Fundraising Status:closed
Risk Rating:
What to know about this Lending Partner
Impact Category:
General Financial Inclusion
Default Rate:
0%
Currency Exchange Loss Rate:
0.16%
Total Loans Raised:
$162,225
Loans at Risk Rate:
0%
Kiva Borrowers:
232
Delinquency Rate:
0%
Interests and Fees:
42% APR
Kiva and Konfío have agreed to end their partnership after nearly 4 years and more than $160K in loans raised. This Lending Partner has shifted its focus to serve less disadvantaged populations, and therefore no longer fits Kiva's model for impact. Konfio has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank Konfio for the years of collaboration and wish them success in their future endeavors.
Partner Description:
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.