Status Update - May 3, 2013

ASI Federal Credit Union has been experiencing an increased rate of defaults. This is possibly related to the experimental nature of the loan products the organization provides. In order to serve asset-poor communities in New Orleans -- including many still recovering from Hurricane Katrina and the BP Oil Spill -- ASI offers loan products designed to help people start and grow businesses even if they don't have extensive collateral, credit histories, or business experience. For these reasons, these loans also carry a higher level of risk than typical loans on Kiva.
 
In cases of default, ASI is making every effort to recover funds from the borrowers in question. However, in some instances, the organization has been unable to locate or contact clients in default. We will continue to update this page as we learn more. 
 
 
 
The Organization:
 
ASI Federal Credit Union is a community development lender founded in 1961 to create financial opportunity for citizens of the Greater New Orleans Area.  ASI helps promote economic empowerment for all members, with special emphasis on creating opportunity for low-wealth, women and minority borrowers.  ASI has provided over one billion dollars in loans since inception and assisted over 100,000 low-wealth and otherwise disadvantaged borrowers with loans for education, transportation, homeownership and microenterprise.  To support innovation and growth, ASI relies on the support of social investors who choose to bank at ASI and members drawn to the double-bottom line mission of the credit union. 
 
ASI is known nationwide for its advocacy of the underserved and in particular for its innovative products and services, including several low-cost alternatives to predatory payday lending.  ASI’s nonprofit affiliate, A Shared Initiative, Inc. supports the credit union through the provision of financial education and lending support for non-traditional borrowers.  We invite applicants drawn to ethical lending and a culture of financial innovation to read about our microentrepreneurs.  
 
The Need for MicroLoans in the U.S.
 
More than 99% of businesses with payrolls in this country are small businesses, according to the Small Business Administration, and those small businesses historically employ more than half of all workers, creating an estimated 80% of new jobs in the U.S.  Small business owners play a large role in an improved economy, more wealth creation for the middle class, lower unemployment, and innovation and growth across all industry sectors.  Micro-enterprise is one of the few ways that many U.S. families raise themselves out of poverty to create prosperity for their families.  Insufficient access to affordable lending capital represents one of the largest obstacles to small business success in our nation.  When you support a Kiva New Orleans borrower, you are supporting the sustainability and growth of many families and businesses who will be positively impacted through an economic multiplier effect.  
 
Loan Products and Services
 
In addition to Kiva New Orleans micro-loans, ASI offers checking and savings accounts, certificates of deposit, mortgage products, auto loans, SBA and other business loans, personal loans, Visa Cards, tuition loans and many other lending products.  Our nonprofit affiliate offers financial education including credit counseling, first time homebuyer education, and foreclosure prevention assistance.  We encourage you to visit our website to learn more about ASI:  www.asifcu.org.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 28, 2011 Oct 12, 2005
Total Loans $372,500 $615,272,575
Amount of raised Inactive loans $0 $387,400
Number of raised Inactive loans 0 536
Amount of Paying Back Loans $90,000 $120,891,375
Number of Paying Back Loans 9 130,382
Amount of Ended Loans $282,500 $493,993,800
Number of Ended Loans 33 623,966
Delinquency Rate 10.17% 4.42%
Amount in Arrears $3,807 $3,437,053
Outstanding Portfolio $37,443 $77,771,138
Number of loanDelinquent 3 16,218
Default Rate 40.15% 1.09%
Amount of Ended Loans Defaulted $113,425 $5,399,198
Amount of Ended Loans $282,500 $493,993,800
Number of Ended Loans Defaulted 17 16,856
Currency Exchange Loss Rate 0.00% 0.10%
Amount of Currency Exchange Loss $0 $614,667
Refund Rate 0.00% 0.74%
Amount of Refunded Loans $0 $4,567,000
Number of Refunded Loans 0 5,104

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 61.90% 74.23%
Average Loan Size $8,869 $419
Average Individual Loan Size $8,869 $655
Average Group Loan Size $0 $1,835
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $47,000 $3,415
Average Loan Size / GDP per capita (PPP) 18.87% 12.26%
Average Time to Fund a Loan 4.22 days 5.74 days
Average Dollars Raised Per Day Per Loan $2,100.75 $72.91
  Average Loan Term 37.71 months 10.45 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 8 307,487
  Journaling Rate 36.36% 42.28%
  Average Number of Comments Per Journal 1.38 0.07
  Average Number of Recommendations Per Journal 0.13 1.80

Borrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 9% PY N/A 33.15% PY
  Profitability (return on assets) 0.3% N/A -1.29%
  Average Loan Size (% of per capita income) 17.80% N/A 38.08%

Country Fast Facts

Field Partner Staff

Hema Banangada
Rob Bell
Will Bienvenu
Lyntrell Brock
Joshua Bromer
Tina Cunningham
Kenneth Johnson
Rhonda Krubbe
Danny Maiuri
Cene Price
Trenika Starks
Mignhon Tourne