Last updated March 7, 2013

Partner Description:

Fondo de Desarrollo Microempresarial (FODEMI) is a microenterprise development fund that supports groups of entrepreneurs who have no access to formal financial systems. The organization works with vulnerable populations, especially women, in the marginalized urban and rural sectors of Ecuador. Its clients work in a variety of sectors including agriculture, artisan crafts and the commercial and service sectors.

Founded in 1995, the organization helps poor people in rural areas to start or expand their businesses by offering microloans and a wide range of training and business services. Those who apply for a loan through FODEMI receive supervision and guaranteed support from a team of technicians in charge of ensuring safe utilization of funds, as well as training in ‘soft’ skills to help them succeed in their businesses.

To date, the organization has helped more than 300 clients in Ecuador to establish or improve their businesses. Kiva lenders’ funds are used to expand the organization’s services to the poor living in more rural parts of Ecuador.

A unique lending approach:

FODEMI offers short term loans to micro-enterprise owners who require funding to develop their businesses. The guarantees and the requirements are minimal because the organization is targeting poor people in rural areas. According to the organization, the most important requirement is clients’ solidarity and moral responsibility.



FODEMI’s financial services include community banking, individual credit and solidarity group loans. Community banking loans are designed to help people with common goals access finance without substantial collateral. In contrast, individual credit is offered to micro or small business owners who have the capacity to pay, are financially solvent and meet all of the credit requirements. Group loans are designed to give access to credit without personal guarantees through the formation of a group whose members mutually guarantee each other’s commitment.

Status Update - 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 reassessment of the level of risk posed by this institution.

During this reassessment, 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 FODEMI's risk rating with a higher level of granularity. As a result, FODEMI'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.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Apr 28, 2011 Oct 12, 2005
Total Loans $1,077,450 $586,752,200
Amount of raised Inactive loans $0 $577,875
Number of raised Inactive loans 0 497
Amount of Paying Back Loans $604,750 $119,930,525
Number of Paying Back Loans 469 126,855
Amount of Ended Loans $472,700 $466,243,800
Number of Ended Loans 557 592,926
Delinquency Rate 0.00% 3.31%
Amount in Arrears $0 $2,600,200
Outstanding Portfolio $522,873 $78,632,824
Number of loanDelinquent 0 9,782
Default Rate 0.00% 1.14%
Amount of Ended Loans Defaulted $0 $5,336,912
Amount of Ended Loans $472,700 $466,243,800
Number of Ended Loans Defaulted 0 16,802
Currency Exchange Loss Rate 0.00% 0.08%
Amount of Currency Exchange Loss $0 $480,684
Refund Rate 0.55% 0.77%
Amount of Refunded Loans $5,900 $4,496,250
Number of Refunded Loans 7 5,040

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 70.26% 74.16%
Average Loan Size $641 $418
Average Individual Loan Size $747 $656
Average Group Loan Size $2,992 $1,827
Average number of borrowers per group 5.7 8
Average GDP per capita (PPP) in local country $10,200 $3,432
Average Loan Size / GDP per capita (PPP) 6.29% 12.19%
Average Time to Fund a Loan 4.6 days 5.58 days
Average Dollars Raised Per Day Per Loan $139.47 $75.00
  Average Loan Term 12.25 months 10.31 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 62 293,078
  Journaling Rate 10.07% 42.42%
  Average Number of Comments Per Journal 0.02 0.08
  Average Number of Recommendations Per Journal 0.00 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 24% PY 20.00% PY 33.64% PY
  Profitability (return on assets) 4.3% 1.8% -1.40%
  Average Loan Size (% of per capita income) 13.40% 49.00% 41.35%

Country Fast Facts

Field Partner Staff

Vladimir Batioja
Robinson Cedenio
Maggy Jingo
Jorge Malte
Francia Cesibel Navarrete Díaz
Sonia Maritza Pozo
Luis Fernando Rios Ramos
Rosa de las Mercedes Roldán Robles
Oscar Ruiz
Mayra Cristina Vásquez Rosales