Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status update — April 5, 2016

Kiva staff met with the Peruvian regulator to get an update on the liquidation process of our former partner Caja Rural Señor de Luren. The regulator is now in the process of liquidating the remaining fixed assets of the organization, a process which, according to their best estimates, should take between a few months and a year. Given the number of creditors, it’s unfortunately highly unlikely that Kiva will be able to recover additional payments. We will however keep lenders informed as the liquidation process concludes and we have additional information to share. 

Status update — February 22, 2016

The Peruvian regulator has made a partial payment to Kiva on behalf of the liquidated partner, Caja Rural Señor de Luren, and this amount has been settled back to Kiva lenders on a pro-rata basis. This payment confirms that Kiva has been recognized as a creditor by the Peruvian regulator and we hope to receive additional payments as proceeds of liquidated assets. As per the last update, we have no concrete timeline for when this might take place, but will share more information as it becomes available. 

Status update — January 12, 2016

Following up on Caja Rural Señor de Luren’s takeover and subsequent liquidation, Kiva has contacted the Peruvian regulator to try and recover all outstanding payments due to Kiva lenders. The process of liquidating a financial institution in Peru can take a long time, and as of now we do not have a concrete timeline for when this might take place or any update on the likelihood of recovery. The Kiva team will continue to pursue all efforts in this process and will share more information with lenders as it becomes available. 

Status update — July 9, 2015

On June 18, 2015, Caja Rural Señor de Luren was taken over by the SBS, the Peruvian regulator, as the institution's portfolio quality was deteriorating. Caja Rural Señor de Luren's customer deposits were transferred over to CMAC Arequipa, one of the largest microfinance institutions in Peru and the SBS is currently proceeding to liquidate the rest of Caja Rural Señor de Luren. As a result, Kiva has chosen to pause this partner. Kiva is actively monitoring the situation and is in contact with the regulator with the goal of recovering funds still owed to Kiva lenders and will share additional information with lenders as it becomes available. 

Partner Description: 
Caja Rural Señor de Luren is a microfinance institution based in Ica in southern Peru that primarily promotes the development of the country’s agricultural sector through micro-lending. Founded in 1994, the organization diversified to offer microenterprise, consumer and home loans in 2003. By September 2011, it grew to serve over 55,000 borrowers through 41 offices with a loan portfolio of approximately US$184 million.

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Today, Caja Luren provides three major financial products to its clients:
• Micro-credit
• Micro-savings
• Micro-insurance

In 2007, an earthquake devastated the Ica area and weakened the local economy. Caja Luren played an instrumental role in helping residents rebuild their lives, homes and businesses. Immediately following the earthquake, the institution offered 6 month grace periods to a large portion of its affected portfolio in order to aid recovery.

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To reduce its operating expenses, Caja Luren partnered with Peru’s National Bank to share its offices and certain resources. This helped expand micro-credit access to some of the poorest and most remote regions of Peru. Today, this partnership has grown to the point where more than half of Caja Luren’s offices work with the National Bank in some capacity.

Caja Luren is a regulated financial institution and reports on a monthly basis to the Peruvian Superintendent of Banks. It adheres to official standards of financial reporting and is audited annually. It has also developed risk managament and internal audit departments to make sure that credit is going to deserving borrowers and being used effectively.

The institution uses Kiva lenders’ funding to expand its operations to support new clients. Many of these people are still recovering from the earthquake nearly six years later. The focus is to provide capital that encourages business growth and housing repair in rural areas around Ica.

Images courtesy of Caja Luren.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Oct 22, 2009 Oct 12, 2005
Total Loans $3,570,375 $874,960,175
Amount of raised Inactive loans $0 $710,400
Number of raised Inactive loans 0 536
Amount of Paying Back Loans $420,450 $136,648,425
Number of Paying Back Loans 713 167,060
Amount of Ended Loans $3,149,925 $737,601,350
Number of Ended Loans 5,205 916,439
Delinquency Rate 99.34% 8.46%
Amount in Arrears $115,613 $7,476,165
Outstanding Portfolio $116,377 $88,321,485
Number of Loans Delinquent 713 22,435
Default Rate 7.66% 1.32%
Amount of Ended Loans Defaulted $241,154 $9,707,641
Number of Ended Loans Defaulted 626 27,160
Currency Exchange Loss Rate 0.15% 0.44%
Amount of Currency Exchange Loss $5,361 $3,823,595
Refund Rate 0.77% 0.65%
Amount of Refunded Loans $27,350 $5,700,625
Number of Refunded Loans 47 5,834

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 48.48% 74.90%
Average Loan Size $603 $407
Average Individual Loan Size $603 $640
Average Group Loan Size $450 $1,805
Average number of borrowers per group 2 7.8
Average GDP per capita (PPP) in local country $12,000 $5,934
Average Loan Size / GDP per capita (PPP) 5.02% 6.86%
Average Time to Fund a Loan 10.46 days 6.92 days
Average Dollars Raised Per Day Per Loan $57.62 $58.85
  Average Loan Term 11.23 months 11.06 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,076 447,522
  Journaling Rate 49.11% 41.57%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.01 1.27

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 20% PY 29.00% PY 26.87% PY
  Profitability (return on assets) N/A 1.4% -0.78%
  Average Loan Size (% of per capita income) 83.40% 42.00% 18.82%

Country Fast Facts

Field Partner Staff

Guibell Carlevaro
Karla Carlos Angulo
Bárbara Fernandez
Ines Roxana Paucar Soto