EDPYME Alternativa became a Kiva.org field partner in September 2009. EA was interested in using the interest free capital to expand services to underserved populations, specifically borrowers living in rural areas where access to capital is extremely limited. EA created a new product, Capital Semilla, small loans exclusively funded through Kiva.


Mission & Action:

EA’s mission is to develop and provide competitive financial services to small and micro entrepreneurs. In completion of the mission, EA believes it is necessary to be a sustainable institution and a leader in the microfinance sector of Peru. The institution’s core values are honesty, loyalty, respect, cooperation and service. Through the efforts of its dedicated staff across more than twelve branches, EA serves marginalized rural and urban populations in northern Peru, with an expanding presence in northeastern Peru as well as the capital city of Lima.

EA operates based on highly organized and efficient protocols – from borrower identification to risk analysis. They offer a number of financing products including short-term business loans (less than 3 months), medium-term business loans (less than 36 months), agricultural loans, auto loans, and home improvement loans and mortgages.

EA works hard to ensure its clients are well informed of the products, policies and options that are presented to them. One especially useful tool for potential borrowers is the Loan Simulator, which is published on the website and used by each loan officer in reviewing the costs of the credit.

Non-Financial Services:

In addition to offering financial products, EA also provides the following products and services to its clients:
• Low-cost insurance against the principal of the loan in case of death or disability provided by INVITA insurance
• Micro insurance product, Viviendo Seguro, which provides limited protection against injury and disability
Surety bonds for contractors and other entrepreneurs
Money transfers through Western Union
• http://www.alternativa.com.pe/id=soat.htm">Vehicular liability insurance
• Forwarding of free business, technology and agricultural workshops provided by the Chamber of Commerce of Lambayeque.
• Donation collection after natural disasters or extreme weather.

To maintain their presence in the community, EA also holds an annual “Chocolatada” near Christmas time. For the Chocolatada, EA selects a disadvantaged population in the area and holds a large reunion in their neighborhood. EA brings the majority of its staff into the community and gives out presents, food and other assistance to the residents. The event turns into a lively and lovely party, in which the staff of EA and community members share stories and food, getting to know each other better.

History:

In 1993 the Chamber of Commerce of Lambayeque formed an agreement with the Inter-American Development Bank (IADB) to begin a program to offer financial services and technical assistance to small and micro enterprises. As a part of the program the group distributed credit to small businesses for a period of 8 years. At the end of the eight years, they decided to separate the microfinance wing from the Chamber and institutionalize it. Therefore the Chamber organized with the SBS (Peruvian Superintendent of Banks and Insurers) to open an Entity for the Development of the Small and Microenterprise (EDPYME) and in September 2001 EDPYME Alternativa was born with the Chamber as the majority shareholder.

Organization as an EDPYME brings EA under the regulatory umbrella of the SBS. EA must report on a regular basis to the SBS and adhere to its regulations. Adherence earns EA credibility and access to SBS credit rating database.

Support EDPYME's Alternativa's mission by joining our lending team: Friends of Edpyme Alternativa.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 11, 2009 Oct 12, 2005
Total Loans $3,873,600 $597,848,925
Amount of raised Inactive loans $375 $504,900
Number of raised Inactive loans 1 493
Amount of Paying Back Loans $917,825 $121,226,950
Number of Paying Back Loans 1,399 129,159
Amount of Ended Loans $2,955,400 $476,117,075
Number of Ended Loans 5,694 603,979
Delinquency Rate 0.65% 4.84%
Amount in Arrears $3,959 $3,854,293
Outstanding Portfolio $610,627 $79,714,002
Number of loanDelinquent 57 20,255
Default Rate 0.71% 1.12%
Amount of Ended Loans Defaulted $20,902 $5,350,086
Amount of Ended Loans $2,955,400 $476,117,075
Number of Ended Loans Defaulted 87 16,822
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $538,749
Refund Rate 0.29% 0.76%
Amount of Refunded Loans $11,375 $4,542,825
Number of Refunded Loans 25 5,071

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 55.48% 74.20%
Average Loan Size $546 $418
Average Individual Loan Size $546 $656
Average Group Loan Size $0 $1,830
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $6,715 $3,427
Average Loan Size / GDP per capita (PPP) 8.13% 12.21%
Average Time to Fund a Loan 7.65 days 5.65 days
Average Dollars Raised Per Day Per Loan $71.37 $74.03
  Average Loan Term 10.9 months 10.37 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,162 298,548
  Journaling Rate 18.11% 42.47%
  Average Number of Comments Per Journal 0.01 0.08
  Average Number of Recommendations Per Journal 0.48 1.86

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 32% PY 29.00% PY 33.26% PY
  Profitability (return on assets) 1.5% 1.4% -1.45%
  Average Loan Size (% of per capita income) 21.80% 42.00% 40.88%

Country Fast Facts

Field Partner Staff

Manuel Delgado
Gilmer Hernandez
Karen Lizama
Jeff Nelson
Mery Polo
Karla Pomares
Icaro Rebolledo
Icaro Rebolledo
Segundo Zapata Cruz