A Kivawalk Update from Jonathon Stalls & his dog

It's been 7 months since Jonathon Stalls completed his incredible cross-country Kivawalk. His 3,030 mile journey inspired countless supporters across the country and reminded us to enjoy every step that life allows us. Although his Kivawalk adventure has come to an end, Jonathon continues to support Kiva and other causes in his Colorado community. In a special update below, we find out more about what Jonathon has been doing since the completion of his walk in November 2010.

Kivawalk - 7 Months Later
A journal entry:

Post Walk (April 2, 2011) – “I’m working hard to hold onto the ‘magic’ of on-foot travel. To be honest, I truly miss it. Some days I dream about running downstairs, throwing on the pack, leashing up Kanoa (my mixed-breed dog) and just going ...somewhere. Knowing that last year’s daily tasks were to get 15 miles further down the road, eat enough almonds, drink enough water and share the good news about a mission we believe in. This trip was life-changing and held such high ground mentally, emotionally, spiritually and of course physically… there is something so good about traveling this way. I carry a deep challenge in believing that we are truly built to process and better understand ourselves and our surroundings on-foot. I still work hard to maintain 2-4 mile walks throughout the week with an occasional 8-10 mile day around the city of Denver. I’m always so thankful in blocking out the time for it, as it helps me unwind and refresh for the week ahead. I also must add that Kanoa works very hard (via chewing and digging) to tell me with great frustration “this walking around the block stuff isn’t going to cut it pal!!”

This transition has also carried great color since finishing our 9 month walk across the USA. I have been able to visit my incredible sister, Tracy Stalls, who is playing professional volleyball in Ankara, Turkey and several friends and family in Kansas, Georgia and Costa Rica. I have also soaked up the familiar streets and mountain air here in Colorado. I continue to write and reflect on our experience and am getting numerous opportunities to share its contents to students, educators and various dreamers. My ‘professional’ track is continuing to evolve. My heart craves to hold onto a pace and lifestyle of simplicity while continuing to share and prioritize quality time with the people I share it with.

In the spirit of moving forward and putting food on the table my current activities and goals are wrapped up in: building a business plan for a community space committed to social interaction, designing program for various local/global walking initiatives and supporting a local (Denver, CO) community organizing group (Metro Organizations for People) in communications & operations.

Thanks to EVERYONE for all your continued support. Also, our KivaWalk lending team (link below) is still blossoming. I would love to support and post any unique stories or pictures of anyone wanting to throw a sign on a backpack and continue on-foot awareness for Kiva (in your neighborhood, town or city). We have a strong following on Facebook & Twitter and are anxious to fuel the momentum!

Get in touch and/or follow our journey at the links below:

Contact me personally at: kivawalk@gmail.com
Lending Team: www.kiva.org/team/kiva_walk
Walk across USA: www.kivawalk.com

A quick favor?? Would you join me as I strive to hold onto the following challenge: KEEP WALKING!!! …with myself, with my pup, with friends, with strangers and with the air and smells that surround my home or office. Our communities need it. I’m bold enough to say that many of us need it too. I know I do.

Cheers for now,
Jonathon & Kanoa

First Kiva Lending Team Reaches $4 million in Loans!

We are thrilled to announce that for the first time in Kiva-history, a Lending Team has reached $4 million in loans! Congratulations to the Atheists, Agnostics, Skeptics, Freethinkers, Secular Humanists, and the Non-Religious Lending Team for recently reaching this milestone.

The team consists of 15,578 Kiva Lenders who have made over 134,548 loans totaling $4,053,725 in total amount loaned.

We want to thank all of the team members!

To find out more about this team, click here. To start your own Lending Team, click here.

Microfinance USA 2011 Conference - Register today!

Microfinance USA 2011 Conference - May 23-24, New York City

Join us in May for this great event! Kiva is proud to be co-presenting this year's conference with ACCION USA and Opportunity Fund. Early bird registration discount ends Friday 3/18!

Are you interested in local economic development? Are you passionate about being part of the growing microfinance movement in the U.S. - and interested in learning from industry experts about the impact you can make? If so, this conference is not to be missed. Microfinance USA provides a unique setting for networking and learning from the industry's top practitioners, funders, and researchers. 

