Last updated May 3, 2013

Partner Description:

FUNDAPEC is a student lending organization headquartered in Santo Domingo, Dominican Republic. Founded in 1967 as the funding arm of Action for Education and Culture, its vision is to broaden access to education for all Dominicans. FUNDAPEC began by focusing on specific technical careers, but has expanded its scope to fund education for a wide variety of trades. To date, FUNDAPEC has lent to over 100,000 students to help them afford school.

A number of microfinance institutions and banks in the Dominican Republic offer “consumption” loans that can be used for educational purposes, but these loans have no grace periods and have much higher interest rates than FUNDAPEC’s student loan products. The only other option for students is to have their parents pay the full cost of tuition or to get grants, which are limited and difficult to obtain. More than 40% of Dominican families live under the poverty line. As the cost of technical and higher education is relatively high in the country, these families cannot afford to pay for tuition without some kind of financing.

Kiva lenders’ funds are used to help students in the Dominican Republic pay for their educations. These loans are post-disbursed, and will not be provided to students until they are fully funded by Kiva lenders.  FUNDAPEC will fund the following education related needs: a) full tuition plus living expenses including transportation costs, as well as school-related expenses including books and laptop computers; b) partial tuition plus living and school-related expenses; c) living and school-related expenses (excluding tuition fees).

A unique lending approach:

The organization offers eight different loan products. These include loans for high school studies, degrees in technical fields, masters and doctoral degrees, masters for business executives, continuing education and more. Additionally, FUNDAPEC covers other education expenses, including the purchase of laptops, transportation, etc.

FUNDAPEC does not sign formal contracts with any partner universities. Because the organization has existed for so long and has garnered such a positive reputation in the country, this formality is unnecessary. Today, FUNDAPEC works with almost every university in the country -- a huge achievement for this type of organization.

This enables students to attend school wherever they want, and FUNDAPEC will disburse the  loan funds directly to the school each semester, aggregating tuition costs for all of the students choosing to enroll for the term. Loans for equipment or transportation are disbursed directly to the students themselves.

The education loans administered by FUNDAPEC can have loan terms of up to 12 years, which includes a grace period of up to 5 years. The grace period includes the time during which the student is enrolled at university. During the grace period, the borrower is not required to make any repayments, and lenders will not receive any repayments.

 

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 6, 2013 Oct 12, 2005
Total Loans $401,550 $590,831,750
Amount of raised Inactive loans $0 $819,825
Number of raised Inactive loans 0 696
Amount of Paying Back Loans $401,550 $116,310,325
Number of Paying Back Loans 64 123,737
Amount of Ended Loans $0 $473,701,600
Number of Ended Loans 0 601,061
Delinquency Rate 0.00% 4.21%
Amount in Arrears $0 $3,160,641
Outstanding Portfolio $401,550 $75,153,836
Number of loanDelinquent 0 14,150
Default Rate 0.00% 1.13%
Amount of Ended Loans Defaulted $0 $5,347,284
Amount of Ended Loans $0 $473,701,600
Number of Ended Loans Defaulted 0 16,817
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $536,853
Refund Rate 4.36% 0.77%
Amount of Refunded Loans $17,500 $4,537,625
Number of Refunded Loans 3 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 71.43% 74.18%
Average Loan Size $6,254 $418
Average Individual Loan Size $6,254 $655
Average Group Loan Size $0 $1,828
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $7,611 $3,430
Average Loan Size / GDP per capita (PPP) 82.18% 12.20%
Average Time to Fund a Loan 6.6 days 5.6 days
Average Dollars Raised Per Day Per Loan $948.20 $74.74
  Average Loan Term 114.71 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 8 295,934
  Journaling Rate 0.00% 42.37%
  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 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 5% APR 41.00% PY 33.27% PY
  Profitability (return on assets) 3.6% 1.1% -1.45%
  Average Loan Size (% of per capita income) N/A 8.00% 40.88%

Country Fast Facts

Field Partner Staff

Regla Brito
Misael Cabrera
Rosanna De La Cruz
Carmen Diaz
Rose Larsen
Modesto Lavandero
Violeta Saint-Hilaire
Mercedes Sanchez