Kiva Help

About the Field Partner

  1. Field Partner
  2. Field Partner Risk Rating
  3. Time On Kiva
  4. Kiva Entrepreneurs
  5. Total Loans
  6. Delinquency Rate
  7. Default Rate
  8. Evidence Supporting Repayment Likelihood
  9. Amount of Paying Back Loans Delinquent
  10. Amount of Paying Back Loans
  11. Amount of Ended Loans Defaulted
  12. Amount of Ended Loans
  13. Amount of Currency Exchange Loss
  14. Currency Exchange Loss Rate
  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. Time On Kiva:
    Number of months since the Field Partner first posted a loan on Kiva.org.
  4. Kiva Entrepreneurs:
    Total number of entrepreneurs posted by this Field Partner that have raised loans on Kiva. This number includes individual entrepreneurs within this partner's group loans.
  5. Total Loans:
    Total loans indicate the total amount of loans this organization has raised through the Kiva website. This excludes refunded loans.
  6. Term:
    Defn
  7. Default Rate:
    Percentage of Ended Loans (no longer paying back) which have failed to repay (measured in dollar volume, not units).


    How this is calculated:


    Amount of Ended Loans Defaulted / Amount of Ended Loans


    Notes:


    • Many Field Partners do not yet have many Ended Loans due to their short history on Kiva (see "Time on Kiva"). A more meaningful indicator of principal risk is "Delinquency Rate".

    • For loans that are delinquent at the end of a loan term, Kiva allows the Field Partner 6 additional months to attempt collections before deeming the loan as Defaulted.


  8. 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.

  9. Amount of Paying Back Loans Delinquent:
    Current principal balance of all Paying Back Loans with one or more repayments past due.


    How this is calculated:


    • Once a loan becomes Paying Back, repayments are expected according to a monthly schedule established by the field partner at the time of loan posting.

    • The first monthly installment is due on a date established by the partner.

    • The partner has between one to two months after collecting from the entrepreneur to send Kiva the repayments.

    • When Kiva receives the repayments, they mark the payment as received and return that money to the lenders.

    • If an installment has not been fully repaid and is past due, the remaining principal balance is considered late



    Example with a $1000 loan paid evenly over a 10 month loan term, that becomes Paying Back on January 1 and has its first repayment on January 30:


    • The monthly installment due = $100 ($1000 loan amount / 10 month term).

    • The first monthly installment is due to the partner on January 30. Kiva invoices the partner for the payment on February 15 and expects to receive this payment by March 1.

    • On March 2, assume that only $50 of the expected $100 installment is repaid.

    • On March 2, the "Amount of Paying Back Loans Late" = $950 (the remaining principal balance).

    • On March 3, assume that the other $50 is repaid and the January installment due is repaid in full.

    • On March 4, the "Amount of Paying Back Loans Late" = $0


  10. Amount of Paying Back Loans:
    Total amount of loans raised and disbursed which are in the process of being paid back by an entrepreneur.
  11. Amount of Ended Loans Defaulted:
    Remaining balance due on ended loans which are not repaid in full.
  12. Amount of Ended Loans:
    Total amount of loans raised and disbursed which are no longer in the process of being paid back by an entrepreneur. This excludes refunded loans.
  13. Amount of Currency Exchange Loss:
    Amount of loans not repaid due to currency fluctuations.


    When lending funds across national boundaries, the local currency in the Field Partner's country of operation may lose some of its value relative to the USD, thus requiring the Field Partner to use more of its local currency to reimburse Kiva in USD. Kiva offers Field Partners the option to protect themselves against severe currency fluctuations (a US dollar appreciation of over 10% relative to the local currency) by sharing any losses greater than 10% with Kiva lenders.* By bearing these losses, lenders are able to protect the Field Partner and its borrowers from catastrophic currency devaluations.
  14. Currency Exchange Loss Rate:
    The percentage of loans for which losses have been realized due to currency fluctuations.


    How this is calculated:

    Amount of Currency Exchange Loss / Total Loans