Topics that will be discussed at this year's conference include:

• Understanding the Underbanked Consumer and the Future of Financial Services.

• Microfinance: Fair Profits or Plunder?

• Promise and Peril of Microfinance Impact Evaluations

Over two days, you can:

• Network with leading practitioners and researchers in the U.S. microfinance field

• Attend plenary sessions and panels led by the nation's leading microfinance voices.

• Deepen your understanding of the challenges facing Microfinance Institutions through case-study analysis.

• Experience microfinance first-hand by touring local microenterprises in New York.

• Debate current microfinance topics during small group sessions and networking dinners.

Fee: (EARLY BIRD DISCOUNT ENDS 3/18)

• Regular Price: $275

• Microfinance Professional/Representative of Company, Foundation or Organization: $350

• Student Price: $75

We hope to see you there!

For More Information email us or visit: http://www.microfinanceusaconference.org/home/

Family meets the Borrowers in Guatemala whose loan they helped fund!

Last December the Gobbi Family of five traveled to Guatemala for a fun-filled 2 weeks of vacation time. The family, long-time supporters of Kiva, decided they would include some time in their journey to do something extra special.  Before departing, the Gobbi Family logged on from their home in San Francisco and made a loan to a group of three women in Guatemala! The loan was used to purchase wholesale clothing for the women-run business. This loan was funded by 34 other Kiva lenders and is currently being repaid through our Field Partner, FAPE.

Father Greg Gobbi contacted our Field Partner, FAPE, and arrangements were made for the family to meet the 3 women they had helped. With some Spanish help from her father, the oldest daughter Marguerite, recited a message to the borrowers at their clothing store. (Watch their video to see this amazing moment for yourself!) The family also purchased a few items from the store and sent them to friends to encourage them to make a Kiva loan! 

Although the language barrier was a challenge, the family was honored to meet the women they had loaned to. "Kiva provides this very emotional direct emotional connection," Greg Gobbi said. The experience proved to be a wonderful lesson in community for the family. They were pleased with the willingness and enthusiasm of the FAPE employees to help them make the connection to the entrepreneurs.

Kiva would like to thank the Gobbi Family as well as FAPE for allowing this full-circle opportunity to take place. This is a real-life example of the interconnectedness that Kiva creates through microlending! Be a part of the community by making a loan to an entrepreneur today!

Featured Field Partner - KADET

Written by Anne-Marie Robles, Review and Translations Program Intern

Silole Sanamwala, a wheat farmer in Narok, Kenya, with her children Ruth and Alex.

Highlights

• Kiva Field Partner since: May 2009

• Loans through Kiva: $1,651,775

• Number of entrepreneurs assisted through Kiva: 3,373

• Focus: Micro and small business loan products for rural entrepreneurs

Kenya Agency for Development of Enterprise and Technology (KADET) was started in 2000 by World Vision, a Christian humanitarian organization dedicated to working with children, families, and impoverished communities worldwide. World Vision began working in Kenya in 1973. By the early 1980s their programs included agriculture, nutrition, education, water projects, medicine and flood relief. World Vision’s goal is to deliver access to financial services and economic development throughout Kenya, particularly the rural areas where half of the country’s population resides.

Varied entrepreneurs

KADET has 11 branches and 39 offices in Kenya and their clients’ economic activity varies across the country’s regions. In Narok and El Doret (in the South and North Rift Valley), wheat and corn farming is very common. In urban areas like Nairobi and Mombasa services and retail, such as barber shops, kiosks, and market stalls, are major business types. In the Central region and Naivasha most clients are farmers, raising rabbits or running greenhouses while in Kisumu in the Western part of Kenya fishing is the dominant industry and many clients are fishermen or work in supporting industries like restaurants, transportation, and selling fishing equipment.

Lilian Syonzia, a vegetable seller in Matuu, Kenya, with her daughter Ruth.

