Kiva Help

Field Partner Risk Rating

  1. Field Partner
  2. Field Partner Risk Rating
  3. Evidence Supporting Repayment Likelihood
  1. Field Partner:
    Kiva partners with microfinance institutions around the world. In doing so, Kiva gains access to outstanding and deserving
    entrepreneurs from impoverished communities.
    Our Field Partners are responsible for screening each entrepreneur and administering your loan.
  2. Field Partner Risk Rating:

    A Field Partner Risk Rating is a 1 to 5 star rating assigned to each Field Partner by Kiva's staff, with five stars indicating lower risk and one star indicating higher risk .
    It is based on evidence supporting a Field Partner's repayment likelihood and is
    intended to provide more insight for those who are sensitive to repayment risk.

    A 5-Star Field Partner is a highly established micro-lending institution with a proven track record,
    audited financials and high ratings from independent evaluators.
    In contrast, a 1-Star Field Partner is usually young and unproven --
    but with the potential to reach entrepreneurs not reached by more established Field Partners.
    Like eBay and other online marketplaces, Kiva hopes that this online lending platform will let
    unproven, riskier Field Partners build a great reputation through long term performance.
    In the process, they should be able to raise capital from other sources beyond Kiva
    to serve more of the poor in their area.
    You should lend via a Field Partner based on your tolerance for repayment risk. A Closed partner indicates that Kiva no longer works with the partner.











    "1-Star" Risk Rating

    A Field Partner Risk Rating is a 1 to 5 star rating assigned to each Field Partner by Kiva's staff, with five stars indicating lower risk and one star indicating higher risk .
    It is based on evidence supporting a Field Partner's repayment likelihood and is
    intended to provide more insight for those who are sensitive to repayment risk.

    A "1-Star" rating means that this Field Partner has a very limited amount of evidence demonstrating high likelihood of repayment.
    This "1-Star" rating is often a result of the Field Partner being a
    very young organization or the lack of immediately available, low cost
    of third-party verification options. Kiva enables "1-Star" partners
    to slowly build a verifiable performance track record online by
    allowing a very limited number of loan requests to be posted and
    funded. As a track record for effective loan management is
    established, the Field Partner's risk rating will improve. We
    recommend lending via a "1-Star" Field Partner if there is a unique
    connection to the entrepreneur and a very high tolerance for
    repayment uncertainty. If you prefer more outcome
    certainty, we recommend selecting an entrepreneur posted by a 3,
    4 or 5 star rated Field Partner
    .











    "2-Star" Risk Rating

    A Field Partner Risk Rating is a 1 to 5 star rating assigned to each Field Partner by Kiva's staff, with five stars indicating lower risk and one star indicating higher risk .
    It is based on evidence supporting a Field Partner's repayment likelihood and is
    intended to provide more insight for those who are sensitive to repayment risk.

    A "2-Star" rating means that this Field Partner has a limited amount of evidence demonstrating high likelihood of repayment.
    This "2-Star" rating is often a result of the Field
    Partner being a very young organization or the lack of immediately available, low cost of third-party
    verification options. Kiva enables "2-Star" partners to slowly build a verifiable performance track
    record online by allowing a limited number of loan requests to be posted and funded. As a track record for
    effective loan management is established, the Field Partner's risk rating will improve. We recommend lending
    via a "2-Star" Field Partner if there is a unique connection to the entrepreneur and a high tolerance for
    repayment uncertainty. If you prefer more outcome certainty, we recommend selecting an
    entrepreneur posted by a
    3, 4 or 5 star rated Field Partner.











    "3-Star" Risk Rating

    A Field Partner Risk Rating is a 1 to 5 star rating assigned to each Field Partner by Kiva's staff, with five stars indicating lower risk and one star indicating higher risk .
    It is based on evidence supporting a Field Partner's repayment likelihood and is
    intended to provide more insight for those who are sensitive to repayment risk.

    A "3-Star" rating means that this Field Partner has a moderate amount of evidence demonstrating high likelihood of repayment.
    It is not as firmly established as 4 or 5 star partners, but the organization has passed basic verification and shows promise if given a chance to build a track record over time. We recommend lending via a "3-Star" Field Partner if there is a unique connection to the entrepreneur and moderate tolerance for repayment uncertainty.











    "4-Star" Risk Rating

    A Field Partner Risk Rating is a 1 to 5 star rating assigned to each Field Partner by Kiva's staff, with five stars indicating lower risk and one star indicating higher risk .
    It is based on evidence supporting a Field Partner's repayment likelihood and is
    intended to provide more insight for those who are sensitive to repayment risk.

    A "4-Star" rating means that this Field Partner has a significant amount of evidence demonstrating high likelihood of repayment.
    Kiva has confidence in the Field Partner's ability to dutifully administer and collect your loan. Kiva will continue to monitor this Field Partner to adjust this rating over time. We recommend lending via a "4-Star" Field Partner if there is a unique connection to the entrepreneur and low tolerance for repayment uncertainty.











    "5-Star" Risk Rating

    A Field Partner Risk Rating is a 1 to 5 star rating assigned to each Field Partner by Kiva's staff, with five stars indicating lower risk and one star indicating higher risk .
    It is based on evidence supporting a Field Partner's repayment likelihood and is
    intended to provide more insight for those who are sensitive to repayment risk.

    A "5-Star" rating means that this Field Partner has a very significant amount of evidence demonstrating high likelihood of repayment.
    Kiva has full confidence in the Field Partner's ability to dutifully administer and collect your loan. Kiva will continue to monitor this Field Partner to adjust this rating over time. We recommend lending via a "5-Star" Field Partner if there is a unique connection to the entrepreneur and very low tolerance for repayment uncertainty.









  3. Evidence Supporting Repayment Likelihood:
    Kiva determines each Field Partner's Risk Rating based on:



    Factors (Outside of Kiva) Affecting Risk Rating:


    1. Recent Financial Audits, Credit Ratings and Independent Evaluations

    2. Most Reputable Outside Funder and Network Affiliations

    3. Existing Loan Portfolio Size and Risk

    4. Organizational Age and Sustainability



    Factors (Driven by Kiva) Affecting Risk Rating:


    1. Kiva Data Verification Audits:
      Kiva commissions certified local audit firms to randomly check several entrepreneurs listed on the Kiva website to ensure data accuracy (e.g. that the funds really reached the entrepreneur).



    2. Journaling Rate:
      For each loan, Kiva requires at least one journal update, before or at the end of the loan term, about the impact of the loan on the entrepreneur's life.

    3. Kiva Repayment Performance Over Time:
      Like other online marketplaces (e.g. eBay), Kiva incorporates the long term repayment performance of each Field Partner into their Risk Rating allowing less reputable Field Partners to build their reputation online.

    4. Bank Statement Reviews:
      For select Field Partners with lower Risk Rating, Kiva monitors the Bank Statement in order to verify the flow of funds and note any major discrepancies.