Melanie is 42 years old and married with two children. With both children in school, she works very hard to provide for them.
She runs a general store in the Philippines and requested a PHP 20,000 loan through NWTF to buy items, like canned goods and personal care products, to sell in her general store.
Melanie would like to save enough money so she could afford to send her children to college.
Adding to basket
Fund a loan, get repaid, fund another.
?
How Kiva works
Choose a borrower
Browse categories of borrowers— people looking to grow businesses, go to school, switch to clean energy and more.
Repeat!
Use the repayment to support another borrower, or withdraw your money.
Tap
Make a loan
Select a borrower who you connect with and help fund a loan with as little as $25.
Get repaid
Receive updates on your loans and see the dollars return to your Kiva account.
Choose a borrower
Browse categories of borrowers— people looking to grow businesses, go to school, switch to clean energy, and more.
Make a loan
Select a borrower who you connect with and help fund a loan with as little as $25.
Get repaid
Receive updates on your loans and see the dollars return to your Kiva account.
Repeat!
Use the repayment to support another borrower, or withdraw your money.
Learn more about how Kiva works
A loan of $425 helps to buy items, like canned goods and personal care products, to sell in her general store.
Melanie's story
This loan is special because:
It helps this borrower grow their business.
Mark McDonagh, Kiva staff
Mark McDonagh
Kiva staff
More about this loan
About Negros Women for Tomorrow Foundation (NWTF):
Negros Women for Tomorrow Foundation (NWTF) is a non-governmental organization established with the aim to help women achieve self-sufficiency, particularly in the province of Negros Occidental's low-income communities. The organization offers its clients a wide variety of products, including loans for micro-entrepreneurs, hospital income benefits, life insurance, accidental death benefits and more. Kiva lenders' funds will be used to expand the reach of these products to low-income urban and rural communities.
Loan details
Loan length:
14 months
Repayment schedule:
Monthly
Disbursed date:
November 20, 2020
Funding model:
Flexible
Facilitated by Field Partner:
Negros Women for Tomorrow Foundation (NWTF)
Repayment schedule
A loan's repayment schedule describes the frequency with which repayments are sent to Kiva lenders:
Monthly: One repayment made per month
End of term: One repayment made at the end of the loan term
Irregular: Any other repayment schedule
To see a detailed repayment schedule for a specific loan, click the "Repayment schedule" link on the loan profile under "Loan details."
What is the disbursed date?
The disbursed date indicates the date that the borrower receives their loan funds. Loan disbursal for loans on Kiva can happen anywhere from 30 days before to 90 days after the loan is posted on the Kiva website. Direct loans are always post-disbursed, and will be done only after the loan has fully fundraised on Kiva.
In the case of partner loans, many of our Field Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Field Partners assume the risk that, if the loan isn't funded by lenders, they will have to fund the loan without any funds from Kiva.
If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Field Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.
In the case of partner loans, many of our Field Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Field Partners assume the risk that, if the loan isn't funded by lenders, they will have to fund the loan without any funds from Kiva.
If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Field Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.
Funding model
Every loan has only 30 days to fundraise on Kiva. There are 2 different options for how that funding is sent to the field:
Fixed: the total loan amount must be raised in order for funds to be sent to the Field Partner. If the loan is not funded in full within the fundraising period, the loan will expire and any funds raised will be returned to lenders' Kiva accounts.
Flexible: any funds raised within 30 days will be passed along to the Field Partner facilitating the loan and they will come up with other sources of funding to cover the rest of the loan amount.
What does "Partner covers currency loss" mean & how could it affect my Kiva loans?
When lending internationally, the local currency in a borrower's country may lose some of its value compared to the US dollar -- requiring the partner to use more of its local currency to repay Kiva in USD. We offer some Field Partners the option to protect themselves against currency fluctuations by choosing to pass on these losses to Kiva lenders. By bearing this risk, lenders protect the partner and its borrowers from catastrophic currency devaluations and contribute to the sustainability of their operations.
Potential for currency exchange loss is noted on every loan profile under the loan details:
"Yes" means the Field Partner will cover any currency loss. Lenders will not bear losses due to currency fluctuation
"Partial" means that the Field Partner has opted to cover losses only up to 10%. If the U.S. dollar appreciates more than 10% against the local currency, those losses will be passed onto lenders.
