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 — December 12, 2019

More than a year and a half since the political crisis began in Nicaragua, some stability has returned. Dialogue between the government and civil society has helped in partially resolving the crisis. However, while the government appears to consider the crisis to be over (they've suspended dialogue), many feel the root causes of the crisis remain unaddressed and protests continue. 

For MiCrédito, 2019 has brought renewed portfolio growth and a stabilizing of portfolio quality. Kiva will continue to support MiCrédito as they work with their borrowers to recover from the political crisis and subsequent economic downturn. The economy, while declining at almost 4% in 2018, according to the World Bank, has returned to growth, albeit slow, in 2019. Given the ongoing uncertainty, many banks and firms are taking a wait-and-see approach to lending and investment. The next presidential elections are scheduled for 2021.

Partner update — Jan 17, 2019

MiCrédito has expanded operations to Costa Rica, opening a branch office in San José. The branch will serve Nicaraguan economic migrants and refugees living in Costa Rica, as well as financially excluded Costa Ricans.

Status update — May 22, 2018

Protests have started in Nicaragua in late April against a since-canceled move to cut social security benefits and increase payroll taxes. People have taken to the streets in demonstrations that have called for President Ortega to step down. Unfortunately, these protests have resulted in the loss of life and a partial economic paralyzation of the country. Talks are currently on-going among all parties to resolve the situation peacefully. We have been in contact with our partners and are currently monitoring the situation closely as Kiva borrowers and partner staff have been affected by such political and social unrest. This might result in an increase in delinquency rates since a lot of informal economic activities have come to a complete stop. As more information comes in, we will update lenders accordingly.

Status update — July 18, 2016

Kiva recently re-assessed the level of risk associated with loans from this Field Partner. During this process, our analysts gathered updated operational and financial information about the institution, spoke with key members of the staff and analyzed the Field Partner’s loan products. As a result, MiCrédito's risk rating is now listed as 4 stars instead of 3 stars. The primary reasons for this change in rating are the organization's strong, sustainable growth and improved portfolio quality.

Partner description:

MiCrédito reaches underserved populations in both urban and rural Nicaragua. The organization strives to offer products tailored to meet client needs, and embraces new mobile technology to serve clients more efficiently and effectively. For example, loan officers equipped with smart phones are able to make credit decisions in the field, saving time and money for both clients and MiCrédito.  Find out more about MiCrédito by visiting their website.

A unique lending approach:

MiCrédito offers several types of loans that can have a positive impact on borrowers, their families and their communities.

Student loans:

Their student loan program, EduCrédit, covers the high costs of education in Nicaragua. The objective is to provide students with the opportunity to achieve their goals and find gainful employment through education. Learn more in this video>

Sanitation loans:

MiCrédito’s sanitation loans are designed to allow families to replace latrines, which can contaminate the surrounding environment, with high-efficiency toilets. 

This change can be transformative, improving family health and hygiene.

Clean energy loans:

Many rural communities in Nicaragua don’t have access to electricity. MiCrédito is now financing solar products for these off-the-grid communities, allowing them to substitute candles for solar lamps.

MiCrédito has partnered with Global Partnerships to provide solar home systems, which dramatically improve standards of living for the households served.

 

Other programs and services:

For people living at or below the poverty line, opening a savings account is a daunting and difficult process. Upon receiving a loan, MiCrédito opens a savings account on behalf of the borrower at Banco de América Central. The loan is disbursed to the savings account and the borrower is provided a debit card to access the funds. By providing access to the formal banking sector, MiCrédito aims to help borrowers increase their savings.

MiCrédito is also committed to improving the health and well being of its borrowers. In conjunction with the AMOS Foundation, MiCrédito offers clients access to preventative medicine and medical exams. This includes screenings for a variety of health conditions, including breast and cervical cancer, high-cholesterol and diabetes.  


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Dec 1, 2010 Oct 12, 2005
Total Loans $8,069,600 $1,422,600,850
Amount of raised Inactive loans $0 $1,266,900
Number of raised Inactive loans 0 176
Amount of Paying Back Loans $1,826,950 $154,215,550
Number of Paying Back Loans 1,765 196,542
Amount of Ended Loans $6,242,650 $1,267,118,400
Number of Ended Loans 8,332 1,638,281
Delinquency Rate 3.59% 26.22%
Amount in Arrears $50,455 $25,755,851
Outstanding Portfolio $1,181,181 $98,241,165
Number of Loans Delinquent 278 124,845
Default Rate 0.95% 1.76%
Amount of Ended Loans Defaulted $59,007 $22,282,384
Number of Ended Loans Defaulted 146 54,033
Currency Exchange Loss Rate 0.00% 0.39%
Amount of Currency Exchange Loss $0 $5,566,508
Refund Rate 0.17% 0.63%
Amount of Refunded Loans $13,750 $8,904,825
Number of Refunded Loans 16 8,424

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 63.94% 76.54%
Average Loan Size $799 $394
Average Individual Loan Size $799 $612
Average Group Loan Size $0 $1,763
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $4,800 $5,740
Average Loan Size / GDP per capita (PPP) 16.65% 6.87%
Average Time to Fund a Loan 10.72 days 7.2 days
Average Dollars Raised Per Day Per Loan $74.59 $54.76
  Average Loan Term 13.09 months 11.38 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,390 901,389
  Journaling Rate 35.56% 43.91%
  Average Number of Comments Per Journal 0.01 0.03
  Average Number of Recommendations Per Journal 0.00 0.71

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 38% PY 27.00% PY 25.79% PY
  Profitability (return on assets) 2.8% 0.9% -2.17%
  Average Loan Size (% of per capita income) 95.40% 40.00% 12.51%

Country Fast Facts

Field Partner Staff

Julissa Barrera
Axell Garcia
Axell Garcia (Temporal)
Axell Garcia (temporal)
Karen Gray
Veronica Herrera
Brian Jarquin
Grethel Junieth Meza Rivera
Lucia Sanchez
Flor de Maria Sanchez Lopez
Alexander Selva
Lyann Urbina Herrera
Oscar Zamora