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

Partner Description:

Jerusalem Interest - Free Microfinance Fund (JIMF) is a charitable organization that provides loans and business development training to entrepreneurs and small business owners in Jerusalem.

Founded in 2008 by Jewish and Muslim Londoners, the organization aims to relieve financial hardship in poor communities in Jerusalem by helping people establish and to grow their own businesses. In the process, it seeks to mitigate inter-communal tensions in Jerusalem.

The overall poverty rate in the city is close to 40%, and two of its communities are particularly disadvantaged -- the ultra-orthodox Jewish (Charedi) community and the Arab community. Together they comprise about two-thirds of Jerusalem’s population and have the highest levels of poverty. Additionally, there is little or no access to microfinance for these groups, often making it very difficult for would-be entrepreneurs to obtain start-up financing.

Before providing a loan, JIMF generally requires clients to undergo 60 hours of training in business development and “soft” skills like negotiation and networking. Through microfinance and technical assistance, JIMF helps people in poor communities in Jerusalem become successful business owners.

Kiva loans will enable marginalized low-income clients in Jerusalem to take advantage of JIMF’s training support and to start or to grow their own businesses. In addition, these loans help to foster cross-cultural understanding and peaceful interactions between diverse groups.

A unique lending approach

To comply with Sharia and Halacha laws, JIMF does not charge interest on its loans and earns no income from them. Almost all JIMF’s staff works for the organization on volunteer basis. Currently the JIMF is 100% financed from charitable donations.

For each loan, JIMF provides comprehensive technical assistance through its partnership with training organisations. For example, a group of 15 women may receive 56 hours of group training workshops, 5 hours of one-on-one pre-loan mentoring, direct support for writing a business plan, interest free loans for qualifying participants, and 10 hours of one-on-one post-loan consultations.

JIMF is able to keep defaults low through business training, rigorous screening of business proposals, and through constructive relationships with clients. It is also the only microfinance organization (as far as it knows) that works with people in Jerusalem who lack Israeli citizenship.

JIMF has made loans to groups of women each year for the past three years. So far, this financing has been used to support a diverse range of businesses including a falafel store, a sewing business, a wedding dress shop, a jewelry shop, an advertising agency, a fitness center and more.

Jerusalem Interest - free Microfinance Fund joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jan 30, 2013 Oct 12, 2005
Total Loans $106,500 $950,795,575
Amount of raised Inactive loans $0 $326,700
Number of raised Inactive loans 0 238
Amount of Paying Back Loans $85,925 $143,657,400
Number of Paying Back Loans 20 177,403
Amount of Ended Loans $20,575 $806,811,475
Number of Ended Loans 5 1,011,869
Delinquency Rate 1.81% 7.81%
Amount in Arrears $899 $7,339,006
Outstanding Portfolio $49,558 $93,952,068
Number of Loans Delinquent 3 18,170
Default Rate 0.00% 1.40%
Amount of Ended Loans Defaulted $0 $11,327,296
Number of Ended Loans Defaulted 0 32,592
Currency Exchange Loss Rate 0.01% 0.46%
Amount of Currency Exchange Loss $9 $4,326,176
Refund Rate 0.00% 0.62%
Amount of Refunded Loans $0 $5,912,425
Number of Refunded Loans 0 5,951

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 100.00% 75.25%
Average Loan Size $4,260 $400
Average Individual Loan Size $4,260 $632
Average Group Loan Size $0 $1,766
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $36,200 $5,888
Average Loan Size / GDP per capita (PPP) 11.77% 6.79%
Average Time to Fund a Loan 5.46 days 6.93 days
Average Dollars Raised Per Day Per Loan $780.54 $57.66
  Average Loan Term 36.43 months 11.11 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 4 495,157
  Journaling Rate 80.00% 41.51%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.18

Borrowing Cost Comparison (based on 2015 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 0% APR N/A 26.03% PY
  Profitability (return on assets) 17.1% N/A -0.81%
  Average Loan Size (% of per capita income) N/A N/A 17.16%

Country Fast Facts

Field Partner Staff

Donald Franklin