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:

Vahatra is a non-profit organization in Madagascar that provides loans to low-income families who earn an average of $1 a day.

Vahatra's lending is focused primarily on supporting clients' new or existing income-generating activities. The organization has also designed loan products to help borrowers pay for school fees, emergency situations, professional training, and to support community-based social groups. Vahatra carefully evaluates each family’s need and economic capacity before issuing a loan in order to tailor a solution for each situation.

A unique lending approach:

Vahatra provides loans to low-income families Borrowers can take out loans for a range of services including enterprise loans to cover commerce, and social loans to cover professional training and school fees. Additionally, the organization offers health insurance at two branches, provides career development training to young people, and runs a preschool and other family services.
Vahatra offers two customizable microenterprise loan products- a “first loan” and a “subsequent loan.” First loans are capped at $60, while subsequent loans can be as much as $1,400, depending on client capacity and repayment history during previous loan cycles. With Kiva funding, this small organization will be able to provide services to to more families.

A Note on Vahatra’s Portfolio Yield:

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.

For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.

We seek to support loans that don’t impose an unjustifiable cost burden on hard-working borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale.

Factors that drive up the costs that this partner organization charges its borrowers include:

  • They operate in Madagascar, which is classified as a fragile situation by the U.N. This can greatly increase the cost of safely delivering financial services to borrowers. 
  • They provide very small loans. This leads to higher operating costs, since providing each individual loan presents a minimum per-unit cost.
  • They provide more than just cash to many of their borrowers, including costly wraparound services such as healthcare, financial or business training, agricultural extension services, insurance or access to education.
  • They work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.
  • They’re based in an area with a high cost of living and doing business. This is often due to the high demand and low supply of adequate housing and goods.
  • They’re a small company or organization that hasn’t yet achieved the scale and efficiency necessary to reach sustainability and reduce pricing, but the impact of their services merits the opportunity to prove their business model.
  • This partner is working in a country where doing business is difficult and costly due to regulatory, procedural and governance issues.
  • They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.
  • They operate in an area with a limited or poorly functioning banking system. This makes it difficult to access funding locally, and makes it more challenging to send and receive payments on loans from outside the country.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 2, 2015 Oct 12, 2005
Total Loans $497,825 $974,903,975
Amount of raised Inactive loans $0 $446,850
Number of raised Inactive loans 0 211
Amount of Paying Back Loans $216,975 $147,400,875
Number of Paying Back Loans 804 183,981
Amount of Ended Loans $280,850 $827,056,250
Number of Ended Loans 786 1,039,701
Delinquency Rate 2.10% 8.21%
Amount in Arrears $2,848 $7,880,852
Outstanding Portfolio $135,548 $95,953,362
Number of Loans Delinquent 79 20,164
Default Rate 0.06% 1.39%
Amount of Ended Loans Defaulted $177 $11,517,038
Number of Ended Loans Defaulted 1 33,034
Currency Exchange Loss Rate 0.09% 0.45%
Amount of Currency Exchange Loss $440 $4,428,499
Refund Rate 0.11% 0.61%
Amount of Refunded Loans $550 $5,967,400
Number of Refunded Loans 1 5,984

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 72.07% 75.40%
Average Loan Size $313 $399
Average Individual Loan Size $313 $629
Average Group Loan Size $0 $1,760
Average number of borrowers per group 0 7.7
Average GDP per capita (PPP) in local country $1,000 $5,874
Average Loan Size / GDP per capita (PPP) 31.33% 6.79%
Average Time to Fund a Loan 1.08 days 6.9 days
Average Dollars Raised Per Day Per Loan $289.89 $57.76
  Average Loan Term 9.41 months 11.13 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 910 509,194
  Journaling Rate 86.60% 41.50%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.16

Borrowing Cost Comparison (based on 2014 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 55% PY 42.00% PY 26.13% PY
  Profitability (return on assets) 0.5% 0.9% -1.72%
  Average Loan Size (% of per capita income) N/A 142.00% 16.60%

Country Fast Facts

Field Partner Staff

Vero Randriamihaja
Julio Vahatriniaina
Andreanne Yaghi