Status update - December 22, 2021

Since the beginning of the pandemic, REAL Impact has faced significant challenges in how it operates its business in Papua New Guinea and unfortunately the organisation has made the difficult decision to cease trading. REAL Impact has exhausted all efforts at recovering repayments on its Kiva loans and regrettably this has resulted in losses for our lenders. Through this partnership, Kiva's lenders helped REAL Impact test out an ambitious lending methodology providing working capital loans to communities and business sectors that suffer from a high degree of financial exclusion. Although the outcome wasn't what either party had hoped for, small artisanal businesses in remote parts of Papua New Guinea did at least get the opportunity to access financing for the first time and learn from this experience. REAL Impact leave a legacy of valuable experimentation and we hope others can pick up the baton from here to improve financial inclusion for creative artisans worldwide.


Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.


Partner description:

REAL Impact is a for-profit social enterprise that is based in Australia and lends to small and growing businesses in Pacific Island nations. REAL Impact seeks to develop a viable and export-ready creative industry across the Pacific region by connecting global fashion and interior design retailers with local artisan producers. The social enterprise provides capacity building for artisans and generates more consistent demand via its e-commerce B2B marketplace.   

 

A unique lending approach:

Kiva financing will go towards REAL Impact’s efforts to provide working capital loans to artisans making products such as furniture, lighting and artworks.

The loan amounts with range from $5,000 to $20,000.


Repayment Performance on Kiva

    This Lending Partner All Kiva Partners
  Start Date On Kiva Nov 1, 2018 Oct 12, 2005
Total Loans $41,000 $2,056,238,590
Amount of raised Inactive loans $0 $277,355
Number of raised Inactive loans 0 253
Amount of Paying Back Loans $0 $158,100,775
Number of Paying Back Loans 0 187,973
Amount of Ended Loans $41,000 $1,854,343,460
Number of Ended Loans 4 2,501,455
Delinquency Rate 0.00% 12.27%
Amount in Arrears $0 $11,965,982
Outstanding Portfolio $0 $97,560,700
Number of Loans Delinquent 0 63,552
Default Rate 82.93% 1.84%
Amount of Ended Loans Defaulted $34,000 $34,038,827
Number of Ended Loans Defaulted 4 91,258
Currency Exchange Loss Rate 0.00% 0.47%
Amount of Currency Exchange Loss $0 $12,742,203
Refund Rate 0.00% 0.55%
Amount of Refunded Loans $0 $11,261,520
Number of Refunded Loans 0 9,866

Loan Characteristics On Kiva

    This Lending Partner All Kiva Partners
  Loans to Women Borrowers 50.00% 78.49%
Average Loan Size $10,250 $393
Average Individual Loan Size $10,250 $585
Average Group Loan Size $0 $1,913
Average number of borrowers per group 0 8.3
Average GDP per capita (PPP) in local country $2,400 $5,592
Average Loan Size / GDP per capita (PPP) 427.08% 7.03%
Average Time to Fund a Loan 0.41 days 9.13 days
Average Dollars Raised Per Day Per Loan $24,761.64 $43.04
  Average Loan Term 10.75 months 11.5 months

Journaling Performance on Kiva

    This Lending Partner All Kiva Partners
  Total Journals 1 1,224,773
  Journaling Rate 25.00% 41.91%
  Average Number of Comments Per Journal 0.00 0.02
  Average Number of Recommendations Per Journal 0.00 0.55

Borrowing Cost Comparison (based on 2009 data)

    This Lending Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower N/A N/A 26.61% PY
  Profitability (return on assets) 90% N/A -1.37%
  Average Loan Size (% of per capita income) N/A N/A 0.00%

Country Fast Facts

Lending Partner Staff