"No" means that the Field Partner is not covering any currency losses and all losses will be passed onto lenders.
"N/A" means the Field Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.
Potential for currency exchange loss is noted on every loan profile under the loan details:
"Yes" means the Field Partner will cover any currency loss. Lenders will not bear losses due to currency fluctuation
"Partial" means that the Field Partner has opted to cover losses only up to 10%. If the U.S. dollar appreciates more than 10% against the local currency, those losses will be passed onto lenders.
"No" means that the Field Partner is not covering any currency losses and all losses will be passed onto lenders.
"N/A" means the Field Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.
Do Kiva borrowers pay any interest on their loans?
Yes, most Kiva borrowers do pay interest to our Field Partners in some form. Kiva and Kiva lenders themselves do not receive interest on these loans.
Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Field Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.
Kiva will not partner with an organization that charges unreasonable interest rates, and we require Field Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.
There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.
Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Field Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.
Kiva will not partner with an organization that charges unreasonable interest rates, and we require Field Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.
There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.
What is a risk rating?
There are many levels of risk associated with Kiva loans, which are explained on our website here: kiva.org/about/risk
The Field Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Field Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information displayed in the Field Partner section of every loan. Field Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Field Partner?"
Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.
The Field Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Field Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information displayed in the Field Partner section of every loan. Field Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Field Partner?"
Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.
How are loans facilitated?
Kiva loans are facilitated through 2 models, partner and direct, that enable us to reach the greatest number of people around the world.
For partner loans, borrowers apply to a local Field Partner, which manages the loan on the ground. Field Partners are responsible for screening borrowers, disbursing loans, posting borrowers to the Kiva website for funding, collecting repayments and otherwise administering Kiva loans on the ground to borrowers.
For direct loans, borrowers apply through the Kiva website and may or may not be endorsed by a Trustee. Unlike Field Partners, Trustees don't handle any financial transactions or have any duty to repay loans on behalf of their borrowers. Instead, Trustees take the role of providing support and business advice to their borrowers throughout the term of the loan.
More information about successive and concurrent loans
Field Partners often work with borrowers over time to help them build credit and expand their businesses. In order to make it easier for partners to post loans for borrowers who have been listed on Kiva before, we allow some partners the ability to relist a loan without having to re-enter all of the borrower's information. When this occurs, you'll see an updated loan description, as well as excerpts of the original descriptions from an earlier loan.
Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Field Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These additional loans are typically smaller than the borrower's primary loan and serve a different purpose. We trust our partners to determine whether a borrower has the means to be able to repay a successive or concurrent loan.
Lenders and lending teams
Country: Philippines
Field Partner: Negros Women for Tomorrow Foundation (NWTF)
Why Kiva works with this partner:
Kiva partners with NWTF due to the organization’s outreach to women in rural communities. NWTF also continues to conduct research on the satisfaction of its clients and staff, and has been especially attentive to issues of social responsibility. Additionally, it views commitments to environmental responsibility as an essential part of its operations.
Time on Kiva:
138 months
Kiva borrowers:
271,663
Total loans:
$82,549,300
Average cost to borrower:
46% PY
Delinquency rate:
3.57%
Loans at risk rate:
13.32%
Default rate:
0.02%
Currency exchange loss rate:
0.01%
Average cost to borrower (PY)
Many of Kiva's Field Partners do charge borrowers in some form in order to make possible the long-term sustainability of their operations, reach and impact. For this specific Field Partner, Kiva displays portfolio yield (PY), which is equal to a Field Partner's financial earnings divided by its average loan portfolio outstanding during a given year. Currently, Kiva displays portfolio yield for most of its Field Partners that are microfinance institutions (MFIs). Portfolio yield applies to the institution as a whole, and thus is a proxy for cost to borrowers rather than a direct measurement. Kiva calculates portfolio yield directly from the most recently available financial statements of a Field Partner and compares this result with other publicly available sources of pricing information such as mixmarket.org and mftransparency.org.
For more information, please visit: What do “Average cost to borrower” and “PY” mean?
What does "Profitability (Return on Assets)" mean?
"Return on Assets" is an indication of a Field Partner's profitability. It can also be an indicator of the long-term sustainability of an organization, as organizations consistently operating at a loss (those that have a negative return on assets) may not be able to sustain their operations over time.
