Partner Description:

Instituto Peruano de Fomento Educativo, or Promotion of Education Peruvian Institute, is a non-profit organization that provides affordable credit facilities for students hoping to gain access to higher education. IPFE has more than 50 years of experience in the development of educational programs and projects targeted towards Peru’s sustainability. They do this by specifically targeting low-income students seeking an education in the technical field.

With a constantly developing economy, Peru is in great need of competent and qualified technicians in the mining, agro-industry, and finance sectors. IPFE is dedicated to assisting low-income students secure a specific competency and ultimately a well-paying job in currently thriving technical industries. IPFE maintains regular contact with students in order to ensure that the student is succeeding academically and is on track to graduate. IPFE also holds student workshops throughout the year to plan and discuss long-term professional goals and career planning. Approximately 95% of IPFE’s student borrowers secure higher-income, stable employment within 3 months of graduating.
A unique lending approach:

IPFE has successfully partnered with the technical institute SENATI to offer students the opportunity to enroll in technical courses. IPFE will offer loans of approximately $5000 that cover tuition fees for six cycles (of 5 months) of studies in a technical program at SENATI, ranging from mechanical engineering to computer administration.

IPFE and SENATI have estimated that there are about 6,500 students in Lima, Peru who would benefit from a loan to finance their education. With Kiva’s support, IPFE will be able to fuel its student loan portfolio growth and launch a pilot program to fund students’ tuition fees for technical degrees.

Student Testimonial: 

Karoline, SENATI Graduate in Auto-Mechanics

Karoline, a SENATI Graduate in Auto-Mechanics

Karoline is a 20-year old recent graduate of SENATI from the district of Rimac in Lima, Peru. She started her work in a local auto-mechanic shop called Automatriz Vadillo immediately after graduation, and states that SENATI did an excellent job of preparing her for her job through her coursework and internships in the final semesters. Currently, Karoline is the only female in her job, as the nature of the work tends to attract more males. Despite this fact and working in the heat 10 hours a day, from Monday to Saturday, she is constantly learning and loves her job.

Without the Kiva loan, it would have been extremely difficult for her to continue her studies due to her family’s economical situation. She says, “I am extremely thankful for the support and opportunity that Kiva has given me. In particular, Kiva Lenders allowed me to finish my degree in Auto Mechanics at SENATI, which led to my current job in an Auto-mechanic shop.”

In the future, Karoline aspires to further and specialize her education in auto-electronics, as she believes that technology is constantly advancing nowadays. Afterword, she hopes to eventually give back by teaching others what she has learned in her field.

Karoline is just one example of the several bright students in Peru seeking higher education through IPFE. To help other students reach their fullest potential, please consider funding a loan through IPFE.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Apr 7, 2014 Oct 12, 2005
Total Loans $799,175 $1,446,471,475
Amount of raised Inactive loans $0 $1,203,625
Number of raised Inactive loans 0 194
Amount of Paying Back Loans $148,975 $145,191,200
Number of Paying Back Loans 32 163,527
Amount of Ended Loans $650,200 $1,300,076,650
Number of Ended Loans 182 1,704,858
Delinquency Rate 2.67% 23.51%
Amount in Arrears $2,729 $21,703,337
Outstanding Portfolio $102,094 $92,297,732
Number of Loans Delinquent 5 74,988
Default Rate 5.09% 1.73%
Amount of Ended Loans Defaulted $33,079 $22,477,325
Number of Ended Loans Defaulted 27 54,469
Currency Exchange Loss Rate 1.17% 0.40%
Amount of Currency Exchange Loss $9,383 $5,836,094
Refund Rate 2.90% 0.63%
Amount of Refunded Loans $23,150 $9,148,850
Number of Refunded Loans 8 8,475

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 33.07% 76.66%
Average Loan Size $3,704 $395
Average Individual Loan Size $3,704 $611
Average Group Loan Size $0 $1,772
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $12,000 $5,731
Average Loan Size / GDP per capita (PPP) 30.87% 6.89%
Average Time to Fund a Loan 12.04 days 7.41 days
Average Dollars Raised Per Day Per Loan $307.66 $53.30
  Average Loan Term 44.76 months 11.37 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 119 909,721
  Journaling Rate 58.39% 43.86%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.70

Borrowing Cost Comparison (based on 2017 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 10% APR 29.00% PY 25.38% PY
  Profitability (return on assets) 45.3% 1.4% -1.35%
  Average Loan Size (% of per capita income) N/A 42.00% 12.34%

Country Fast Facts

Field Partner Staff

Carolina Boza
Jose Huanambal
Rodolfo Molinero