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 — January 25, 2016

After 28 months on Kiva and 66 loans fundraised, Fundación CREHO has graduated out of Kiva’s Experimental Partnership program and been given a risk rating of 1.5 stars. 

Partner description:

Fundación CREHO (Honduran Foundation for Educational Loans) is a lending institution founded in 2002 in Tegucigalpa that focuses exclusively on student loans. It aims to be the leading private organization offering education loans in the country, contributing to the transformation of Honduras by enabling the training of qualified people. 

CREHO was founded as a collaboration of 98 small organizations that were interested in creating a private student lending organization in Honduras. 

Today, Honduras suffers from unequal income distribution and high underemployment; more than a third of the population is unemployed or underemployed. Part of the reason for this is lack of access to education among youth.

CREHO has formal partnerships with a number of universities throughout the country. Students can attend any institution within CREHO’s network, which covers the vast majority of quality Honduran institutions. 

Kiva lenders’ funds are used to help the organization give even more students in Honduras the opportunity to pursue higher education and their career goals.

A unique lending approach:

CREHO offers loans to cover tuition costs, including enrollment at technical and vocational schools and universities for undergraduate, master’s and doctoral programs. Additionally, students can get a loan to cover their rent, food and transport expenses as well as school supplies like computers.

About 58% of CREHO’s beneficiaries are women borrowers, and more than 56% of students take out loans for the purposes of attending college. While CREHO is still quite small, its rate of growth is not insignificant, especially taking into account its small staff of three full-time employees. In 2010, the organization disbursed about $190,000 in loans. In 2012, that number jumped to $250,000. 

The number of students has also grown quickly between 2010 and 2012, as well as the number of people who successfully complete their funded programs. According to the loan exit interviews conducted by the organization, 68% of its previous borrowers work for the private sector, and about 5% have founded their own businesses.

The average worker in Honduras makes roughly $243 per month ($2,916 per year), which is slightly under the national minimum wage.  According to the organization’s research, average family income of CREHO students is $5,404. It estimates that expected student income is likely to increase by 265% by virtue of having a college degree.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 8, 2013 Oct 12, 2005
Total Loans $292,875 $1,495,032,325
Amount of raised Inactive loans $0 $347,250
Number of raised Inactive loans 0 149
Amount of Paying Back Loans $94,075 $153,404,400
Number of Paying Back Loans 28 187,447
Amount of Ended Loans $198,800 $1,341,280,675
Number of Ended Loans 80 1,759,156
Delinquency Rate 9.11% 20.67%
Amount in Arrears $4,027 $20,066,413
Outstanding Portfolio $44,202 $97,093,255
Number of Loans Delinquent 7 70,029
Default Rate 10.41% 1.73%
Amount of Ended Loans Defaulted $20,704 $23,256,208
Number of Ended Loans Defaulted 13 57,822
Currency Exchange Loss Rate 0.45% 0.40%
Amount of Currency Exchange Loss $1,320 $6,269,289
Refund Rate 0.00% 0.62%
Amount of Refunded Loans $0 $9,331,075
Number of Refunded Loans 0 8,663

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 59.66% 76.90%
Average Loan Size $2,712 $393
Average Individual Loan Size $2,712 $606
Average Group Loan Size $0 $1,777
Average number of borrowers per group 0 7.9
Average GDP per capita (PPP) in local country $4,800 $5,710
Average Loan Size / GDP per capita (PPP) 56.50% 6.89%
Average Time to Fund a Loan 9.35 days 7.8 days
Average Dollars Raised Per Day Per Loan $290.00 $50.45
  Average Loan Term 55.36 months 11.37 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 17 931,594
  Journaling Rate 10.81% 43.17%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.69

Borrowing Cost Comparison (based on 2017 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 15% APR 36.00% PY 26.45% PY
  Profitability (return on assets) 1% 2.2% -0.68%
  Average Loan Size (% of per capita income) N/A 41.00% 12.07%

Country Fast Facts

Field Partner Staff

Mayte Portillo
Kellyn Suazo