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 - June 11, 2018

On June 3rd, Volcan Fuego in Guatemala erupted sending pyroclastic flows down its south-eastern slopes which engulfed several villages such as San Miguel de Los Lotes and El Rodeo. More than 100 people have lost their lives and more than 200 are still missing as search & rescue efforts are on-going amidst renewed volcanic activity emanating from Fuego. 4,000 people have also been evacuated. We have contacted our partners in Guatemala and both field staff and their families are safe. Our partners are in the process of contacting their clients to ascertain the gravity of the situation and initiate disaster relief activities. We will be in touch with our partners to assess how best we can help their borrowers recover in the event some of them have been affected. 

Partner Description:

ADICLA (Association for the Holistic Development of the Basin of Lake Atitlán) is a nonprofit rural community development association that provides small loans and services to improve quality of life in Sololá and Suchitepequez, two of the poorest regions of Guatemala and home to an indigenous majority. ADICLA was founded in 1993 by community leaders from the municipalities around the northern basin of Lake Atitlán in Sololá, Guatemala.

As a community organization, ADICLA’s staff includes many members of the Lake Atitlán community, and its board is entirely comprised of actual clients. This keeps loan services nimble and responsive to client needs. 

ADICLA’s loan program is called the Community Finance Program (PROFINCO is its acronym in Spanish). PROFINCO disburses and collects on small loans through three different lending methodologies: individual loans, solidarity group loans, and loans for larger groups of women. As part of a strategy to offer a diversified range of services, PROFINCO also provides the following services through a partnership with a local bank: check cashing, remittance payments, receipt of bank deposits, and phone and electric bill payments.

ADICLA also seeks to diversify its loan product offerings. With the help of Kiva’s 0% interest capital, it is launching several pilot programs. In particular, Kiva lenders will help fund three lending initiatives:

Loans for youth entrepreneurs: These loans allow young people without prior credit histories to borrow in groups, an opportunity that isn’t offered by many other microfinance institutions. The loans will be used to help them start small businesses.

Green loans: These loans will fund a number of environmentally friendly initiatives, such as the purchase and installation of solar panels, green community tourism projects, and reforestation, among other initiatives.

Down-market loans: These are smaller loans tailored to poorer borrowers. ADICLA plans to focus more on poverty alleviation by expanding a women’s village banking product and tracking borrower poverty indicators.

Vision:

To be the association that drives the holistic development of the department of Sololá by facilitating economic, social and environmental technical services, and assisting in community organizing processes to strengthen local economies with inclusion and equality, articulated in spaces and through participatory movements in favor of improving the living conditions of the target population and based on ethical principles and values. -- Provided by ADICLA

A note on ADICLA's portfolio yield:

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.

For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.

We seek to support loans that don’t impose an unjustifiable cost burden on hard-working borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale. With this partner, Kiva capital is supporting a loan product that costs less than the partner's typical products.

Factors that drive up the costs that this partner organization charges its borrowers include:

  • They provide very small loans. This leads to higher operating costs, since providing each individual loan presents a minimum per-unit cost.
  • They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.
  • They’re based in an area with a high cost of living and doing business. This is often due to the high demand and low supply of adequate housing and goods.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 29, 2012 Oct 12, 2005
Total Loans $5,639,500 $1,342,243,800
Amount of raised Inactive loans $0 $1,129,300
Number of raised Inactive loans 0 1,461
Amount of Paying Back Loans $572,975 $147,423,550
Number of Paying Back Loans 495 194,726
Amount of Ended Loans $5,066,525 $1,193,690,950
Number of Ended Loans 5,059 1,537,959
Delinquency Rate 3.18% 10.51%
Amount in Arrears $11,992 $9,735,701
Outstanding Portfolio $329,616 $92,639,883
Number of Loans Delinquent 34 57,667
Default Rate 1.38% 1.76%
Amount of Ended Loans Defaulted $70,080 $21,037,796
Number of Ended Loans Defaulted 201 51,424
Currency Exchange Loss Rate 0.00% 0.39%
Amount of Currency Exchange Loss $0 $5,195,382
Refund Rate 0.29% 0.59%
Amount of Refunded Loans $16,125 $7,939,025
Number of Refunded Loans 15 7,847

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 61.90% 76.42%
Average Loan Size $460 $394
Average Individual Loan Size $699 $609
Average Group Loan Size $1,467 $1,762
Average number of borrowers per group 3.9 7.7
Average GDP per capita (PPP) in local country $5,300 $5,773
Average Loan Size / GDP per capita (PPP) 8.68% 6.82%
Average Time to Fund a Loan 10.5 days 7.13 days
Average Dollars Raised Per Day Per Loan $43.81 $55.26
  Average Loan Term 13.95 months 11.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 2,099 796,440
  Journaling Rate 38.92% 43.15%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.80

Borrowing Cost Comparison (based on 2017 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 51% PY 31.00% PY 25.24% PY
  Profitability (return on assets) 1.79% 4.5% -1.43%
  Average Loan Size (% of per capita income) 36.20% 18.00% 12.96%

Country Fast Facts

Field Partner Staff

Graciela Chiyal Jiatz
Magdalena Cosiguá Meletz
Laura Florentina de Medalla
Anastasia Guarcas
Julio Eduardo Guarcax Antonio
Isidra Morales
Delmy Floridalma Morales Cuy
Floridalma Quiñonez
Francisca Suhul