September 11, 2011
 
As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.
 
During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 
 
The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise FINCA Peru's risk rating from 5 to 3.5 stars. The analysts have found that FINCA Peru's risk variables, reviewed in the new risk rating model, were most representative of a 3.5-Star rating.
 
We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.
 
FINCA Peru has been informed of our analysts’ findings and their corresponding change in rating.
 

Original Partner Description


FINCA Peru's Mission is to contribute to the empowerment of social and economically disadvantaged women in Peru. By facilitating the integral development of human capacities, FINCA Peru promotes the development of the entrepreneurial spirit within each of its clients. Its mission is to strengthen the social discipline of women through the daily practice of positive values such as equity, solidarity, respect, responsibility and honesty.


FINCA Peru primarily serves women, specifically focusing on mothers who run small businesses and have the will to form mutually-supportive groups such as the village banks. By focusing on women, FINCA Peru operates with the understanding that women who are able to achieve a higher level of income will be able to pass along their earnings directly to all members of their families.

The three fundamental pillars of FINCA Peru's village banks are:

  • Training
  • Credit
  • Savings.
  • On the basis of these three components, all activity is developed through group meetings of 20 to 30 women that take place weekly or every two weeks. These groups have their meetings in order to receive training and to carry out their loan and savings. Our dedication to the integral development of the capacities of our clients has led to produce a financial service with a training program for business development.

    FINCA Peru has also recently launched an export business to promote the beautiful products made by the women they serve. You can learn more about this business here: FINCA Peru Exports


Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jul 23, 2007 Oct 12, 2005
Total Loans $4,278,300 $280,866,475
Amount of Raised Inactive Loans $0 $8,475
Number Of Raised Inactive Loans 0 16
Amount of Paying Back Loans $221,275 $76,717,975
Number Of Paying Back Loans 235 92,492
Amount of Ended Loans $4,057,025 $204,140,025
Number Of Ended Loans 5,294 280,128
Delinquency Rate 0.00% 2.44%
Amount In Arrears $0 $1,253,784
Outstanding Portfolio $151,742 $51,303,862
Number of Loans Delinquent 0 11,530
Default Rate 0.00% 1.12%
Amount of Ended Loans Defaulted $0 $2,280,201
Amount of Ended Loans $4,057,025 $204,140,025
Number Of Ended Loans Defaulted 0 6,779
Currency Exchange Loss Rate 0.00% 0.00%
Amount of Currency Exchange Loss $0 $12,824
Refund Rate 0.12% 1.25%
Amount of Refunded Loans $5,200 $3,520,925
Number Of Refunded Loans 11 4,156

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 96.19% 74.89%
Average Loan Size $307 $389
Average Individual Loan Size $534 $618
Average Group Loan Size $1,857 $1,631
Average Number Of Entrepreneurs Per Group 9.4 8
Average GDP Per Capita (PPP) in Local Country $6,715 $3,403
Average Loan Size / GDP Per Capita (PPP) 4.57% 11.42%
Average Time To Fund A Loan 1.88 days 3.96 days
Average Dollars Raised Per Day Per Loan $163.09 $98.13
  Average Loan Term 4.15 months 9.26 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,592 131,523
  Journaling Rate 65.25% 39.37%
  Average Number Of Comments Per Journal 0.09 0.16
  Average Number Of Recommendations Per Journal 3.79 4.21

Kiva HelpBorrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Average Interest Rate and Fees Borrowers Pay (Portfolio Yield) 57.80% 45.10% 36.11%
  Average Partner Return On Assets (Average Profitability) 9.6% 4.1% -1.45%
  Average Loan Size (% of Per Capita Income) 5.66% 29.80% 43.69%

Kiva HelpCountry Fast Facts

Field Partner Staff

Region Ayacucho
Vanessa Cruz
Iris Lanao Flores
Erika Neilson
José Ramón
Viviana Salinas Lanao
Patricia Zamudio Núñez