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 — September 13, 2019

Kiva recently 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 and analyzed the Field Partner’s loan products. As a result, JIMF's risk rating is now listed as 1.0 stars.

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 $204,225 $1,608,688,920
Amount of raised Inactive loans $0 $647,750
Number of raised Inactive loans 0 706
Amount of Paying Back Loans $79,400 $165,151,500
Number of Paying Back Loans 16 202,585
Amount of Ended Loans $124,825 $1,442,889,670
Number of Ended Loans 29 1,907,536
Delinquency Rate 13.05% 17.24%
Amount in Arrears $4,637 $17,837,794
Outstanding Portfolio $35,428 $103,457,745
Number of Loans Delinquent 9 75,538
Default Rate 0.00% 1.71%
Amount of Ended Loans Defaulted $0 $24,702,368
Number of Ended Loans Defaulted 0 61,787
Currency Exchange Loss Rate 0.00% 0.40%
Amount of Currency Exchange Loss $9 $7,011,687
Refund Rate 0.00% 0.59%
Amount of Refunded Loans $0 $9,486,100
Number of Refunded Loans 0 8,846

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 100.00% 77.44%
Average Loan Size $4,538 $392
Average Individual Loan Size $4,538 $600
Average Group Loan Size $0 $1,805
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $36,200 $5,673
Average Loan Size / GDP per capita (PPP) 12.54% 6.91%
Average Time to Fund a Loan 5.15 days 8.07 days
Average Dollars Raised Per Day Per Loan $880.53 $48.58
  Average Loan Term 36.68 months 11.36 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 8 979,534
  Journaling Rate 21.88% 42.24%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.67

Borrowing Cost Comparison (based on 2017 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 0% APR N/A 26.41% PY
  Profitability (return on assets) 0.3% N/A -0.56%
  Average Loan Size (% of per capita income) N/A N/A 11.35%

Country Fast Facts

Field Partner Staff

Donald Franklin