FAPE
Guatemala
Last updated August 13, 2012
Partner Description:
FAPE, the Foundation for the Assistance of Small Businesses, is a nonprofit, socially-minded institution founded on November 29, 1984. The microcredit arm of FAPE was established on March 6, 1986 to achieve FAPE´s principle objective of providing small monetary loans to micro-entrepreneurs around Guatemala. FAPE has one central office in Guatemala City and serves over 3,300 clients.
FAPE´s vision is to be a leader in the Guatemalan microfinance sector while maintaining its core principles and values – providing attention to the entrepreneurs it serves through credit, technical assistance, business training and auxiliary services to improve its clients’ lives. Through its work and by the hand of God, FAPE hopes to see communities positively impacted and poverty alleviated in the areas it serves.
Mission
To stimulate the development of micro-entrepreneurs, small business owners and their communities through financial services, training, and Christian orientation – all provided with personalized attention.
Services
FAPE offers credit and financial services principally to women and to individuals below the poverty line, especially those who work in the agriculture, manufacturing, commerce and service industries. It also offers technical assistance and training in business management as a way of supporting the holistic development of the small business entrepreneur in Guatemala. FAPE also offers free medical services to its clients as well as insurance plans that cover debt balances, hospitalization costs and funerary services.
FAPE offers three principal loan products: Individual Loans, Solidarity Groups, and Village Banks, of which village banking is FAPE´s primary loan product, which serves the vast majority of its clients. FAPE operates in 26 towns in three departments around Guatemala City (Villa Nueva, Sacatepéquez, and Chimaltenango).
If you’d like to learn more about FAPE please watch this short video:
English
Spanish
Status Update - 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 FAPE's risk rating from 3 to 1.5 stars. The analysts have found that FAPE's risk variables, reviewed in the new risk rating model, were most representative of a 1.5-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.
FAPE has been informed of our analysts’ findings and their corresponding change in rating.
Status Update - January 14, 2010
Kiva became aware of FAPE’s high delinquency rate on Kiva a few months ago, when FAPE’s spike in delinquency was due to some problems FAPE had reporting repayments to Kiva. However, after those problems were resolved, FAPE’s delinquency rate on Kiva remained high due to the difficulty some Kiva entrepreneurs have experienced in repaying their loans as a result of the global economic crisis.
However, Kiva does not consider most of these loans to be “at risk” because, though they are delinquent, most are delinquent by less than 30 days. Typically, in microfinance, loans are only considered “at risk” if delinquent for more than 30 days.
Status Update - October 27, 2009
Kiva is aware of the high delinquency rate for FAPE. This has been caused by a reporting error, so the delinquency rate for FAPE is overstated. We are currently working with FAPE staff to resolve the problem. We apologize for the inconvenience.
Partner Description:
FAPE, the Foundation for the Assistance of Small Businesses, is a nonprofit, socially-minded institution founded on November 29, 1984. The microcredit arm of FAPE was established on March 6, 1986 to achieve FAPE´s principle objective of providing small monetary loans to micro-entrepreneurs around Guatemala. FAPE has one central office in Guatemala City and serves over 3,300 clients.
FAPE´s vision is to be a leader in the Guatemalan microfinance sector while maintaining its core principles and values – providing attention to the entrepreneurs it serves through credit, technical assistance, business training and auxiliary services to improve its clients’ lives. Through its work and by the hand of God, FAPE hopes to see communities positively impacted and poverty alleviated in the areas it serves.
Mission
To stimulate the development of micro-entrepreneurs, small business owners and their communities through financial services, training, and Christian orientation – all provided with personalized attention.
Services
FAPE offers credit and financial services principally to women and to individuals below the poverty line, especially those who work in the agriculture, manufacturing, commerce and service industries. It also offers technical assistance and training in business management as a way of supporting the holistic development of the small business entrepreneur in Guatemala. FAPE also offers free medical services to its clients as well as insurance plans that cover debt balances, hospitalization costs and funerary services.
FAPE offers three principal loan products: Individual Loans, Solidarity Groups, and Village Banks, of which village banking is FAPE´s primary loan product, which serves the vast majority of its clients. FAPE operates in 26 towns in three departments around Guatemala City (Villa Nueva, Sacatepéquez, and Chimaltenango).
If you’d like to learn more about FAPE please watch this short video:
English
Spanish
Status Update - 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 FAPE's risk rating from 3 to 1.5 stars. The analysts have found that FAPE's risk variables, reviewed in the new risk rating model, were most representative of a 1.5-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.
FAPE has been informed of our analysts’ findings and their corresponding change in rating.
