May 15, 2014

Microfinanzas Prisma is currently experiencing institutional liquidity problems and has been unable to repay Kiva lenders in full the amount owed in repayments made by Kiva borrowers. Kiva and Prisma maintain close communication, and the organization is committed to fully repaying lenders over an extended period of time. Kiva is following up regularly and will provide additional information as it becomes available. 


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 Microfinanzas Prisma's risk rating from 5 to 4 stars. The analysts have found that Microfinanzas Prisma's risk variables, reviewed in the new risk rating model, were most representative of a 4-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.
 
Microfinanzas Prisma has been informed of our analysts’ findings and their corresponding change in rating.


Original Partner Description

PRISMA is a Peruvian non-governmental organization founded in April of 1986 with the purpose of strengthening the capabilities and opportunities of the nation’s poor and vulnerable by giving them the tools for sustainable social and economic development.


To accomplish this goal, we have developed seven interconnected strategies: Microfinance, Health and Nutrition, Production and Commercialization for Agricultural Development, Environment, Investigation and Medical Research, Logistics, and Strengthening of both local and regional government institutions.

In 1994, PRISMA began a new program of offering credit to individuals as a component of PASA, a program that works to secure nutrition, by which they assisted the extremely impoverished populations between 1994-1997 in the districts of Cajamarca, San Martín, Ancash, Ayacucho, Junín, Puno, Piura and Lima.

Moreover, beginning in 1997, PRISMA began using the Village Banking methodology, which extended credit capabilities into the regions of Ayacucho, Cajamarca, Junín, Huánuco, Huancavelica, Ancash, Ucayali, Puno, San Martin, Piura and Lima to meet the needs of microentrepreneurs in rural communities on the basis of shared guaranteed loans. This later resulted in a new credit option for lenders called Solidarity Groups as a graduation strategy.

As of the year 2000, PRISMA has advanced credit products for individuals, implementing Multicredit and Crediacopio for Alterative Development Areas. Through this mode of credit, small agricultural producers and traders obtain credit according to their qualifications in order to finance productive activities or to provide capital during the storage phase following harvest.

Starting in 2002, PRISMA incorporated an additional credit option designed for financing production chains with risk administration, which ultimately enables individual farmers to improve their production and productivity levels. This credit product has been particularly successfully supporting the expansion of rice, cotton and yellow corn in the district of Piura.

In 2004, PRISM combined their credit products under PRISMA Microfinance Department, providing lenders greater access to the most viable products. PRISMA continues to expand its products and services and in 2006 it began offering education directed toward the needs of clients to improve the quality of their business and their lives.

PRISMA has strategic alliances with other quality organizations including FOLADE, Freedom From Hunger, MCE, ETIMOS, Procampo S.A., ECLOF, OIKOCREDIT, CORPORACIÓN MISTI, Cooperativa Fortalecer, Banco de Crédito del Perú, Agrovet 3V SAC, Procampo S.A., USAID, Bayer, IPA, COPEME, Creditex, ICCO, INAFI – LA, PROPOLI, EDPYME Confianza, & PROMUC.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jul 18, 2007 Oct 12, 2005
Total Loans $11,819,825 $583,662,125
Amount of raised Inactive loans $0 $459,200
Number of raised Inactive loans 0 425
Amount of Paying Back Loans $545,750 $117,659,300
Number of Paying Back Loans 856 123,971
Amount of Ended Loans $11,274,075 $465,543,625
Number of Ended Loans 19,986 592,192
Delinquency Rate 74.51% 3.69%
Amount in Arrears $248,242 $2,830,722
Outstanding Portfolio $333,179 $76,636,170
Number of loanDelinquent 856 11,226
Default Rate 0.65% 1.15%
Amount of Ended Loans Defaulted $73,038 $5,333,846
Amount of Ended Loans $11,274,075 $465,543,625
Number of Ended Loans Defaulted 208 16,794
Currency Exchange Loss Rate 0.00% 0.08%
Amount of Currency Exchange Loss $17 $480,684
Refund Rate 0.25% 0.77%
Amount of Refunded Loans $29,600 $4,494,250
Number of Refunded Loans 50 5,038

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 77.15% 74.17%
Average Loan Size $567 $418
Average Individual Loan Size $567 $656
Average Group Loan Size $0 $1,827
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $6,715 $3,433
Average Loan Size / GDP per capita (PPP) 8.45% 12.19%
Average Time to Fund a Loan 3.46 days 5.56 days
Average Dollars Raised Per Day Per Loan $163.86 $75.25
  Average Loan Term 6.79 months 10.29 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 9,901 291,612
  Journaling Rate 45.11% 42.35%
  Average Number of Comments Per Journal 0.04 0.08
  Average Number of Recommendations Per Journal 2.44 1.90

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 38% PY 29.00% PY 33.64% PY
  Profitability (return on assets) -10.1% 1.4% -1.40%
  Average Loan Size (% of per capita income) 11.10% 42.00% 41.35%

Country Fast Facts

Field Partner Staff

Betsabé Bruno Morales
Mariela Bustios
Johnny Castillo Gutierrez
Diego Fernández-Concha
Luis Garcia Bedregal
Jeff Nelson
Miguel Angel Salas Alcantara
Katherine Saldana Reategui
Jacinto Suarez Castro
Walter Tanta Huamaccto