Microfy is a not-for-profit organization in Israel that assists African asylum seekers and refugees living in Israel. The organization supports asylum seekers in entrepreneurship and business development.
 
Most of the refugees Microfy assists are from Sudan and Eritrea and faced religious and political persecution in their home countries. Disappearances of citizens and use of torture by the government was a common reality for many of these individuals. Others are survivors of the violent conflict in the Darfur region, where they faced ongoing violence and attacks by the government and armed militia groups.
 
Microfy works in many grey areas due to the legal status of asylum seekers in Israel. One risk lenders should be aware of is the risk of detention of asylum seekers by Israeli authorities.

A unique lending approach:
 
Microfy focuses its work in south Tel Aviv, where around 40,000 asylum seekers have settled. Due to their complicated legal status inside of Israel, asylum seekers cannot receive formal credit from banks or other Israeli microfinance institutions, as these organizations only loan to Israeli citizens.
 
To address the difficult circumstances asylum seekers face, Microfy offers business training, technical assistance/support, financial resources and small business start-up loans.
 
Because few organizations are willing to provide funding for loans to African asylum seekers, Microfy’s portfolio and growth has remained small. Kiva funding will enable Microfy to increase the number of asylum seekers they serve, as demand for loans far exceeds their capacity. 

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jul 10, 2014 Oct 12, 2005
Total Loans $10,325 $722,230,475
Amount of raised Inactive loans $0 $302,625
Number of raised Inactive loans 0 235
Amount of Paying Back Loans $4,450 $134,583,725
Number of Paying Back Loans 2 154,932
Amount of Ended Loans $5,875 $587,344,125
Number of Ended Loans 2 728,200
Delinquency Rate 63.46% 8.50%
Amount in Arrears $1,340 $7,457,003
Outstanding Portfolio $2,111 $87,722,453
Number of Loans Delinquent 2 28,812
Default Rate 35.15% 1.17%
Amount of Ended Loans Defaulted $2,065 $6,846,698
Amount of Ended Loans $5,875 $587,344,125
Number of Ended Loans Defaulted 1 19,789
Currency Exchange Loss Rate 0.93% 0.27%
Amount of Currency Exchange Loss $96 $1,945,073
Refund Rate 0.00% 0.68%
Amount of Refunded Loans $0 $4,905,575
Number of Refunded Loans 0 5,418

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 100.00% 74.41%
Average Loan Size $2,581 $416
Average Individual Loan Size $2,581 $653
Average Group Loan Size $0 $1,848
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $36,200 $5,937
Average Loan Size / GDP per capita (PPP) 7.13% 7.01%
Average Time to Fund a Loan 1.11 days 6.38 days
Average Dollars Raised Per Day Per Loan $2,316.66 $65.17
  Average Loan Term 9.5 months 10.78 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3 354,921
  Journaling Rate 100.00% 41.30%
  Average Number of Comments Per Journal 0.00 0.06
  Average Number of Recommendations Per Journal 0.00 1.56

Borrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 18% APR N/A 31.80% PY
  Profitability (return on assets) N/A N/A -1.81%
  Average Loan Size (% of per capita income) N/A N/A 19.39%

Country Fast Facts

Field Partner Staff

Shana Krakowski
Ilana Pinshaw