Status Update - August 21, 2014

Asasah continues to face serious operational and financial issues that threaten the organization's sustainability and has failed to meet its payment obligations to Kiva lenders since August of 2013. Asasah currently has about $570,000 in outstanding debt to Kiva lenders that is now considered delinquent. Kiva has worked with Asasah to try to recover these funds and has negotiated a new repayment plan for 20% of the outstanding balance over the next 12 months. Kiva will continue to pursue recovery of all outstanding funds, including payments due from this and any future repayment plans agreed upon with the partner, and will pass those funds on to lenders if and as they're received. We are also planning to send an analyst to do a thorough on-site monitoring visit before the end of 2014. Asasah has successfully repaid more than $6.3 million in Kiva loans and has been a Field Partner for more than 6 years.

Status Update - November 8, 2013

Since our previous update, Asasah has received the required approval from the State Bank of Pakistan to remit funds to Kiva on September 10, 2013. However, Kiva has been unable to recover funds owed to lenders from Asasah and in the interest of transparency, we wanted to update lenders on the situation. Asasah is facing serious operational and financial issues which have prevented it from immediately repaying all funds outstanding to Kiva lenders. Kiva is currently working with Asasah's management to work out a repayment plan. We will continue to reach out to Asasah with the goal of maximizing the recovery of lender funds and will keep lenders updated on our efforts.

Status Update - September 5, 2013

You may have noticed that Asasah's delinquency rate is higher than usual. This is the result of difficulties in transferring funds out of Pakistan due to a bi-annual approval Asasah needs to obtain from the State Bank of Pakistan in order to work with Kiva. While the organization is working with the State Bank of Pakistan to resolve the issue, please be advised that this is unrelated to borrowers repaying their loans on time. Asasah is sending regular updates to Kiva, and we will keep all lenders posted as we learn more. As soon as funds are received, they will be applied to delinquent loans.

Partner Description:

Asasah is one of the fastest growing microfinance institutions in Pakistan, working to provide financial services to micro-entrepreneurs and their families. The organization’s objective is to enhance micro-productivity and eradicate poverty.

Asasah employs group lending methodology and believes that female empowerment is a powerful catalyst for positive social change. For this reason, 100% of Asasah's clients are women.

The organization’s approach to microfinance provides women with the flexibility to invest in their own businesses or family businesses. By doing so, Asasah makes women the primary point of contact for delivery of financial services, which elevates their position in their households and communities.

Since its inception in 2003, Asasah has been providing clients and their families with credit, savings and insurance products. As of June 2011, Asasah had 18,941 clients, 22 branches and 199 staff members. It presently operates in the Punjab province of Pakistan.

After a six-month pilot phase, Asasah now provides mandatory health insurance to all of its clients in addition to
 the mandatory credit life insurance facility that has been offered to clients since the beginning. Through these insurance initiatives, all clients and their spouses receive health coverage and funeral charges for a premium. Health workshops are also held every quarter, and awareness sessions on a regular basis to help clients stay healthy and productive.

In 2011, Asasah launched two loan products that comply with Shariah lending principles. Islamic Law prohibits the charging of interest. Accordingly, the organization launched asset-based loans and interest-free loans. While they fall into the category of Islamic microfinance, they are not restricted to Muslims. You can learn more about Kiva’s approach to Islamic microfinance here.

Asasah has also implemented branchless microfinance through all of its existing branches spanning from Lahore to Multan, including Faisalabad and Gujranwala. Now all clients can obtain credit with ATM cards, and repayments can be made through EasyPaisa, mobile money transfer shops. By offering these options, Asasah has become the first microfinance institution in Pakistan to serve its clients through a branchless banking system.


Asasah has achieved the following milestones as a leading microfinance institution in Pakistan:

- First Microfinance institution in Pakistan to start operations with commercial funding.

- First Microfinance institution in Pakistan to conduct an internal assessment of achievement of its social performance system & use for further refinement.

- Won Gold 2010 MIX/CGAP Social Performance Reporting Award.

- Won 2009 Silver Award for social performance reporting from MIX. The award is designed to promote greater transparency in microfinance.

- Got social rating by Microfinanza in 2010.

Asasah has become the first PPI-certified microfinance institution in Pakistan. The Progress out of Poverty Index (PPI) is a poverty targeting tool. Asasah has been using it to target products and services to poor households. After a thorough assessment of Asasah's implementation of the PPI, Grameen Foundation has granted it certification. In South Asia, Asasah is the fifth organization to be PPI certified.

You can learn more about Asasah on its website.


Status Update - January 20, 2012

As a follow up to the update of January 6, 2011, Asasah has been granted approval by the State Bank of Pakistan to remit funds to Kiva without delay.  This approval extends to February 2013, and is in response to the proposal presented by Asasah and Kiva to the State Bank of Pakistan, mentioned in the previous update.  As this approval is an exception provided by the State Bank of Pakistan, and expires in March 2013, Kiva and Asasah will need to again petition for a further extension at that time.  Until then, Kiva does not expect any future delays in receiving funds from Asasah.

Status Update - January 6, 2011

In 2009, Asasah worked with the State Bank of Pakistan to resolve regulatory challenges that caused a delay in repayments to Kiva lenders. On November 25th, 2009, Asasah obtained authorization from the State Bank of Pakistan to send repayments to Kiva lenders on outstanding funds.