Average loan size (% of per capita income)
A Field Partner's average loan size is expressed as a percentage of the country's gross national annual income per capita. Loans that are smaller (that is, as a lower percentage of gross national income per capita) are generally made to more economically disadvantaged populations. However, these same loans are generally more costly for the Field Partner to originate, disburse and collect.
Partner delinquency (arrears) rate
Kiva defines a partner's delinquency (arrears) rate as the amount of late payments divided by the total outstanding principal balance Kiva has with the Field Partner. Arrears can result from late repayments from Kiva borrowers as well as delayed payments from the Field Partner.
How this is calculated: delinquency (arrears) rate = $ value of payments past due of delinquent paying back loans / outstanding $ value of all paying back loans
How this is calculated: delinquency (arrears) rate = $ value of payments past due of delinquent paying back loans / outstanding $ value of all paying back loans
Loans at risk rate
The loans at risk rate refers to the percentage of Kiva loans being paid back by this Field Partner that are past due in repayment by at least 1 day (also known as arrears). This delinquency can be due to either non-payment by Kiva borrowers or non-payment by the Field Partner itself.
Loans at risk rate = outstanding $ value of delinquent paying back loans / outstanding $ value of all paying back loans
Example: A partner has fives loans that are in “paying back” status and the loan amount for each is $100. All of the loans have first installments of $10. One borrower repays only $9 and hence, his loan is in arrears. The other four borrowers repay $10. The loans at risk rate is 91 / 451 = 20.18%.
The loans at risk rate is an aggregate that does not distinguish between borrower delinquency and partner delinquency. So in the example above, the loans at risk rate will be 20.18% regardless of whether it is the borrower or partner that is behind in repayments.
Field Partner's default rate
The default rate is the percentage of ended loans (no longer paying back) which have failed to
repay (measured in dollar volume, not units).
How this is calculated: default rate = 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"). If this is the case, a more meaningful indicator of principal risk is "delinquency rate."
- At Kiva, we define default (non-repayment) as: the time when Kiva determines that collection of funds from a borrower or partner is doubtful, or the cumulative amount repaid as of a quarterly reconciliation is less than the amount expected as of 180 days prior and there have been no repayments reported to Kiva during this time. . Kiva typically processes defaults on a quarterly basis, and case by case exceptions may be made if the partner or Kiva anticipates future repayments to be made on the loan. Field Partners also have the option to default loans at any time, should they determine that further collection of loan repayments from the borrower is unlikely.
How this is calculated: default rate = 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"). If this is the case, a more meaningful indicator of principal risk is "delinquency rate."
- At Kiva, we define default (non-repayment) as: the time when Kiva determines that collection of funds from a borrower or partner is doubtful, or the cumulative amount repaid as of a quarterly reconciliation is less than the amount expected as of 180 days prior and there have been no repayments reported to Kiva during this time. . Kiva typically processes defaults on a quarterly basis, and case by case exceptions may be made if the partner or Kiva anticipates future repayments to be made on the loan. Field Partners also have the option to default loans at any time, should they determine that further collection of loan repayments from the borrower is unlikely.
What's a Field Partner?
Kiva is able to reach more borrowers in some of the most remote places around the world through our global network of Field Partners. These partners are local organizations working in communities to vet borrowers, disburse loans, collect repayments, provide services and administer loans on the ground in general.
