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 Al-Watani's risk rating with a higher level of granularity. As a result, Al-Watani'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.
 
Al-Watani has been informed of the change in the display of their rating on Kiva's website.

Original Partner Description

Al-Watani (National Microfinance Bank) is a Jordanian private shareholding not-for-profit Company that works in the development of the local communities through enabling the underserved segments of society with proper access to the financial services in order to boost their participation in the economic activities and become energetically members in their society, to meet this aim Al-Watani is providing the income-generating projects with the needed finance for establishing or expending purposes along with spreading a culture of microcredit and entrepreneurship throughout the country.
Al-Watani also aims to implement a poverty alleviation strategy by significantly increasing the productivity of existing micro and small entrepreneurs of Jordan, particularly women, also providing services to improve the standard of living of our clients such as loans for education, health care, home improvement...etc., taking into consideration the needs of the current and potential clients for the non-financial services aiding them in improving their productivity through the training on the financial and managerial skills, facilitating the participation in the exhibitions and bazars, forming and managing the business networks, and much more.
Al-Watani maintains its competitive edge in the market by designing, piloting and rolling out different flexible loan products; opening a wide network of decentralized branches; and building strategic partnerships.  One of Al-Watani’s goals is to build a financially sustainable microfinance institution by employing cost efficient methodologies and accessing a board variety of financing sources.
 
In March 27, 2006 under the patronage of Her Majesty Queen Rania and His Highness’ Prince Talal bin Abdul-Aziz, Al-Watani disbursed its first loans and opened three branches. We now have fourteen branches throughout Jordan and serve over 38,000 clients through a variety of loan products including, education, health, home-improvement and business-related loans in amounts ranging from 300 to 70,000 USD. The repayment period ranges between 1 to 48 months depending on the cash flow of the business and the type of loan. In 2013, Al-Watani launched the micro-insurance (Inpatient health insurance) which provides clients with low-income and not covered by health insurance the opportunity to get excellent medical services and treatment, which would enable them to improve their standard of living and meet the various emergency conditions. With our diverse financial service offerings, we aim to promote productive projects and enhance the livelihoods of underserved members of Jordan’s society.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 30, 2011 Oct 12, 2005
Total Loans $3,880,325 $590,493,925
Amount of raised Inactive loans $0 $760,725
Number of raised Inactive loans 0 618
Amount of Paying Back Loans $1,639,125 $122,947,725
Number of Paying Back Loans 1,449 130,861
Amount of Ended Loans $2,241,200 $466,785,475
Number of Ended Loans 2,161 593,552
Delinquency Rate 0.88% 4.24%
Amount in Arrears $8,289 $3,465,940
Outstanding Portfolio $945,844 $81,785,048
Number of loanDelinquent 47 16,779
Default Rate 0.62% 1.15%
Amount of Ended Loans Defaulted $13,969 $5,349,645
Amount of Ended Loans $2,241,200 $466,785,475
Number of Ended Loans Defaulted 28 16,827
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $536,772
Refund Rate 0.09% 0.77%
Amount of Refunded Loans $3,425 $4,537,625
Number of Refunded Loans 3 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 74.97% 74.17%
Average Loan Size $1,075 $418
Average Individual Loan Size $1,075 $656
Average Group Loan Size $0 $1,828
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $3,740 $3,430
Average Loan Size / GDP per capita (PPP) 28.74% 12.19%
Average Time to Fund a Loan 10.76 days 5.59 days
Average Dollars Raised Per Day Per Loan $99.92 $74.77
  Average Loan Term 15.53 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,510 295,681
  Journaling Rate 57.42% 42.39%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.00 1.87

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 34% PY 34.00% PY 33.46% PY
  Profitability (return on assets) 9.9% 6.8% -1.39%
  Average Loan Size (% of per capita income) 13.30% 14.00% 41.11%

Country Fast Facts

Field Partner Staff

Noor Al Dabbas
Manar Almuhaisen
Nour Hamarneh
Taline Khansa
Ahmad Malalha
Maha Mayyaleh
Khaled Muhiesen