“Big house” group lending

Loan recipients of KADET are divided into groups. A large group of 15-30 independent entrepreneurs, known as the Jumba or “a big house” in Swahili, is formed. The large group is also subdivided into three to six groups of five entrepreneurs, referred to as the Nyumba meaning “a room in a house”. The Nyumba is the first guarantor of the loan and they exert pressure on the other members to pay. All members are also required to save 20% of the amount of the loan in a loan security fund. KADET facilitates the formation of groups by holding community meetings and marketing events. Group leaders go through training on group management before their loans are disbursed and KADET offers trainings once per year per branch to group leaders.

A spiritual influence

While they are open about being Christian, KADET’s lending methodology is not directly affected by their religious affiliation. Roughly 75% of Kenyans identify as Christian so it is not unusual for groups to start and end their loan meetings with a prayer, but that is for the group to decide. KADET does limit their lending to exclude businesses that are perceived to have a negative social impact, like bars.

Margaret Kisato with her kale in Vihiga, Kenya.

World Vision in Kenya

KADET believes that helping clients in rural areas has a stronger effect on communities – helping an entrepreneur access capital in a rural area keeps that person from moving to a city, where there may not be a job anyway, and also employs others in the community. Currently, agricultural loans make up 30% of KADET’s lending portfolio.

To lend to a KADET borrower like Silole, visit their lender page!

Photo provided by Tara Capsuto, Kiva Roaming Fellow KF13, Kenya

Passport Series: Meeting the Cambodian weaver in person

Written by Premal Shah, President, Kiva

In the last few weeks, we’ve blogged about Cambodia, its thriving microfinance industry, and featured a specific Kiva Field Partner. Last month, I had a chance to actually visit Cambodia. As my colleague Cissy De Luca noted, the trip allowed me to better understand the incredible ecosystem of people and institutions on the ground that Kiva's lenders, staff and volunteers support each day.

One highlight was the opportunity to meet Zongty Em, a Cambodian silk weaver whose loan I helped fund in February 2008. Zongty needed a $1,000 loan to help pay for:

a) raw silk (which she weaves and sells for profit) and

b) her eldest daughter's college tuition (she has 2 daughters)

Like most borrowers listed on Kiva, her loan was 100% funded and several months later was successfully repaid back. But after 3 years, I was curious to hear in her own words what kind of impact, if any, the loan had on her family's life?

Getting There

Zongty lives on Koh Dach island located in the Mekong River near the capital city of Phnom Pehn. Days earlier, I had read an excellent blog post by Kiva Fellow Lina Goldberg about the island's silk weaving history. Silk weaving was a craft passed down from grandmother to mother, mother to daughter for generations on the island. Indeed, Zongty's Kiva profile indicated that she had learned the craft from her mother (also pictured above). Now this tradition and income source were threatened by the increasing price of imported raw silk and decreasing price of finished silk textiles in the market.

Although the island was only 15 kilometers away, getting there took nearly 2 hours by car and ferry from the headquarters of MAXIMA, the Kiva Field Partner that administered Zongty's loan. I was accompanied by Pa Siry, a talented manager at MAXIMA who served as my interpreter and guide.

Meeting Zongty in person

Shortly after Pa Siry, our interpreter, explained the purpose of my visit to Zongty, I showed her a paper print-out of her Kiva profile. I love doing this when meeting Kiva borrowers. I've found time and again that one can break through language, culture and literacy barriers by focusing the initial conversation around a Kiva profile. There's seemingly a universal curiosity and enjoyment of seeing one's own photo, the photos of Kiva lenders, the recognizable logo of their microfinance institution and the world map with a Google 'pinpoint' over their country. The print out served as a great visual tool to help explain the connection between Zongty and myself.

Before asking Zongty about her weaving business and life, I offered a little about myself. I told her about my family, where I lived and how I earned a living. While she asked me questions, her mother came out to greet me and join our conversation.