Status Update - January 14, 2010
Kiva became aware of FAPE’s high delinquency rate on Kiva a few months ago, when FAPE’s spike in delinquency was due to some problems FAPE had reporting repayments to Kiva. However, after those problems were resolved, FAPE’s delinquency rate on Kiva remained high due to the difficulty some Kiva entrepreneurs have experienced in repaying their loans as a result of the global economic crisis.
However, Kiva does not consider most of these loans to be “at risk” because, though they are delinquent, most are delinquent by less than 30 days. Typically, in microfinance, loans are only considered “at risk” if delinquent for more than 30 days.
Status Update - October 27, 2009
Kiva is aware of the high delinquency rate for FAPE. This has been caused by a reporting error, so the delinquency rate for FAPE is overstated. We are currently working with FAPE staff to resolve the problem. We apologize for the inconvenience.
Repayment Performance on Kiva
Repayment Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Start Date On Kiva | Dec 10, 2007 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $1,166,375 | $426,651,775 | |
| Amount of Raised Inactive Loans | $0 | $238,975 | |
| Number Of Raised Inactive Loans | 0 | 213 | |
| Amount of Paying Back Loans | $286,150 | $94,149,725 | |
| Number Of Paying Back Loans | 375 | 101,646 | |
| Amount of Ended Loans | $880,225 | $332,263,075 | |
| Number Of Ended Loans | 1,069 | 435,701 | |
| Delinquency Rate | 7.61% | 1.91% | |
| Amount In Arrears | $12,306 | $1,156,960 | |
| Outstanding Portfolio | $161,736 | $60,497,022 | |
| Number of Loans Delinquent | 71 | 9,042 | |
| Default Rate | 2.22% | 0.97% | |
| Amount of Ended Loans Defaulted | $19,516 | $3,220,059 | |
| Amount of Ended Loans | $880,225 | $332,263,075 | |
| Number Of Ended Loans Defaulted | 53 | 9,823 | |
| Currency Exchange Loss Rate | 0.00% | 0.02% | |
| Amount of Currency Exchange Loss | $0 | $77,435 | |
| Refund Rate | 0.17% | 0.95% | |
| Amount of Refunded Loans | $1,925 | $4,068,925 | |
| Number Of Refunded Loans | 2 | 4,589 |
Loan Characteristics On Kiva
Loan Characteristics On Kiva| This Field Partner | All Kiva Partners | ||
| Loans To Women Entrepreneurs | 89.81% | 74.04% | |
|---|---|---|---|
| Average Loan Size | $490 | $407 | |
| Average Individual Loan Size | $871 | $646 | |
| Average Group Loan Size | $746 | $1,744 | |
| Average Number Of Entrepreneurs Per Group | 2.3 | 8 | |
| Average GDP Per Capita (PPP) in Local Country | $4,155 | $3,345 | |
| Average Loan Size / GDP Per Capita (PPP) | 11.79% | 12.17% | |
| Average Time To Fund A Loan | 3.21 days | 4.68 days | |
| Average Dollars Raised Per Day Per Loan | $152.75 | $86.95 | |
| Average Loan Term | 8.82 months | 9.61 months |
Journaling Performance on Kiva
Journaling Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Total Journals | 580 | 203,838 | |
|---|---|---|---|
| Journaling Rate | 48.55% | 40.00% | |
| Average Number Of Comments Per Journal | 0.11 | 0.11 | |
| Average Number Of Recommendations Per Journal | 4.00 | 2.72 |
Borrowing Cost Comparison (based on 2011 data)
Borrowing Cost Comparison (based on 2011 data)| This Field Partner | Median for MFI Peers in Country | All Kiva Partners | ||
| Portfolio Yield | 53.30% | 33.70% | 35.02% | |
|---|---|---|---|---|
| Profitability (Return on Assets) | -4.4% | 4.2% | -0.38% | |
| Average Loan Size (% of Per Capita Income) | 7.50% | 17.60% | 46.53% |
Country Fast Facts
Country Fast Facts- Country:
- Guatemala
- Capital:
- Guatemala City
- Official Language:
- Spanish
- Population:
- 12,800,000
- Avg Annual Income:
- $4,155
- Labor Force:
- agriculture: 50% industry: 15% services: 35%
- Population Below Poverty Line:
- 56.2%
- Literacy Rate:
- 70.6%
- Infant Mortality Rate (per 1000):
- 29.77 deaths
- Life Expectancy:
- 69 years
Field Partner Staff
Luis Gilberto Canton MeridaGloria Corona
Rebeca Garcia
Marco Antonio Hernandez
Jose Luis Hernandez Alvarado
Roel Alfonso Hernández Bail
Mabilia Joj Ojer
Manuel Garcia Marroquin
ceili salvatierra