Last updated October 5, 2012

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 Gyumri, Sisian, Goris, Talin, Armavir, Artashat and Kapan, and representative offices in 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 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 $59 million in loans to more than 53,000 clients. It has also created and sustained over 49,000 jobs and positively impacted 92,000 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: 48%
- Geographic reach to World Vision Area Development Programs: 60%
- # of children impacted: No less than the number of loans made
- Average loan size: Below US$1,500 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.

Team and Honors

SEF’s team includes more than 144 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.