Status update — August 18, 2017

Kiva recently re-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, spoke with key members of the staff and analyzed the Field Partner’s loan products. As a result, TerraClear's risk rating is now listed as 0.5 stars instead of 1 star. The primary reason for this change in rating is the worsening of their financial situation.


Status update — September 15, 2016

In early 2016, TerraClear faced unexpected operational difficulties that resulted in cash flow issues at the organization. They have since revamped their credit processes and agreed upon a repayment plan with Kiva, where the organization will pay off the outstanding balance over a 12 month period, or possibly earlier if circumstances permit. So far they are keeping track with the plan and Kiva is confident this partner will repay the amount owed to lenders in time, thus reducing their delinquency rate on Kiva. Kiva has allowed TerraClear to continue to fundraise for new loans as they work to repay, and continues to actively monitor the situation.  


Partner description: 
TerraClear is a for-profit social enterprise that focuses on overcoming barriers to clean water in Laos through the production and distribution of ceramic water purifiers. More than 30% of the population in Laos lack access to clean drinking water. Problems of poor water and sanitation are particularly prevalent in rural portions of the country where distribution of clean water is limited and expensive.  
 
TerraClear sells these water purifiers throughout the country and aims to give low-income communities increased access to the product.
 
With Kiva financing, TerraClear is expanding its services and distributing more clean water purifiers nationwide.
 
A Unique Lending Approach: 
 

Trained salespeople introduce TerraClear water purifiers during village meetings. At the village meetings the sales people moderate a discussion on the health ​implications of drinking contaminated water, the cost of purifying unhealthy water via boiling, and the cost of buying clean water in 20 liter bottles. The community then compares these costs versus the cost to purchase a TerraClear water purifier with 2 year warranty​. TerraClear sales people offer a financing option for members of the community who cannot afford to pay the upfront cost of the product - these are individuals/groups featured on Kiva’s website.
  
With Kiva’s funding, TerraClear can meet the increasing demand for their water purifiers and expand access to clean water in rural communities. 

  
 

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 26, 2014 Oct 12, 2005
Total Loans $1,278,325 $1,342,243,800
Amount of raised Inactive loans $0 $1,129,300
Number of raised Inactive loans 0 1,461
Amount of Paying Back Loans $1,075 $147,423,550
Number of Paying Back Loans 9 194,726
Amount of Ended Loans $1,277,250 $1,193,690,950
Number of Ended Loans 1,935 1,537,959
Delinquency Rate 100.00% 10.51%
Amount in Arrears $465 $9,735,701
Outstanding Portfolio $450 $92,639,883
Number of Loans Delinquent 9 57,667
Default Rate 6.77% 1.76%
Amount of Ended Loans Defaulted $86,481 $21,037,796
Number of Ended Loans Defaulted 660 51,424
Currency Exchange Loss Rate 0.00% 0.39%
Amount of Currency Exchange Loss $0 $5,195,382
Refund Rate 0.00% 0.59%
Amount of Refunded Loans $0 $7,939,025
Number of Refunded Loans 0 7,847

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 40.04% 76.42%
Average Loan Size $70 $394
Average Individual Loan Size $137 $609
Average Group Loan Size $768 $1,762
Average number of borrowers per group 11.2 7.7
Average GDP per capita (PPP) in local country $3,100 $5,773
Average Loan Size / GDP per capita (PPP) 2.25% 6.82%
Average Time to Fund a Loan 1.25 days 7.13 days
Average Dollars Raised Per Day Per Loan $55.68 $55.26
  Average Loan Term 8.67 months 11.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 204 796,440
  Journaling Rate 10.49% 43.15%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.80

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 43.00% PY 25.24% PY
  Profitability (return on assets) -0.1% N/A -1.43%
  Average Loan Size (% of per capita income) N/A N/A 12.96%

Country Fast Facts

Field Partner Staff

Nathan Cole
Matt Nieswender
Pueng Siripan
Soy Sithalath