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 $938,320,675
Amount of raised Inactive loans $0 $501,975
Number of raised Inactive loans 0 449
Amount of Paying Back Loans $5,125 $143,680,125
Number of Paying Back Loans 3 175,943
Amount of Ended Loans $157,100 $794,138,575
Number of Ended Loans 229 994,903
Delinquency Rate 100.00% 7.90%
Amount in Arrears $1,026 $7,433,246
Outstanding Portfolio $1,026 $94,132,449
Number of Loans Delinquent 3 19,274
Default Rate 0.00% 1.40%
Amount of Ended Loans Defaulted $0 $11,137,050
Number of Ended Loans Defaulted 0 31,506
Currency Exchange Loss Rate 0.16% 0.46%
Amount of Currency Exchange Loss $257 $4,278,396
Refund Rate 0.00% 0.63%
Amount of Refunded Loans $0 $5,887,300
Number of Refunded Loans 0 5,924

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 97.91% 75.18%
Average Loan Size $699 $401
Average Individual Loan Size $699 $634
Average Group Loan Size $0 $1,772
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $15,600 $5,898
Average Loan Size / GDP per capita (PPP) 4.48% 6.80%
Average Time to Fund a Loan 1.39 days 6.93 days
Average Dollars Raised Per Day Per Loan $502.41 $57.86
  Average Loan Term 4.66 months 11.1 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 146 486,687
  Journaling Rate 62.50% 41.51%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.20

Borrowing Cost Comparison (based on 2015 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 43% APR 74.00% PY 25.92% PY
  Profitability (return on assets) N/A 1% -0.29%
  Average Loan Size (% of per capita income) N/A 4.00% 17.68%

Country Fast Facts

Field Partner Staff

Alejandro Arana
David Arana
Fernando Barragán
Ana Paula Gil Armendariz