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 Caja Rural Señor de Luren's risk rating with a higher level of granularity. As a result, Caja Rural Señor de Luren'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.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.
 
Caja Rural Señor de Luren has been informed of the change in the display of their rating on Kiva's website.

Original Partner Description

The Rural Credit and Savings Bank of Señor de Luren began its operations on May 23, 1994 in the city of Ica in southern Peru, with the mission of promoting the development of the agricultural sector through lending. In 2003, they began diversifying into other economic sectors, introducing new lending products such as microenterprise, consumer and home loans. They have recently experienced significant growth and by the end of September 2011 had a network of 55,443 borrowers, a loan portfolio valued at approximately $184 million USD, and 41 offices throughout the country. Caja Luren provides three major products to its clients:

• Microcredit
• Micro savings
• Micro insurance

Ever since the infrastructure in Ica was largely destroyed and the economy deeply weakened by a devastating earthquake in 2007, Caja Luren has found itself uniquely positioned to serve an area of great economic need as residents seek to rebuild their lives, homes and economic livelihoods. After the earthquake hit, Caja Luren provided 6-month grace periods to a large portion of their affected portfolio.

As part of an effort to reduce institutional operating expenses, Caja Luren began a partnership with Peru’s National Bank to share offices with the bank. This helped expand access to some of the more inaccessible regions of Peru by significantly lowering the operational cost of working in these rural areas. This partnership has grown to the point where more than half of Caja Luren’s 42 offices throughout the country are now shared under this agreement.

Caja Luren is a regulated institution and reports monthly to the Peruvian Superintendent of Banks (SBS). They adhere to SBS standards for financial reporting and receive auditors from the SBS annually. They have also developed a well-established internal risk management function that includes a risk management department and an internal audit department with detailed process and procedural manuals.

Caja Luren is using Kiva funding to expand its lending operations to support new microentrepreneur clients and residents whose homes were destroyed in the devastating earthquake in 2007. They will focus primarily on providing capital to encourage business growth and housing repair and construction in the rural areas within the Ica province.

Learn more:
Join the Amigos de Caja Rural Señor de Luren lending team
Read about Caja Rural Señor de Luren on the Kiva Fellows blog


Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Oct 22, 2009 Oct 12, 2005
Total Loans $2,055,200 $426,651,775
Amount of Raised Inactive Loans $0 $238,975
Number Of Raised Inactive Loans 0 213
Amount of Paying Back Loans $1,017,600 $94,149,725
Number Of Paying Back Loans 1,478 101,646
Amount of Ended Loans $1,037,600 $332,263,075
Number Of Ended Loans 1,718 435,701
Delinquency Rate 2.82% 1.91%
Amount In Arrears $18,159 $1,156,960
Outstanding Portfolio $643,192 $60,497,022
Number of Loans Delinquent 153 9,042
Default Rate 6.33% 0.97%
Amount of Ended Loans Defaulted $65,660 $3,220,059
Amount of Ended Loans $1,037,600 $332,263,075
Number Of Ended Loans Defaulted 163 9,823
Currency Exchange Loss Rate 0.00% 0.02%
Amount of Currency Exchange Loss $0 $77,435
Refund Rate 0.25% 0.95%
Amount of Refunded Loans $5,225 $4,068,925
Number Of Refunded Loans 9 4,589

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 51.77% 74.04%
Average Loan Size $642 $407
Average Individual Loan Size $643 $646
Average Group Loan Size $450 $1,744
Average Number Of Entrepreneurs Per Group 2 8
Average GDP Per Capita (PPP) in Local Country $6,715 $3,345
Average Loan Size / GDP Per Capita (PPP) 9.57% 12.17%
Average Time To Fund A Loan 9.56 days 4.68 days
Average Dollars Raised Per Day Per Loan $67.22 $86.95
  Average Loan Term 11.37 months 9.61 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,562 203,769
  Journaling Rate 77.95% 39.99%
  Average Number Of Comments Per Journal 0.01 0.11
  Average Number Of Recommendations Per Journal 0.02 2.72

Kiva HelpBorrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield 22.10% 25.70% 35.02%
  Profitability (Return on Assets) 1.2% 1.8% -0.38%
  Average Loan Size (% of Per Capita Income) 83.40% 35.60% 46.53%

Kiva HelpCountry Fast Facts

Field Partner Staff

Karla Carlos Angulo
Zach Kahn
Victor Miranda
Bertha Nevado San Miguel
Xiomara Rivera Pardo