual Loans: Loans awarded to borrowers with good credit history, a successful micro-business and a long relationship with VisionFund Mexico.

Collateral Loans: Loans given to clients to buy school supplies for their children.

VisionFund Mexico provides numerous innovative nonfinancial services to its micro-clients. These include classes in money management, business and marketing. Fish farmers are trained in how to best raise fish. Micro-entrepreneurs are taught how to turn ideas into formal business plans. And a number of beekeeping families have been taught to produce and market honey -- as well as sell it internationally at fair market prices with VisionFund Mexico’s help and training. Future projects include a re-forestation initiative in the state of Veracruz, with borrowers receiving training and trees to plant.

VisionFund Mexico is a reliable and formally-established organization committed to the development and wellbeing of our clients. You can join other Kiva lenders who support VisionFund Mexico by joining the Friends of Fundacion Realidad lending team.

Status Update - 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.

Kiva's new risk rating system, which now includes half stars, has enabled us to display VisionFund Mexico’s risk rating with a higher level of granularity. As a result, this organization’s risk rating will now be displayed as 3.5 stars instead of 4 stars. 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. VisionFund Mexico has been informed of the change in the display of their rating on Kiva's website.

Status Update - November 13, 2012

Fundación Realidad (FRAC) recently transferred its microfinance portfolio and operations to VisionFund Mexico, a new lending institution established in 2012. FRAC and VisionFund Mexico are sister organizations under the World Vision umbrella, and FRAC will continue to function as a provider of non-financial services to complement VisionFund Mexico's lending operations. 

VisionFund International is the microfinance subsidiary of World Vision. In 1993, World Vision began to implement microfinance programming through the creation and development of microfinance institutions (MFIs) to benefit the economically active poor in countries where it had existing programming. In 2003, World Vision established VisionFund International to oversee and manage this network of affiliated MFIs.

VisionFund International is a nonprofit organization that owns the for-profit entity VisionFund Mexico. While this shift represents a change in legal status, VisionFund Mexico will continue to serve the same populations and pursue the same social mission as FRAC.

A Note on VisionFund Mexico’s Portfolio Yield:

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.


For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.


We seek to support loans that don’t impose an unjustifiable cost burden on hard-working borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale. With this partner, Kiva capital is supporting a loan product that costs less than the partner's typical products.


Factors that drive up the costs that this partner organization charges its borrowers include:

  • They provide very small loans. This leads to higher operating costs, since providing each individual loan presents a minimum per-unit cost.

  • They provide very short term loans, which leads to higher operating costs, since each short-term loan generates a smaller amount of revenue than a longer-term loan.

  • They pay high interest rates on the loans they take from banks and other funders, given the market in which they operate. This means they need more support from innovative sources like Kiva to reduce costs and pass savings on to borrowers.

  • They provide more than just cash to many of their borrowers, including costly wraparound services such as healthcare, financial or business training, agricultural extension services, insurance or access to education.

  • This partner operates in Mexico, a country where microfinance services tend to be very expensive. This partner charges substantially lower rates than competing organizations. For more information about microfinance interest rates in Mexico, please seethis FAQ.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 21, 2009 Oct 12, 2005
Total Loans $8,668,800 $733,103,625
Amount of raised Inactive loans $0 $307,625
Number of raised Inactive loans 0 241
Amount of Paying Back Loans $1,043,425 $135,542,175
Number of Paying Back Loans 294 156,465
Amount of Ended Loans $7,625,375 $597,253,825
Number of Ended Loans 3,452 740,556
Delinquency Rate 1.91% 9.50%
Amount in Arrears $11,551 $8,422,085
Outstanding Portfolio $603,261 $88,677,754
Number of Loans Delinquent 26 31,102
Default Rate 0.47% 1.17%
Amount of Ended Loans Defaulted $35,608 $6,986,114
Amount of Ended Loans $7,625,375 $597,253,825
Number of Ended Loans Defaulted 80 20,018
Currency Exchange Loss Rate 0.07% 0.29%
Amount of Currency Exchange Loss $6,461 $2,153,504
Refund Rate 0.13% 0.67%
Amount of Refunded Loans $11,600 $4,933,650
Number of Refunded Loans 3 5,440

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 88.80% 74.48%
Average Loan Size $438 $416
Average Individual Loan Size $607 $652
Average Group Loan Size $3,169 $1,849
Average number of borrowers per group 7.4 8
Average GDP per capita (PPP) in local country $15,600 $5,942
Average Loan Size / GDP per capita (PPP) 2.81% 7.00%
Average Time to Fund a Loan 3.86 days 6.48 days
Average Dollars Raised Per Day Per Loan $113.31 $64.21
  Average Loan Term 4.27 months 10.8 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 4,016 362,000
  Journaling Rate 94.06% 41.45%
  Average Number of Comments Per Journal 0.07 0.06
  Average Number of Recommendations Per Journal 0.09 1.53

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 56% PY 74.00% PY 31.73% PY
  Profitability (return on assets) -0.2% 1% -0.77%
  Average Loan Size (% of per capita income) 3.70% 4.00% 19.33%

Country Fast Facts

Field Partner Staff

Erendira Gil
Rosa Velia Gonzalez Herrera
Lorenzo Hernandez Moreno
Etelvina Hernandez Sampayo
Alejandro Hernandez Sanchez
Victor Ibarra Andrade
Daniel Alejandro Montes Rojas
Hortensia Moreno
Guadalupe Perez Medina
Lucia Perez Torres

Kiva Fellow(s)

Caroline Schwartz