Our Field Partners are nonprofit organizations, microfinance institutions, schools, and social enterprises. Many provide services alongside their loans, such as entrepreneurial training or finanical literacy development. Our partners all share one thing in common: a desire to improve people's lives through access to safe and affordable credit. You can see a list of Kiva Field Partners here: kiva.org/partners
Our Field Partners are nonprofit organizations, microfinance institutions, schools, and social enterprises. Many provide services alongside their loans, such as entrepreneurial training or finanical literacy development. Our partners all share one thing in common: a desire to improve people's lives through access to safe and affordable credit. You can see a list of Kiva Field Partners here: kiva.org/partners
Repayment schedule
Repayment schedule
| Expected | Actual | Comments | |
|---|---|---|---|
| Mar 2021 | $85.00 | Available Mar 1 | |
| Apr 2021 | $34.00 | Available Apr 1 | |
| May 2021 | $42.50 | Available May 1 | |
| Jun 2021 | $34.00 | Available Jun 1 | |
| Jul 2021 | $34.00 | Available Jul 1 | |
| Aug 2021 | $42.50 | Available Aug 1 | |
| Sep 2021 | $34.00 | Available Sep 1 | |
| Oct 2021 | $34.00 | Available Oct 1 | |
| Nov 2021 | $42.50 | Available Nov 1 | |
| Dec 2021 | $34.00 | Available Dec 1 | |
| Jan 2022 | $8.50 | Available Jan 1 |
| Expected | Amount | Actual | Received | Comments | |
|---|---|---|---|---|---|
| Mar 2021 | |||||
| From borrower to Field Partner | Nov 25, 2020 | 408.48 PHP | |||
| Dec 2, 2020 | 408.48 PHP | ||||
| Dec 9, 2020 | 408.48 PHP | ||||
| Dec 16, 2020 | 408.48 PHP | ||||
| Dec 23, 2020 | 408.48 PHP | ||||
| Dec 30, 2020 | 408.48 PHP | ||||
| Jan 6, 2021 | 408.48 PHP | ||||
| Jan 13, 2021 | 408.48 PHP | ||||
| Jan 20, 2021 | 408.48 PHP | ||||
| Jan 27, 2021 | 408.48 PHP | ||||
| From Field Partner to lenders | Mar 2021 | $85.00 | Available Mar 1 | ||
| Apr 2021 | |||||
| From borrower to Field Partner | Feb 3, 2021 | 408.48 PHP | |||
| Feb 10, 2021 | 408.48 PHP | ||||
| Feb 17, 2021 | 408.47 PHP | ||||
| Feb 24, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Apr 2021 | $34.00 | Available Apr 1 | ||
| May 2021 | |||||
| From borrower to Field Partner | Mar 3, 2021 | 408.47 PHP | |||
| Mar 10, 2021 | 408.47 PHP | ||||
| Mar 17, 2021 | 408.47 PHP | ||||
| Mar 24, 2021 | 408.47 PHP | ||||
| Mar 31, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | May 2021 | $42.50 | Available May 1 | ||
| Jun 2021 | |||||
| From borrower to Field Partner | Apr 7, 2021 | 408.47 PHP | |||
| Apr 14, 2021 | 408.47 PHP | ||||
| Apr 21, 2021 | 408.47 PHP | ||||
| Apr 28, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Jun 2021 | $34.00 | Available Jun 1 | ||
| Jul 2021 | |||||
| From borrower to Field Partner | May 5, 2021 | 408.47 PHP | |||
| May 12, 2021 | 408.47 PHP | ||||
| May 19, 2021 | 408.47 PHP | ||||
| May 26, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Jul 2021 | $34.00 | Available Jul 1 | ||
| Aug 2021 | |||||
| From borrower to Field Partner | Jun 2, 2021 | 408.47 PHP | |||
| Jun 9, 2021 | 408.47 PHP | ||||
| Jun 16, 2021 | 408.47 PHP | ||||
| Jun 23, 2021 | 408.47 PHP | ||||
| Jun 30, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Aug 2021 | $42.50 | Available Aug 1 | ||
| Sep 2021 | |||||
| From borrower to Field Partner | Jul 7, 2021 | 408.47 PHP | |||
| Jul 14, 2021 | 408.47 PHP | ||||
| Jul 21, 2021 | 408.47 PHP | ||||
| Jul 28, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Sep 2021 | $34.00 | Available Sep 1 | ||
| Oct 2021 | |||||
| From borrower to Field Partner | Aug 4, 2021 | 408.47 PHP | |||
| Aug 11, 2021 | 408.47 PHP | ||||
| Aug 18, 2021 | 408.47 PHP | ||||
| Aug 25, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Oct 2021 | $34.00 | Available Oct 1 | ||
| Nov 2021 | |||||
| From borrower to Field Partner | Sep 1, 2021 | 408.47 PHP | |||
| Sep 8, 2021 | 408.47 PHP | ||||
| Sep 15, 2021 | 408.47 PHP | ||||
| Sep 22, 2021 | 408.47 PHP | ||||
| Sep 29, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Nov 2021 | $42.50 | Available Nov 1 | ||
| Dec 2021 | |||||
| From borrower to Field Partner | Oct 6, 2021 | 408.47 PHP | |||
| Oct 13, 2021 | 408.47 PHP | ||||
| Oct 20, 2021 | 408.47 PHP | ||||
| Oct 27, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Dec 2021 | $34.00 | Available Dec 1 | ||
| Jan 2022 | |||||
| From borrower to Field Partner | Nov 3, 2021 | 408.47 PHP | |||
| From Field Partner to lenders | Jan 2022 | $8.50 | Available Jan 1 | ||
*This loan is impacted by the COVID-19 crisis and your support is needed more than ever. Repayments may be delayed or lower than expected.
