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

Status update — February 3. 2015
Given upcoming regulations related to Chile's education system, Kiva has decided to move Lumni Chile to Inactive status until we have better clarity on how these new regulations might affect their business model. In Inactive status, Lumni Chile is no longer fundraising loans on Kiva, though Kiva fully expects the partner to continue to send repayments owed to Kiva lenders for as long as the partner has an outstanding balance. Kiva and Lumni Chile may chose to renew their partnership in the near future if conditions allow Kiva lenders to support Lumni's students. 

Partner description:
Lumni is a lending organization in Chile that helps students from low-income families pay their tuition through future income contracts. Founded in 2003, the organization is a pioneer in the field of human capital financing in Chile, and now also operates in Colombia, Mexico, Peru, and the United States. To date, it has financed nearly 2,000 students to pursue higher education -- nearly all from low-income backgrounds.

In Chile, only 40% of the eligible student population is able to access higher education -- compared to 80% in developed countries. One of the main barriers to education is the limited access to financing, either due to the cost of borrowing or requirements like collateral and guarantors. While government subsidies exist, they are reserved for certain segments of the population, and many students are left out. Kiva lenders’ funds help the organization support even more students from low-income backgrounds to pursue higher education in Chile.

A unique lending approach:
Many students in Chile are in need of financing, sometimes unexpectedly. For example, the death of a family’s income earner can jeopardize tuition payments. Sometimes school fees are higher than anticipated. Not all of these students can access regular loans. In these circumstances, Lumni enables students to continue their studies without burdensome debt payments or putting up collateral, but rather by pledging a percentage of their future income. The loan, in the form of tuition payments, is made by Lumni directly to the university, so there is no risk of a student losing or misusing funds.

User-added image

Whenever a student borrower is not employed (while studying, looking for work, or unemployed), only a monthly “repayment culture” payment of around US$10 is due. Once the borrower starts to work, Lumni calculates repayments as a percentage of their income, making it easier to pay back the loan.

While Lumni does not charge a formal interest rate, it charges a percentage of income for the length of the loan. This percentage is determined by statistical analysis and is adjusted based on country, employability, periods of unemployment and loan size. This rate for student loans at Lumni does not exceed 15%.

Image courtesy of Lumni.


Repayment Performance on Kiva

    This Lending Partner All Kiva Partners
  Start Date On Kiva May 29, 2013 Oct 12, 2005
Total Loans $16,925 $1,958,300,470
Amount of raised Inactive loans $0 $202,845
Number of raised Inactive loans 0 165
Amount of Paying Back Loans $0 $160,872,085
Number of Paying Back Loans 0 188,297
Amount of Ended Loans $16,925 $1,768,236,180
Number of Ended Loans 3 2,370,020
Delinquency Rate 0.00% 12.24%
Amount in Arrears $0 $12,206,242
Outstanding Portfolio $0 $99,725,561
Number of Loans Delinquent 0 72,811
Default Rate 6.47% 1.83%
Amount of Ended Loans Defaulted $1,094 $32,298,216
Number of Ended Loans Defaulted 1 84,743
Currency Exchange Loss Rate 13.30% 0.50%
Amount of Currency Exchange Loss $2,252 $11,931,838
Refund Rate 0.00% 0.54%
Amount of Refunded Loans $0 $10,526,300
Number of Refunded Loans 0 9,596

Loan Characteristics On Kiva

    This Lending Partner All Kiva Partners
  Loans to Women Borrowers 0.00% 78.22%
Average Loan Size $5,642 $392
Average Individual Loan Size $5,642 $589
Average Group Loan Size $0 $1,891
Average number of borrowers per group 0 8.3
Average GDP per capita (PPP) in local country $19,100 $5,599
Average Loan Size / GDP per capita (PPP) 29.54% 7.00%
Average Time to Fund a Loan 3.68 days 8.93 days
Average Dollars Raised Per Day Per Loan $1,533.75 $43.87
  Average Loan Term 47 months 11.47 months

Journaling Performance on Kiva

    This Lending Partner All Kiva Partners
  Total Journals 3 1,178,470
  Journaling Rate 100.00% 42.26%
  Average Number of Comments Per Journal 0.00 0.02
  Average Number of Recommendations Per Journal 0.00 0.57

Borrowing Cost Comparison (based on 2009 data)

    This Lending Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower N/A 18.00% PY 27.02% PY
  Profitability (return on assets) N/A -1.8% -3.10%
  Average Loan Size (% of per capita income) N/A 8.00% 0.00%

Country Fast Facts

Lending Partner Staff