Last updated October 31, 2013
 

Partner Description:

SEF International extends financial services to Armenian entrepreneurs to fund their small businesses and improve their lives. Through its partnership with Kiva, the organization is able to create sustainable jobs and build brighter futures for families and children.

SEF International is a microfinance subsidiary of World Vision International. Since 2009, it has been overseen by VisionFund, and regulated by the Central Bank of Republic of Armenia since 2003.

Currently, SEF operates through branch offices in two branches at Yerevan, Gyumri, Sisian, Goris, Talin, Armavir, Artashat, Kapan ,Ijevan, Vanadzor, Masis, Ejmiatsin, Stepanavan, Yeghegnadzor and Meghri. The majority of SEF clients are located in Armenia’s poorest rural communities. Accordingly, the organization offers a variety of loan products for farmers, urban businesses, start up and non-formal businesses and consumers focused on improving quality of life for children.

Performance Goals

As a socially-responsible organization, SEF has established a set of operating goals, social performance requirements, sustainability targets and risk restrictions.

From a social impact perspective, SEF has delivered visible results since its founding. In total, it has extended more than $74 million in loans to more than 74,000 clients. It has also created and sustained over 64,000 jobs and positively impacted 109,000 children.

As both a large network and microfinance institution, SEF is guided by two sets of targets: financial sustainability and social performance. However, as a lending institution, it is limited by a number of risk factors. Its performance is a product of three factors:

1) Social performance: SEF has set the following targets to fulfill its social performance commitments:

- % of female clients: 51%

- Geographic reach to World Vision Area Development Programs: 77%

- # of children impacted: No less than the number of loans made

- Average loan size: Below US$1,100 to continue targeting low-income populations

2) Financial sustainability

3) Risk Factors: In its operations, SEF encounters a number of risks, including critical operational risks, market risks and credit risks.

Other Social Activities

SEF International UCO | LTD in conjunction with "CANDLE" launched charity program, which is made ​​with  the Internet sitehttps://www.khanacademy.org/. The most important mission of the program is to make education accessible to everyone. With the help of SEF, Armenian videos which are made based on English video versions are currently available to everyone (http://www.youtube.com/user/KhanAcademyArmenian/feed).   Thanks to these educational videos simple and educational materials are accessible to everyone.

Team and Honors

SEF’s team includes more than 225 experienced professionals. Its management continuously promotes and contributes to the development of its employees.

For achievements in performance, processes and culture, SEF received two merit awards from CGAP for financial transparency. For completing MIX’s social performance desk review process and successfully meeting all 2013 S.T.A.R. requirements, SEF received the S.T.A.R award in November, 2013.
 


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 25, 2010 Oct 12, 2005
Total Loans $5,561,700 $586,752,200
Amount of raised Inactive loans $0 $577,875
Number of raised Inactive loans 0 497
Amount of Paying Back Loans $3,319,725 $119,930,525
Number of Paying Back Loans 1,756 126,855
Amount of Ended Loans $2,241,975 $466,243,800
Number of Ended Loans 1,074 592,926
Delinquency Rate 0.11% 3.31%
Amount in Arrears $2,428 $2,600,200
Outstanding Portfolio $2,150,963 $78,632,824
Number of loanDelinquent 8 9,782
Default Rate 0.26% 1.14%
Amount of Ended Loans Defaulted $5,752 $5,336,912
Amount of Ended Loans $2,241,975 $466,243,800
Number of Ended Loans Defaulted 6 16,802
Currency Exchange Loss Rate 0.00% 0.08%
Amount of Currency Exchange Loss $0 $480,684
Refund Rate 0.30% 0.77%
Amount of Refunded Loans $16,450 $4,496,250
Number of Refunded Loans 10 5,040

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 61.75% 74.16%
Average Loan Size $1,964 $418
Average Individual Loan Size $1,964 $656
Average Group Loan Size $0 $1,827
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $6,400 $3,432
Average Loan Size / GDP per capita (PPP) 30.69% 12.19%
Average Time to Fund a Loan 17.38 days 5.58 days
Average Dollars Raised Per Day Per Loan $112.99 $75.00
  Average Loan Term 24.85 months 10.31 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 863 293,078
  Journaling Rate 93.03% 42.42%
  Average Number of Comments Per Journal 0.03 0.08
  Average Number of Recommendations Per Journal 0.01 1.89

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 29% PY 23.00% PY 33.64% PY
  Profitability (return on assets) 2.8% 3.1% -1.40%
  Average Loan Size (% of per capita income) 27.30% 35.00% 41.35%

Country Fast Facts

Field Partner Staff

Anna Ghazaryan
Anahit Hakobyan
Avet Harutyunyan
Arsen Kuchukyan
Hayk Manucharyan
Hayk Minasyan
Irina Ohanyan
Victoria Papikyan
Levon Rapyan
Arsen Sahakyan