Loan details
Loan length:
14 months
Repayment schedule:
Monthly
Disbursed date:
November 20, 2020
Funding model:
Flexible
Facilitated by Field Partner:
Negros Women for Tomorrow Foundation (NWTF)
Repayment schedule
A loan's repayment schedule describes the frequency with which repayments are sent to Kiva lenders:
Monthly: One repayment made per month
End of term: One repayment made at the end of the loan term
Irregular: Any other repayment schedule
To see a detailed repayment schedule for a specific loan, click the "Repayment schedule" link on the loan profile under "Loan details."
What is the disbursed date?
The disbursed date indicates the date that the borrower receives their loan funds. Loan disbursal for loans on Kiva can happen anywhere from 30 days before to 90 days after the loan is posted on the Kiva website. Direct loans are always post-disbursed, and will be done only after the loan has fully fundraised on Kiva.
In the case of partner loans, many of our Field Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Field Partners assume the risk that, if the loan isn't funded by lenders, they will have to fund the loan without any funds from Kiva.
If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Field Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.
In the case of partner loans, many of our Field Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Field Partners assume the risk that, if the loan isn't funded by lenders, they will have to fund the loan without any funds from Kiva.
If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Field Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.
Funding model
Every loan has only 30 days to fundraise on Kiva. There are 2 different options for how that funding is sent to the field:
Fixed: the total loan amount must be raised in order for funds to be sent to the Field Partner. If the loan is not funded in full within the fundraising period, the loan will expire and any funds raised will be returned to lenders' Kiva accounts.
Flexible: any funds raised within 30 days will be passed along to the Field Partner facilitating the loan and they will come up with other sources of funding to cover the rest of the loan amount.
What does "Partner covers currency loss" mean & how could it affect my Kiva loans?
When lending internationally, the local currency in a borrower's country may lose some of its value compared to the US dollar -- requiring the partner to use more of its local currency to repay Kiva in USD. We offer some Field Partners the option to protect themselves against currency fluctuations by choosing to pass on these losses to Kiva lenders. By bearing this risk, lenders protect the partner and its borrowers from catastrophic currency devaluations and contribute to the sustainability of their operations.
Potential for currency exchange loss is noted on every loan profile under the loan details:
"Yes" means the Field Partner will cover any currency loss. Lenders will not bear losses due to currency fluctuation
"Partial" means that the Field Partner has opted to cover losses only up to 10%. If the U.S. dollar appreciates more than 10% against the local currency, those losses will be passed onto lenders.
"No" means that the Field Partner is not covering any currency losses and all losses will be passed onto lenders.
"N/A" means the Field Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.
Potential for currency exchange loss is noted on every loan profile under the loan details:
"Yes" means the Field Partner will cover any currency loss. Lenders will not bear losses due to currency fluctuation
"Partial" means that the Field Partner has opted to cover losses only up to 10%. If the U.S. dollar appreciates more than 10% against the local currency, those losses will be passed onto lenders.
"No" means that the Field Partner is not covering any currency losses and all losses will be passed onto lenders.
"N/A" means the Field Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.
Do Kiva borrowers pay any interest on their loans?
Yes, most Kiva borrowers do pay interest to our Field Partners in some form. Kiva and Kiva lenders themselves do not receive interest on these loans.
Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Field Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.
Kiva will not partner with an organization that charges unreasonable interest rates, and we require Field Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.
There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.
Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Field Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.
Kiva will not partner with an organization that charges unreasonable interest rates, and we require Field Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.
There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.
What is a risk rating?
There are many levels of risk associated with Kiva loans, which are explained on our website here: kiva.org/about/risk
The Field Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Field Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information displayed in the Field Partner section of every loan. Field Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Field Partner?"
Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.
The Field Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Field Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information displayed in the Field Partner section of every loan. Field Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Field Partner?"
Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.
How are loans facilitated?
Kiva loans are facilitated through 2 models, partner and direct, that enable us to reach the greatest number of people around the world.
For partner loans, borrowers apply to a local Field Partner, which manages the loan on the ground. Field Partners are responsible for screening borrowers, disbursing loans, posting borrowers to the Kiva website for funding, collecting repayments and otherwise administering Kiva loans on the ground to borrowers.
For direct loans, borrowers apply through the Kiva website and may or may not be endorsed by a Trustee. Unlike Field Partners, Trustees don't handle any financial transactions or have any duty to repay loans on behalf of their borrowers. Instead, Trustees take the role of providing support and business advice to their borrowers throughout the term of the loan.
More information about successive and concurrent loans
Field Partners often work with borrowers over time to help them build credit and expand their businesses. In order to make it easier for partners to post loans for borrowers who have been listed on Kiva before, we allow some partners the ability to relist a loan without having to re-enter all of the borrower's information. When this occurs, you'll see an updated loan description, as well as excerpts of the original descriptions from an earlier loan.
Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Field Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These additional loans are typically smaller than the borrower's primary loan and serve a different purpose. We trust our partners to determine whether a borrower has the means to be able to repay a successive or concurrent loan.
Field Partner: Negros Women for Tomorrow Foundation (NWTF)
Why Kiva works with this partner:
Kiva partners with NWTF due to the organization’s outreach to women in rural communities. NWTF also continues to conduct research on the satisfaction of its clients and staff, and has been especially attentive to issues of social responsibility. Additionally, it views commitments to environmental responsibility as an essential part of its operations.
Time on Kiva:
138 months
Kiva borrowers:
271,663
Total loans:
$82,549,300
Average cost to borrower:
46% PY
Delinquency rate:
3.57%
Loans at risk rate:
13.32%
Default rate:
0.02%
Currency exchange loss rate:
0.01%
Average cost to borrower (PY)
Many of Kiva's Field Partners do charge borrowers in some form in order to make possible the long-term sustainability of their operations, reach and impact. For this specific Field Partner, Kiva displays portfolio yield (PY), which is equal to a Field Partner's financial earnings divided by its average loan portfolio outstanding during a given year. Currently, Kiva displays portfolio yield for most of its Field Partners that are microfinance institutions (MFIs). Portfolio yield applies to the institution as a whole, and thus is a proxy for cost to borrowers rather than a direct measurement. Kiva calculates portfolio yield directly from the most recently available financial statements of a Field Partner and compares this result with other publicly available sources of pricing information such as mixmarket.org and mftransparency.org.
For more information, please visit: What do “Average cost to borrower” and “PY” mean?
What does "Profitability (Return on Assets)" mean?
"Return on Assets" is an indication of a Field Partner's profitability. It can also be an indicator of the long-term sustainability of an organization, as organizations consistently operating at a loss (those that have a negative return on assets) may not be able to sustain their operations over time.
Average loan size (% of per capita income)
A Field Partner's average loan size is expressed as a percentage of the country's gross national annual income per capita. Loans that are smaller (that is, as a lower percentage of gross national income per capita) are generally made to more economically disadvantaged populations. However, these same loans are generally more costly for the Field Partner to originate, disburse and collect.
Partner delinquency (arrears) rate
Kiva defines a partner's delinquency (arrears) rate as the amount of late payments divided by the total outstanding principal balance Kiva has with the Field Partner. Arrears can result from late repayments from Kiva borrowers as well as delayed payments from the Field Partner.
How this is calculated: delinquency (arrears) rate = $ value of payments past due of delinquent paying back loans / outstanding $ value of all paying back loans
How this is calculated: delinquency (arrears) rate = $ value of payments past due of delinquent paying back loans / outstanding $ value of all paying back loans
Loans at risk rate
The loans at risk rate refers to the percentage of Kiva loans being paid back by this Field Partner that are past due in repayment by at least 1 day (also known as arrears). This delinquency can be due to either non-payment by Kiva borrowers or non-payment by the Field Partner itself.