Zongty's update -- 3 years after getting her loan

Life was a bit tighter economically for Zongty since 2008. A big factor was indeed the changing economics of silk weaving. For example, in 2000, 2 kg of raw silk cost $58 compared to $100 today. With rising raw silk costs and falling finished silk prices, Zongty decided to switch to weaving nylon. So each day, she produces a 3 x 1.2 meter nylon piece on her loom. This earns $3 in the market. Subtracting out $1.75 in raw nylon material cost, Zongty's daily take home profit is $1.25. It's a lot of work for a very little amount of money. To compound matters, Zongty described how the rising cost of food -- which has been a major problem in the last few years for the working poor worldwide -- has made making ends meet tougher. Her husband helps by working construction jobs when available, growing sugar cane and bananas, and fishing in a local pond for food. Together, they estimate earning $3 a day.

That said, she proudly told me about her children and their prospects for a better life. Zongty has two daughters. The $1,000 loan helped pay for their oldest daughter's university degree in tourism. She now works at a resort, earning significantly more than she would as a weaver. Zongty then described how her younger daughter wanted to be like her older sister -- and she has enrolled in college and is studying accounting! Zongty, who did not have a chance to complete primary school, was radiant when she talked about her daughters, and it was evident how proud she was of them.

For me, it made clear the value of the micro-loans we help fund on Kiva. It helps low-income households capitalize on an opportunity by being able to exchange small affordable payments for a large lump sum of cash. In this case, covering their daughter's education no doubt allows for a huge jump in earning potential between a struggling silk weaving trade and formal employment in the services sector.

Here’s a short video of Zongty weaving:

And here's a slide show of some of my favorite photos from my visit:

Team Obama Reaches $1 million in Loans!

Congratulations to the members and team captain of Kiva Lending Team "Team Obama" for recently passing $1 million in loans!

The Lending Team consists of 3,879 lenders who have made over 35,552 loans! A huge THANK YOU goes out to all the members of this team for their dedication and support of Kiva entrepreneurs. Click here to find out more about this team or start your own!

Join Matt and Premal in New York to celebrate International Women's Day!

Date: March 08th, 2011

Time: 7:00 PM - 9:00 PM

Location: The Three Monkeys ( 236 West 54th (between Broadway and 8th Ave)

2nd Floor

Join Matt Flannery, CEO and Co-Founder of Kiva, and Premal Shah, President of Kiva, and the New York Lending Team as we celebrate the 100th Anniversay of International Women's Day. International Women's Day is celebrated annually on March 8th to inspire women and to honor their achievements.

As big supporters of women (81% of all loans made through Kiva go to women entrepreneurs), Kiva is coming to New York and wants to celebrate with you! Come enjoy a night of mingling and sharing stories about Kiva, microfinance, and international women's day. At 8 PM, Matt and Premal will share Kiva's latest accomplishments and their exciting plans for the future.

This event is open to all, and attendees will include Kiva New York Lending Team members, lenders from the New York area, and other members of the microfinance community. Please RSVP.

Any questions, comments, or concerns about this event? Contact the Kiva New York Lending Team.

For general Kiva questions, please contact us HERE.

Thank you for your continued support of Kiva and our lending team community!

Reminder: Kiva New York Lending Team 2nd Annual Wine Tasting Fundraiser This Saturday, February 26th!

Join the Kiva New York Lending Team for the 2nd Annual Wine Tasting Fundraiser!

Date: Saturday, February 26, 2011

Time: 6:00 PM - 8:00 PM

Location: BottleRocket Wine & Spirit (5 West 19th St)

Help our Kiva New York Lending Team by joining other Kiva supporters for a few glasses of great wine! All proceeds will go towards the continued support of Kiva borrowers.

Last year this event helped start off the New York Team Fund, a non-withdrawable account on Kiva.org that has supported over 400 business owners to date.

For just $40, you will be able to sample 6 different wines from South Africa and Chile, twocountries that are currently supported by Kiva! All the wines offered are made available by BottleRocket, heralded by many as the friendliest and most knowledgeable wine store in the city.

Kiva's Partner Womens Development Businesses in South Africa has lent to over 60 entrepreneurs with $12,975 in total loans. Also Kiva's Partner Fondo Esperanza in Chile have lent to 1321 entrepreneurs with $294,050 in total loans.

