Status update - August 5, 2015:

Kiva and Transcapital have ended their partnership. Over the course of our 4.5 year partnership, Transcapital made $619,200 in loans and repaid those loans to Kiva lenders with a low default rate of 0.06%. We thank Transcapital for their collaboration and wish the organization the best as it continues to serve its clients in Mongolia.

Partner Description:

Transcapital was established in March 2001 as a privately-operated, non-bank financial institution (NBFI), meeting the regulatory criteria of the Bank of Mongolia and the Financial Commission of Mongolia.

Today, the institution has grown to be one of the leading microfinance NBFIs in the country with 12 branches serving mainly urban and semi-urban clients -- including a growing number of migrants in the capital city of Ulaanbaatar. As of May 2012, Transcapital offers 20 loan products and works with about 2,500 clients. Almost 68% of these clients are women, and about 60% live in ger districts -- settlements made up of houses and traditional Mongolian felt tents that lack basic infrastructure. 

Working with Kiva will enable Transcapital to make funding available to more borrowers. This is a core part of the organization's mission to be a comprehensive financial service provider and protect the wealth of customers, including those who are economically disadvantaged or who have typically lacked access to financial services. Transcapital will continue to innovate and maintain ethical practices and transparency to become a leading NBFI and satisfy the financial needs of all of its customers.

Kiva's flexible, zero-interest financing will allow Transcapital to invest its profits in social performance activities to alleviate poverty. Currently, the institution plans to open three new branches deep in the underserved ger districts around Ulaanbaatar. Also this year, it will further loosen its collateral requirements for Kiva borrowers to ensure that marginalized communities have access to the financial tools they need. 

Going forward, Transcapital will strive to give borrowers the highest level of customer service, and create new options for low-cost funding. At the same time, the institution will ensure that all savings accumulated by working with Kiva are used to benefit borrowers.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Dec 28, 2010 Oct 12, 2005
Total Loans $619,200 $1,608,688,920
Amount of raised Inactive loans $0 $647,750
Number of raised Inactive loans 0 706
Amount of Paying Back Loans $0 $165,151,500
Number of Paying Back Loans 0 202,585
Amount of Ended Loans $619,200 $1,442,889,670
Number of Ended Loans 410 1,907,536
Delinquency Rate 0.00% 17.24%
Amount in Arrears $0 $17,837,794
Outstanding Portfolio $0 $103,457,745
Number of Loans Delinquent 0 75,538
Default Rate 0.06% 1.71%
Amount of Ended Loans Defaulted $369 $24,702,368
Number of Ended Loans Defaulted 1 61,787
Currency Exchange Loss Rate 1.52% 0.40%
Amount of Currency Exchange Loss $9,410 $7,011,687
Refund Rate 1.70% 0.59%
Amount of Refunded Loans $10,525 $9,486,100
Number of Refunded Loans 10 8,846

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 64.21% 77.44%
Average Loan Size $1,441 $392
Average Individual Loan Size $1,473 $600
Average Group Loan Size $3,079 $1,805
Average number of borrowers per group 3.4 8
Average GDP per capita (PPP) in local country $5,900 $5,673
Average Loan Size / GDP per capita (PPP) 24.42% 6.91%
Average Time to Fund a Loan 8.17 days 8.07 days
Average Dollars Raised Per Day Per Loan $176.47 $48.58
  Average Loan Term 12.43 months 11.36 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 242 979,534
  Journaling Rate 46.10% 42.24%
  Average Number of Comments Per Journal 0.04 0.03
  Average Number of Recommendations Per Journal 0.03 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 38.00% PY 26.41% PY
  Profitability (return on assets) N/A 5.8% -0.56%
  Average Loan Size (% of per capita income) 58.70% 156.00% 11.35%

Country Fast Facts

Field Partner Staff

Jonathan Hiebert
Khongorzul Zorigt