Loans at risk rate = outstanding $ value of delinquent paying back loans / outstanding $ value of all paying back loans
Example: A partner has fives loans that are in “paying back” status and the loan amount for each is $100. All of the loans have first installments of $10. One borrower repays only $9 and hence, his loan is in arrears. The other four borrowers repay $10. The loans at risk rate is 91 / 451 = 20.18%.
The loans at risk rate is an aggregate that does not distinguish between borrower delinquency and partner delinquency. So in the example above, the loans at risk rate will be 20.18% regardless of whether it is the borrower or partner that is behind in repayments.
Field Partner's default rate
The default rate is the percentage of ended loans (no longer paying back) which have failed to
repay (measured in dollar volume, not units).
How this is calculated: default rate = 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"). If this is the case, a more meaningful indicator of principal risk is "delinquency rate."
- At Kiva, we define default (non-repayment) as: the time when Kiva determines that collection of funds from a borrower or partner is doubtful, or the cumulative amount repaid as of a quarterly reconciliation is less than the amount expected as of 180 days prior and there have been no repayments reported to Kiva during this time. . Kiva typically processes defaults on a quarterly basis, and case by case exceptions may be made if the partner or Kiva anticipates future repayments to be made on the loan. Field Partners also have the option to default loans at any time, should they determine that further collection of loan repayments from the borrower is unlikely.
How this is calculated: default rate = 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"). If this is the case, a more meaningful indicator of principal risk is "delinquency rate."
- At Kiva, we define default (non-repayment) as: the time when Kiva determines that collection of funds from a borrower or partner is doubtful, or the cumulative amount repaid as of a quarterly reconciliation is less than the amount expected as of 180 days prior and there have been no repayments reported to Kiva during this time. . Kiva typically processes defaults on a quarterly basis, and case by case exceptions may be made if the partner or Kiva anticipates future repayments to be made on the loan. Field Partners also have the option to default loans at any time, should they determine that further collection of loan repayments from the borrower is unlikely.
What's a Field Partner?
Kiva is able to reach more borrowers in some of the most remote places around the world through our global network of Field Partners. These partners are local organizations working in communities to vet borrowers, disburse loans, collect repayments, provide services and administer loans on the ground in general.
Our Field Partners are nonprofit organizations, microfinance institutions, schools, and social enterprises. Many provide services alongside their loans, such as entrepreneurial training or finanical literacy development. Our partners all share one thing in common: a desire to improve people's lives through access to safe and affordable credit. You can see a list of Kiva Field Partners here: kiva.org/partners
Our Field Partners are nonprofit organizations, microfinance institutions, schools, and social enterprises. Many provide services alongside their loans, such as entrepreneurial training or finanical literacy development. Our partners all share one thing in common: a desire to improve people's lives through access to safe and affordable credit. You can see a list of Kiva Field Partners here: kiva.org/partners
Repayment schedule
Repayment schedule
| Expected | Actual | Comments | |
|---|---|---|---|
| Mar 2021 | $85.00 | Available Mar 1 | |
| Apr 2021 | $34.00 | Available Apr 1 | |
| May 2021 | $42.50 | Available May 1 | |
| Jun 2021 | $34.00 | Available Jun 1 | |
| Jul 2021 | $34.00 | Available Jul 1 | |
| Aug 2021 | $42.50 | Available Aug 1 | |
| Sep 2021 | $34.00 | Available Sep 1 | |
