Status update — January 30, 2018

Kiva and Konfío have agreed to end their partnership after nearly 4 years and more than $160K in loans raised. This Field Partner has shifted its focus to serve less disadvantaged populations, and therefore no longer fits Kiva's model for impact. Konfio has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank Konfio for the years of collaboration and wish them success in their future endeavors.

Partner Description:

Konfío is a for-profit company that offers low-interest loans to low-income people living in urban areas of Mexico. It is a community based on trust. Konfío is able to offer loans at such low interest rates because of their efficient use of technology and automated processes.
 
Traditional MFIs do not rely heavily on technology, but instead rely on credit officers who oversee the lending process. Konfío reduces the cost of company infrastructure dramatically by conducting most of their lending process online and by telephone. Konfío’s low operational costs translate to lower interest rates for borrowers.  
 
Konfío is a new company and has not yet raised funds from other institutions. Kiva funding will enable them to expand and develop a positive reputation in the Mexican microfinance industry among low-income borrowers. 

A Unique Lending Approach:
 
Konfío provides individual loans for people to pay for medical health care and special wheel chairs, or to set up small businesses. Loans for setting up small businesses are particularly targeted to women. Because of Konfío’s use of technology in the loan process, it is essential that borrowers have access to the Internet or a smart phone.
 
Konfío has a dedicated team who assists borrowers and answers questions through email and over the telephone. In the future they plan to hold workshops to help prospective borrowers fill out the online application.  Konfío also expects to create modules through which clients can learn financial concepts and gain access to lower interest rates as they become more financially literate.

Through the application process, Konfío identifies borrowers who are members of communities with reliable credit histories. Konfío creates social collateral to ensure the repayment of loans by lending to members of social networks that will hold each other accountable for loan repayment.  

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 9, 2014 Oct 12, 2005
Total Loans $162,225 $1,439,510,275
Amount of raised Inactive loans $0 $1,241,575
Number of raised Inactive loans 0 123
Amount of Paying Back Loans $0 $146,261,900
Number of Paying Back Loans 0 163,672
Amount of Ended Loans $162,225 $1,292,006,800
Number of Ended Loans 232 1,691,893
Delinquency Rate 0.00% 22.09%
Amount in Arrears $0 $20,829,100
Outstanding Portfolio $0 $94,291,116
Number of Loans Delinquent 0 77,842
Default Rate 0.00% 1.73%
Amount of Ended Loans Defaulted $0 $22,369,195
Number of Ended Loans Defaulted 0 54,266
Currency Exchange Loss Rate 0.16% 0.39%
Amount of Currency Exchange Loss $257 $5,745,563
Refund Rate 0.00% 0.63%
Amount of Refunded Loans $0 $9,123,550
Number of Refunded Loans 0 8,449

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 97.91% 76.62%
Average Loan Size $699 $395
Average Individual Loan Size $699 $612
Average Group Loan Size $0 $1,770
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $15,600 $5,734
Average Loan Size / GDP per capita (PPP) 4.48% 6.89%
Average Time to Fund a Loan 1.39 days 7.3 days
Average Dollars Raised Per Day Per Loan $502.41 $54.09
  Average Loan Term 4.66 months 11.37 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 146 906,561
  Journaling Rate 62.50% 43.90%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.71

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 42% APR 74.00% PY 25.53% PY
  Profitability (return on assets) N/A 1% -1.31%
  Average Loan Size (% of per capita income) N/A 4.00% 12.38%

Country Fast Facts

Field Partner Staff