Anyone interested in a fun night with other worldly and philanthropically-minded individuals should attend! Presentation of wines begins at 6:15pm with the Kiva New York Lending Team introducing itself, followed by a brief explanation of how Kiva works. The event will wrap up around 8pm.

Any questions, comments, or concerns about this event? Contact the Kiva New York Lending Team.

Thank you for your continued support of Kiva and our lending team community!

For general Kiva questions, please contact us here.

Passport Series: Cambodia Microfinance Industry

This is the second installment of this month's Passport Series of Cambodia; check out the Cambodia Country Profile. Kiva has a rich history of providing loans in Cambodia - and thus many, many posts from our Kiva Fellows about the country and their experiences there, check them out here.

Photo Credit: Shirley Fong, KF12

Cambodia is a country of over 14 million people with an average per capita GDP of $2000 and 31% living below the poverty line. It is home to one of the most vibrant microfinance industries in the world. The industry in Cambodia has seen very high demand for loans; the country is currently home to over 20 MFIs. There has been a recent growth in the industry, as seen in the following figure from mixmarket.org:



Microfinance Institutions really emerged in Cambodia in the early 1990's, when the country came out of a long series of conflicts. By the end of the 1990s, the industry was serving over 200,000 people. Since then, there has been significant growth! There are currently about 1.1 million borrowers in Cambodia with an average loan size of 556.20 USD, and a country-wide reported gross loan portfolio of 828.7 million USD.

Kiva has four Field Partners in Cambodia. They include: Angkor Microfinance Kampuchea, Hattha Kaksekar Limited, CREDIT, and Maxima Mikroheranhvatho Co. Ltd.

A Kiva borrower's Meatball Shop
Photo Credit: Stephanie Sibal, KF 14

Cambodia is home to many different types of microfinance borrower that are vastly different from each other. Here is a post from a Kiva Fellow about the lives and economies in which urban borrowers exist, and another Kiva Fellow post (in beautiful photos) about the trip to visit a rural borrower.

A Kiva Borrowing Family
Photo Credit: Edwin Au-Yeung, KF 12

Featured Field Partner - MAXIMA

Written by Anne-Marie Robles, Review and Translations Program Intern


Highlights

• Kiva Field Partner since: May 2007
• Loans through Kiva: $2,015,550
• Number of entrepreneurs assisted through Kiva: 3,237
• Focus: low-income individuals, groups, and small and medium enterprises (SMEs) with an emphasis on lending to poor, rural women

Formally known as Maxima Mikroheranhvatho Co. Ltd, or "MAXIMA for Household Economic Development", MAXIMA was founded in March 2000 with a vision to bring together people and businesses with the common goal of alleviating poverty by providing both economic and social opportunities to the rural poor. There are more than 20 microfinance institutions in Cambodia that offer similar services but MAXIMA is one of the few that offer door-to-door services for loan dispersal delivery and payment pickup. They also make an effort to hire local staff and open service offices in the areas they serve as well as offering lower interest rates for clients that are willing to make payments at these offices.

Benefiting Women and Families

MAXIMA believes that their loans can often benefit the women, and thus the family, more. When a family does not have suffiecient income, often their only option is to send the women of the family to the city to work in garment factories. This can be difficult because they then travel long distances, often in unsafe conditions, from the provinces daily or rent inadequate housing in Phnom Penh. Pay in the factories is very low, around $55-60 a month, which forces them to work overtime. Starting or expanding a small business closer to home can be a good alternative.

Wife Bank

While MAXIMA lends to both men and women, in Cambodia women are seen as being more responsible with money and are the money managers in every family. Even when men run the business, women manage the finances. The joke is that come payday men must give their paycheck to their wives. This is referred to as “Thonikea Bropon” or “wife bank”, where, it is said, it is easy to make a deposit but difficult to make a withdrawal.

Savings Aspirations

MAXIMA used to offer a fixed deposit savings program, where borrowers could deposit money into a savings account regularly and expect a certain amount of interest on their savings over time. In 2008 the Cambodian government passed a law that forced MFIs to get an additional license for savings deposits. To get this license, MFIs have to have a capital reserve of $2.5 million. MAXIMA is so small that they are not close to meeting this requirement, however a savings program remains part of their mission because they have a commitment to fulfilling the requirements to get the license and to offer this service to their customers again in the future. As such, they are currently looking for investors.