| Oct 2021 | $34.00 | Available Oct 1 | |
| Nov 2021 | $42.50 | Available Nov 1 | |
| Dec 2021 | $34.00 | Available Dec 1 | |
| Jan 2022 | $8.50 | Available Jan 1 |
| Expected | Amount | Actual | Received | Comments | |
|---|---|---|---|---|---|
| Mar 2021 | |||||
| From borrower to Field Partner | Nov 25, 2020 | 408.48 PHP | |||
| Dec 2, 2020 | 408.48 PHP | ||||
| Dec 9, 2020 | 408.48 PHP | ||||
| Dec 16, 2020 | 408.48 PHP | ||||
| Dec 23, 2020 | 408.48 PHP | ||||
| Dec 30, 2020 | 408.48 PHP | ||||
| Jan 6, 2021 | 408.48 PHP | ||||
| Jan 13, 2021 | 408.48 PHP | ||||
| Jan 20, 2021 | 408.48 PHP | ||||
| Jan 27, 2021 | 408.48 PHP | ||||
| From Field Partner to lenders | Mar 2021 | $85.00 | Available Mar 1 | ||
| Apr 2021 | |||||
| From borrower to Field Partner | Feb 3, 2021 | 408.48 PHP | |||
| Feb 10, 2021 | 408.48 PHP | ||||
| Feb 17, 2021 | 408.47 PHP | ||||
| Feb 24, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Apr 2021 | $34.00 | Available Apr 1 | ||
| May 2021 | |||||
| From borrower to Field Partner | Mar 3, 2021 | 408.47 PHP | |||
| Mar 10, 2021 | 408.47 PHP | ||||
| Mar 17, 2021 | 408.47 PHP | ||||
| Mar 24, 2021 | 408.47 PHP | ||||
| Mar 31, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | May 2021 | $42.50 | Available May 1 | ||
| Jun 2021 | |||||
| From borrower to Field Partner | Apr 7, 2021 | 408.47 PHP | |||
| Apr 14, 2021 | 408.47 PHP | ||||
| Apr 21, 2021 | 408.47 PHP | ||||
| Apr 28, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Jun 2021 | $34.00 | Available Jun 1 | ||
| Jul 2021 | |||||
| From borrower to Field Partner | May 5, 2021 | 408.47 PHP | |||
| May 12, 2021 | 408.47 PHP | ||||
| May 19, 2021 | 408.47 PHP | ||||
| May 26, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Jul 2021 | $34.00 | Available Jul 1 | ||
| Aug 2021 | |||||
| From borrower to Field Partner | Jun 2, 2021 | 408.47 PHP | |||
| Jun 9, 2021 | 408.47 PHP | ||||
| Jun 16, 2021 | 408.47 PHP | ||||
| Jun 23, 2021 | 408.47 PHP | ||||
| Jun 30, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Aug 2021 | $42.50 | Available Aug 1 | ||
| Sep 2021 | |||||
| From borrower to Field Partner | Jul 7, 2021 | 408.47 PHP | |||
| Jul 14, 2021 | 408.47 PHP | ||||
| Jul 21, 2021 | 408.47 PHP | ||||
| Jul 28, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Sep 2021 | $34.00 | Available Sep 1 | ||
| Oct 2021 | |||||
| From borrower to Field Partner | Aug 4, 2021 | 408.47 PHP | |||
| Aug 11, 2021 | 408.47 PHP | ||||
| Aug 18, 2021 | 408.47 PHP | ||||
| Aug 25, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Oct 2021 | $34.00 | Available Oct 1 | ||
| Nov 2021 | |||||
| From borrower to Field Partner | Sep 1, 2021 | 408.47 PHP | |||
| Sep 8, 2021 | 408.47 PHP | ||||
| Sep 15, 2021 | 408.47 PHP | ||||
| Sep 22, 2021 | 408.47 PHP | ||||
| Sep 29, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Nov 2021 | $42.50 | Available Nov 1 | ||
| Dec 2021 | |||||
| From borrower to Field Partner | Oct 6, 2021 | 408.47 PHP | |||
| Oct 13, 2021 | 408.47 PHP | ||||
| Oct 20, 2021 | 408.47 PHP | ||||
| Oct 27, 2021 | 408.47 PHP | ||||
| From Field Partner to lenders | Dec 2021 | $34.00 | Available Dec 1 | ||
| Jan 2022 | |||||
| From borrower to Field Partner | Nov 3, 2021 | 408.47 PHP | |||
| From Field Partner to lenders | Jan 2022 | $8.50 | Available Jan 1 | ||
*This loan is impacted by the COVID-19 crisis and your support is needed more than ever. Repayments may be delayed or lower than expected.
You are opting out of using Free Trial.
You have selected to not use your Free Trial and will be prompted to pay for this loan using your own money.
Agree Use a Free TrialShoot! This loan is ineligible.
Your free credit can't be applied to this loan. If you would like to make a loan to this borrower anyway, you will have to use your own money.
Lend Anyway Find an Eligible LoanYou cannot use your Free Trial to support this loan.
Free Trials cannot be used to make loans during their private fundraising period on Kiva. If you would like to lend to this borrower anyway, you will have to use your own money.
Agree Find an Eligible Loan
Comments and updates (0)
Hide
What are comments?