Status Update - August 21, 2012

Kiva and AREGAK Universal Credit Organization have agreed to end their partnership. The microfinance institution is making its final repayments to Kiva this month, and funds will be settled out to lenders' accounts in mid-September. 

We thank AREGAK for partnering with us for over two years, and for reliably administering loans to low-income communities in Armenia.

Status Update - May 29, 2012

Aregak has decided to close its partnership with Kiva following a review of external funding sources. Since the relationship began in May 2010, Aregak has successfully paid back $174,650 in loans. It still has $122,175 in outstanding loans, which will be paid back to lenders as borrowers repay. We thank Aregak and the Kiva community for raising $296,825 to support borrowers in Armenia.

Partner Description:

Welcome to AREGAK UCO's partner profile. We are excited to be on Kiva and about your interest in lending to our clients. We believe that partnering with Kiva will help bring added capital to the Armenian economy as well as increase visibility of Armenia's economic environment through our lender profiles and journal updates. We can use your help and are excited you have chosen to find out more about AREGAK's clients. About Us

AREGAK UCO is a Closed Joint-Stock Company, incorporated in 2006, and regulated by the Central Bank of Armenia. AREGAK UCO was founded by United Methodist Committee on Relief (UMCOR), which currently is the sole shareholder of the company. The organization is involved in microfinance and provides micro-loans employing group liability lending methodology, individual business and consumption loans and a modified version of the group micro-loan, as well as other loans for the purchase of agricultural equipment in Armenia and Nagorno Karabakh.


AREGAK UCO supports the economic empowerment and improvement of living standards of low income families, small and medium entrepreneurs through provision of high quality, accessible and sustainable financial services.


Our goal is to be the most dynamic, socially responsive financial company in Armenia, delivering a wide product range across a large network to create exceptional convenience and value for our customers. Bring more light into your life. This is the way we work.

Goals and Objectives
- Increase Armenians access to financial services
- Ensure 90% of active clients have group guaranteed credits
- Ensure group average loan amount is within the range up to 50% of the GDP per capita in RA
- Maintain a client retention rate of 65%


Increasing Shareholder value with consistent earnings thereby ensuring AREGAK UCO's long term sustainability while diversifying our risk.

Team Members

Utilizing our team members to their full capacity while developing rewarding career opportunities with targets to
- Maintain staff retention rate at 90% and higher
- Engaging employees in a performance based profit sharing plan


In the fall of 1997, United Methodist Committee on Relief (UMCOR) established the AREGAK microfinance program, with the purpose to create economic opportunities for low income people who have no or limited access to the formal financial sources, especially in the remote rural areas. The microfinance program rapidly became the largest MFI in Armenia in terms of number of active clients.

In March of 2006, AREGAK UCO was registered as a Universal Credit Organization, structured as a Closed Joint Stock Company with UMCOR as the sole shareholder.

Today, AREGAK UCO provides a broad range of financial services to the population without compromising the social aspects of its mission and continues initiatives geared toward the fulfillment of its social goals.

Quick Facts

Currently, AREGAK UCO is the only credit organization in Armenia which has a country-wide branch network throughout Armenia and Nagorno Karabakh.

- 202 employees
- 26,709 clients
- 689 communities served
- 26 branches

Please visit our web site for more information.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 10, 2010 Oct 12, 2005
Total Loans $298,450 $1,606,044,595
Amount of raised Inactive loans $0 $343,050
Number of raised Inactive loans 0 389
Amount of Paying Back Loans $0 $163,624,250
Number of Paying Back Loans 0 199,854
Amount of Ended Loans $298,450 $1,442,077,295
Number of Ended Loans 191 1,906,880
Delinquency Rate 0.00% 16.26%
Amount in Arrears $0 $16,550,633
Outstanding Portfolio $0 $101,788,297
Number of Loans Delinquent 0 49,658
Default Rate 0.00% 1.71%
Amount of Ended Loans Defaulted $0 $24,614,777
Number of Ended Loans Defaulted 0 61,388
Currency Exchange Loss Rate 0.00% 0.40%
Amount of Currency Exchange Loss $0 $7,011,572
Refund Rate 0.00% 0.59%
Amount of Refunded Loans $0 $9,477,100
Number of Refunded Loans 0 8,839

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 70.50% 77.44%
Average Loan Size $1,563 $392
Average Individual Loan Size $1,563 $600
Average Group Loan Size $0 $1,806
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $6,300 $5,675
Average Loan Size / GDP per capita (PPP) 24.80% 6.91%
Average Time to Fund a Loan 5.75 days 8.07 days
Average Dollars Raised Per Day Per Loan $271.97 $48.58
  Average Loan Term 14.62 months 11.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 47 977,859
  Journaling Rate 24.08% 42.27%
  Average Number of Comments Per Journal 0.09 0.03
  Average Number of Recommendations Per Journal 0.11 0.67

Borrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower N/A 23.00% PY 26.56% PY
  Profitability (return on assets) N/A 3.1% -0.53%
  Average Loan Size (% of per capita income) 26.18% 35.00% 11.35%

Country Fast Facts

Field Partner Staff