During the final two quarters of 2010, Asasah and Kiva worked together to propose a structure to the State Bank of Pakistan to govern new funds sent into, and remitted from, Pakistan. Asasah presented this structure to the State Bank of Pakistan and received approval, dated November 2, 2010, to obtain and remit USD loan funds from Kiva. Under the approval, Kiva has permission to send funds to Asasah through February 2011 (though funds may be remitted to Kiva after that date). Kiva and Asasah are currently working on a proposal to extend the approval, which will be submitted to the State Bank of Pakistan. Updates on this and any other relevant items will be posted to the partner page.

Status Update - May 20, 2010

Please note this Field Partner is "atypical" among Kiva's partner base as they have not been visited by any members of Kiva's staff. Because of on-going security concerns, due diligence and monitoring have been conducted remotely. This partner does, however, meet all of the minimum criteria for partnership with Kiva.

Status Update - March 11, 2010

Kiva has received a remittance from Asasah of $118,210 covering repayments collected from Kiva borrowers. As noted in the February 17, 2010 update, Asasah received a special dispensation from the State Bank of Pakistan to remit outstanding funds from Kiva and the remittance of $118,210 was governed by this.

Kiva has allowed Asasah to begin fundraising on Kiva’s website subject to specific limitations on the amount that can be raised. While Kiva remains encouraged by the letter from the State Bank of Pakistan governing repatriation of funds to Kiva, lenders should be aware that some risk of indefinite delay in receiving repayments from Pakistan remains. Kiva continues to work with Asasah to establish a stronger, long term structure for funding. Any new updates will continue to be posted to the partner page

Status Update - February 17, 2010

Since our previous update, Asasah has been working with the State Bank of Pakistan to resolve the regulatory challenges that caused a delay in repayments to Kiva lenders. In November 2009, Asasah obtained special authorization to send the payment that was due to Kiva lenders for that month, and Asasah has further obtained authorization to repay all funds outstanding as of November 25th, 2009. In the coming weeks, we expect to receive funds that have been repaid by entrepreneurs working with Asasah.

Though the State Bank of Pakistan has approved repayments to Kiva lenders for loans with outstanding repayments as of November 25th, 2009, it has come to Kiva’s attention that, due to the unique nature of Kiva’s model, future repayments to Kiva lenders could be subject to a case-by-case review by the State Bank of Pakistan. We want to make all Kiva lenders who are considering lending to entrepreneurs working with Asasah aware that, by lending to these entrepreneurs, they are taking on the additional risk that there may be an indefinite delay in repayments. Kiva will continue to work with Asasah on behalf of Kiva lenders to resolve any repayment issues should they arise

Status Update - September 16, 2009

Asasah’s current high delinquency is the result of difficulties in transferring funds out of Pakistan. The organization is working with the State Bank of Pakistan to sort out this issue and is providing regular updates to Kiva on its progress. Kiva will be sure to update this page as we learn more, and all funds received from Asasah will be applied to delinquent loans upon receipt.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 2, 2007 Oct 12, 2005
Total Loans $6,896,850 $586,255,450
Amount of raised Inactive loans $0 $599,025
Number of raised Inactive loans 0 533
Amount of Paying Back Loans $1,193,650 $119,653,275
Number of Paying Back Loans 800 126,432
Amount of Ended Loans $5,703,200 $466,003,150
Number of Ended Loans 6,044 592,740
Delinquency Rate 99.82% 3.40%
Amount in Arrears $570,799 $2,667,913
Outstanding Portfolio $571,816 $78,383,347
Number of loanDelinquent 800 10,426
Default Rate 0.13% 1.15%
Amount of Ended Loans Defaulted $7,547 $5,337,667
Amount of Ended Loans $5,703,200 $466,003,150
Number of Ended Loans Defaulted 18 16,806
Currency Exchange Loss Rate 0.01% 0.08%
Amount of Currency Exchange Loss $654 $480,684
Refund Rate 0.02% 0.77%
Amount of Refunded Loans $1,175 $4,495,225
Number of Refunded Loans 2 5,039

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 99.97% 74.17%
Average Loan Size $216 $418
Average Individual Loan Size $429 $656
Average Group Loan Size $1,099 $1,827
Average number of borrowers per group 5.3 8
Average GDP per capita (PPP) in local country $3,004 $3,432
Average Loan Size / GDP per capita (PPP) 7.18% 12.19%
Average Time to Fund a Loan 4.77 days 5.58 days
Average Dollars Raised Per Day Per Loan $45.20 $75.03
  Average Loan Term 10.58 months 10.3 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,060 292,639
  Journaling Rate 37.55% 42.38%
  Average Number of Comments Per Journal 0.04 0.08
  Average Number of Recommendations Per Journal 2.39 1.89

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 17% PY 33.00% PY 33.64% PY
  Profitability (return on assets) -23.8% 1.5% -1.40%
  Average Loan Size (% of per capita income) 9.56% 16.00% 41.35%

Country Fast Facts

Field Partner Staff

zareen aamir
Tabinda Jaffery
bazgha masood
aamir shabbir