Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Partner Description:

Kubo.financierois a regulated microfinance institution that provides accessible and affordable loans to borrowers in Mexico. Ranging from US$400 to $4,100, these loans can be used for working capital, fixed assets, education fees and supplies, and pre-payment for other loans that have higher interest rates.

Kubo operates in Mexico, which has one of the highest average interest rates in Latin America for two major reasons:

1) Banks and other lenders need to cover their administration and operation costs even though they provide very small loans. Incidentally, Mexico has one of the smallest average loan sizes and the deepest market penetration for microloans. The smaller the loan, the higher the interest needs to be to cover all the associated costs -- especially in remote regions where traveling to borrowers is expensive and time intensive.

2) Interest rates are also high because banks and other lenders are unable to take individual risk profiles into account. As a result, they must charge a higher interest rate across the board to cover risk of default -- sometimes as high as 120%.

While Kiva works with other lending partners in Mexico, we’re proud that they charge relatively lower interest rates between 55% and 85%.

User-added image

Kubo uses an online platform and branchless banking to significantly reduce the cost of lending. Because the microfinance market is Mexico is very large, the organization is able to access a growing amount of data about borrowers and their credit histories.

This enables it to provide borrowers with individualized interest rates of 22% to 50%, depending on a borrower’s risk profile. Interest is charged on declining principal, with no collateral required, and the organization charges a small 3% to 5% service fee to cover administration costs of small loans in remote areas.

By integrating technology and data, Kubo has positioned itself to support the more than 90% of Mexican businesses that qualify as small or micro-enterprises. And, with rapid internet penetration in Mexico, the organization has distinguished itself as an innovative lending platform in the region.

With funding from Kiva lenders, Kubo can expand its lending network even further, reach riskier clients who have less credit history, decrease interest rates for borrowers, and scale its service area.

A note about Kubo Financero's portfolio yield:

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.


For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.


We seek to support loans that don’t impose an unjustifiable cost burden on hard-working borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale. With this partner, Kiva capital is supporting a loan product that costs less than the partner's typical products.


Factors that drive up the costs that this partner organization charges its borrowers include:

  • They provide very small loans. This leads to higher operating costs, since providing each individual loan presents a minimum per-unit cost.

  • This partner operates in Mexico, a country where microfinance services tend to be very expensive. This partner charges substantially lower rates than competing organizations. For more information about microfinance interest rates in Mexico, please see this FAQ.

Image courtesy of Kubo.Financiero.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 2, 2013 Oct 12, 2005
Total Loans $575,650 $734,143,750
Amount of raised Inactive loans $0 $332,000
Number of raised Inactive loans 0 299
Amount of Paying Back Loans $129,700 $135,325,225
Number of Paying Back Loans 154 157,009
Amount of Ended Loans $445,950 $598,486,525
Number of Ended Loans 442 741,379
Delinquency Rate 1.58% 8.79%
Amount in Arrears $1,383 $7,831,196
Outstanding Portfolio $87,542 $89,094,432
Number of Loans Delinquent 15 30,270
Default Rate 4.93% 1.27%
Amount of Ended Loans Defaulted $21,996 $7,572,494
Amount of Ended Loans $445,950 $598,486,525
Number of Ended Loans Defaulted 31 20,838
Currency Exchange Loss Rate 0.83% 0.29%
Amount of Currency Exchange Loss $4,768 $2,153,504
Refund Rate 0.52% 0.67%
Amount of Refunded Loans $2,975 $4,933,875
Number of Refunded Loans 2 5,441

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 59.00% 74.49%
Average Loan Size $968 $416
Average Individual Loan Size $968 $651
Average Group Loan Size $0 $1,849
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $15,600 $5,941
Average Loan Size / GDP per capita (PPP) 6.20% 7.00%
Average Time to Fund a Loan 5.8 days 6.49 days
Average Dollars Raised Per Day Per Loan $166.97 $64.09
  Average Loan Term 9.48 months 10.8 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 96 363,219
  Journaling Rate 19.38% 41.50%
  Average Number of Comments Per Journal 0.00 0.06
  Average Number of Recommendations Per Journal 0.00 1.53

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 54% APR 74.00% PY 31.61% PY
  Profitability (return on assets) -7.1% 1% -0.48%
  Average Loan Size (% of per capita income) N/A 4.00% 19.33%

Country Fast Facts

Field Partner Staff

Vicente Fenoll
José Luis García
Edna Lara
Emmanuel Lopez
Estefania Martinez
Rogelio Monroy
Federico Ramos
Gonzalo Salazar
Allan Seidman
Susana Valenzuela

Kiva Fellow(s)

Caroline Schwartz