Palestine for Credit & Development (FATEN)

Palestine

Last Updated April 3, 2013

Partner Description:

FATEN is a non-profit organization that provides micro- and small loans to economically-active entrepreneurs in Palestine. Originally founded as program of the Save the Children Federation, FATEN spun off and became completely independent in 1999.

Initially, FATEN served only women micro-entrepreneurs, but has grown to include men as well. Now it operates through 13 branches across the West Bank and Gaza. Its growing staff travels extensively to towns, villages and refugee camps throughout the regions surrounding its branch offices.

FATEN aims to expand financial access for marginalized communities. It also supports projects in new and existing economic sectors, as well as farmers who own land isolated by Israel’s separation wall. To ensure that people benefit from their loans, FATEN provides considerable follow-up services too.

Since its inception, FATEN has focused on social responsibility. This extends to humanitarian, developmental, environmental, educational and health initiatives, in addition to economic outreach for women and youth. 80% of the beneficiaries that have received loans from FATEN are women.

FATEN’s unique lending approach

FATEN’s credit products include group, environmental, small investor and housing improvement loans. The institution has also launched some products to target young people in Palestine. Student and computer loans help Palestinian youth to reach upper education levels and to obtain diplomas. This success qualifies them to access labor markets and to secure brighter futures for themselves and families. FATEN also conducts workshops to collect feedback from borrowers to be used in development of new loan products.

Repayment Performance on Kiva

	This Field Partner	All Kiva Partners
Start Date On Kiva	Jun 18, 2009	Oct 12, 2005
Total Loans	$4,102,875	$424,025,700
Amount of Raised Inactive Loans	$0	$240,475
Number Of Raised Inactive Loans	0	221
Amount of Paying Back Loans	$2,369,875	$92,071,175
Number Of Paying Back Loans	1,330	99,788
Amount of Ended Loans	$1,733,000	$331,714,050
Number Of Ended Loans	1,042	434,937
Delinquency Rate	2.75%	2.11%
Amount In Arrears	$38,363	$1,230,498
Outstanding Portfolio	$1,394,502	$58,360,650
Number of Loans Delinquent	438	9,862
Default Rate	0.34%	0.97%
Amount of Ended Loans Defaulted	$5,913	$3,220,059
Amount of Ended Loans	$1,733,000	$331,714,050
Number Of Ended Loans Defaulted	10	9,823
Currency Exchange Loss Rate	0.00%	0.02%
Amount of Currency Exchange Loss	$0	$77,435
Refund Rate	0.28%	0.96%
Amount of Refunded Loans	$11,350	$4,068,925
Number Of Refunded Loans	9	4,589

Loan Characteristics On Kiva

	This Field Partner	All Kiva Partners
Loans To Women Entrepreneurs	47.40%	74.04%
Average Loan Size	$1,728	$406
Average Individual Loan Size	$1,728	$645
Average Group Loan Size	$0	$1,742
Average Number Of Entrepreneurs Per Group	0	8
Average GDP Per Capita (PPP) in Local Country	$2,900	$3,346
Average Loan Size / GDP Per Capita (PPP)	59.58%	12.14%
Average Time To Fund A Loan	9.85 days	4.69 days
Average Dollars Raised Per Day Per Loan	$175.35	$86.65
Average Loan Term	20.75 months	9.61 months

Journaling Performance on Kiva

	This Field Partner	All Kiva Partners
Total Journals	102	202,871
Journaling Rate	8.09%	39.93%
Average Number Of Comments Per Journal	0.29	0.11
Average Number Of Recommendations Per Journal	0.42	2.73

Borrowing Cost Comparison (based on 2011 data)

	This Field Partner	Median for MFI Peers in Country	All Kiva Partners
Portfolio Yield	18.30%	27.10%	35.14%
Profitability (Return on Assets)	8.1%	5.8%	-0.41%
Average Loan Size (% of Per Capita Income)	129.30%	117.90%	46.81%

Country Fast Facts

Country:: Palestine
Capital:: N/A
Official Language:: Arabic
Population:: 4,013,126
Avg Annual Income:: $2,900
Labor Force:: Agriculture (17%), Industry (15%), Services (79%)
Population Below Poverty Line:: 20%
Literacy Rate:: 93%
Infant Mortality Rate (per 1000):: 60 deaths
Life Expectancy:: 65 years