Last updated April 10, 2014

Partner Description:

Instituto Peruano de Fomento Educativo, or Promotion of Education Peruvian Institute, is a non-profit organization that provides affordable credit facilities for students hoping to gain access to higher education. IPFE seeks to develop a new student loan product that targets low-income students seeking an education in the technical field.
With a constantly developing economy, Peru is in great need of competent and qualified technicians in the mining, agro-industry, and finance sectors. IPFE is dedicated to assisting low-income students secure a specific competency and ultimately a well-paying job in currently thriving technical industries.

A unique lending approach:
IPFE has successfully partnered with the technical institute SENATI to offer students the opportunity to enroll in technical courses. IPFE will offer loans of approximately $7,500 that cover tuition fees for five cycles (of 6 months) of studies in a technical program at SENATI. IPFE and SENATI have estimated that there are about 6,500 students in Lima, Peru who would benefit from a loan to finance their education. With Kiva’s support, IPFE will be able to fuel its student loan portfolio growth and launch a pilot program to fund students’ tuition fees for technical degrees. Students who are able to enroll in such technical courses have a high probability of securing a well-paid job after graduation.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Apr 7, 2014 Oct 12, 2005
Total Loans $295,250 $674,237,225
Amount of raised Inactive loans $0 $531,450
Number of raised Inactive loans 0 263
Amount of Paying Back Loans $293,575 $126,713,325
Number of Paying Back Loans 83 140,118
Amount of Ended Loans $1,675 $546,992,450
Number of Ended Loans 1 683,101
Delinquency Rate 0.00% 5.77%
Amount in Arrears $0 $4,713,369
Outstanding Portfolio $245,378 $81,667,558
Number of Loans Delinquent 0 16,578
Default Rate 0.00% 1.12%
Amount of Ended Loans Defaulted $0 $6,101,289
Amount of Ended Loans $1,675 $546,992,450
Number of Ended Loans Defaulted 0 18,778
Currency Exchange Loss Rate 0.01% 0.20%
Amount of Currency Exchange Loss $38 $1,320,899
Refund Rate 0.00% 0.70%
Amount of Refunded Loans $0 $4,721,250
Number of Refunded Loans 0 5,239

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 24.24% 74.23%
Average Loan Size $3,515 $417
Average Individual Loan Size $3,515 $656
Average Group Loan Size $0 $1,840
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $6,715 $3,385
Average Loan Size / GDP per capita (PPP) 52.34% 12.32%
Average Time to Fund a Loan 13.5 days 6.08 days
Average Dollars Raised Per Day Per Loan $260.30 $68.62
  Average Loan Term 46.2 months 10.65 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 10 333,429
  Journaling Rate 100.00% 41.63%
  Average Number of Comments Per Journal 0.00 0.07
  Average Number of Recommendations Per Journal 0.00 1.66

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 13% APR 29.00% PY 32.23% PY
  Profitability (return on assets) 4.3% 1.4% -1.90%
  Average Loan Size (% of per capita income) N/A 42.00% 19.55%

Country Fast Facts

Field Partner Staff

Carolina Boza
Percy Romero

Kiva Fellow(s)

Cassandra Salcedo