To lend to a MAXIMA borrower, browse their Kiva lender page.

Photos by Lina Goldberg, Kiva Fellow KF12

Passport Series Cambodia: Country Profile

This month's Passport Series focuses on Cambodia! We will take a look into the country this week, with a Profile and a deeper look into the Microfinance sector. Stay tuned this month for more updates and a special lender story!

Photo Credit: Edwin Au-Yeung

Cambodia is 181,035 sq km, which makes it just smaller than Oklahoma. It is also home to 443 km of some of the most beautiful coastline and beaches in the world. The capital of Cambodia is Phnom Penh, with a population of roughly 2 million people. It is by far the largest city in Cambodia, where only 22% of the population live in urban areas. However this is quickly changing as there is a 4.6% annual rate of change towards urbanization.

Cambodia is home to tropical weather with a severe monsoon season between May and November, and then a dry season for most of the rest of the year.

Image Credit: CIA World Factbook

The People:

Cambodia has a population of 14.45 million people. More than 50% of the population is less than 25 years old, with a median national age of 22.6 years and a life expectancy of 59.95 and 64.72 years for men and women, respectively. There are 2.9 children born to each Cambodian woman, on average. 74% of Cambodians are literate, but with a large discrepancy between men and women (85% of men are literate and only 64% of women are). 90% of Cambodians self-select themselves as Khmer, and 96.4% are Buddhist.

The Government and History:

Cambodia is currently run under a mutli-party democracy with a constitutional monarchy. The country was originally home of the Angkor empire (remnants still found in the famous historical site Angkor Wat). There was then a long period of decline and conflict from the 13th century through when the King placed the country under France's rule in 1863 for protection. They became a colony of France and gained their independence in 1953, but have had a long and hard struggle since then.

From 1975-1979 the Khmer Rouge took power in Cambodia and conducted a mass genocide. The Vietnamese invaded and drove the Khmer Rouge into the country-side, starting what would be an almost 13-year long civil war. There were many Peace negotiations, and in September of 1993, a constitution was finally written. There has been a turbulent struggle for political stability ever since. The most recently national elections in 2008, were relatively peaceful.

Photo Credit: Kelsey Dunn

The Economy:

The country's GDP per capita is $2,000 (with PPP), with a current real growth rate of 4.1%. There is still significant inequality in Cambodia. The highest earning 10% of households hold 34.2% of the country's consumption, where the lowest 10% only consume 3%. They hold a high Gini index of 43, and 31% of the population still lives below the poverty line.

Only about 20% of Cambodia's land is arable and 29% of their GDP comes from agriculture, however 68% of the labor force is devoted to it. Their natural resources include: oil and gas, timber, gemstones, phosphates, and hydropower potential. Both illegal logging and mining for gems are causing serious environmental degradation issues.

Photo Credit: Edwin Au-Yeung

Stay tuned for more information about Cambodia this month!

2010 Year In Review

Every year, January brings us a new beginning, the end of a year and some time to reflect. 2010 was a wonderful year for Kiva. There was tons of exciting new growth: from celebrating our 5th birthday to adding many new field partners, and launching our first student loans on the site! Here are some fun facts from 2010!


- 95,725 loans were posted on Kiva in 2010

- $74,235,600 in loans were posted on Kiva in 2010

(The number of borrowers whose loans were fully raised during the 2010 year.
This metric counts all borrowers on group loans - which is
why these numbers look higher than total numbers of loan funded.)

- Kiva posted loans for Field Partners in 54 countries this year!

- Kiva raised loans for entrepreneurs in 6 new countries the year! They were: Burundi, Congo, Israel, Jordan, South Africa, and Sri Lanka

- This year Kiva posted loans for 124 Field Partners

- Relationships were formed with 27 new Field Partners

- 126 Kiva Fellows volunteered several months of service all over the world

- During the 2010 holiday season alone, $3.6 million in gift certificates were purchased

- At the end of 2010, Kiva had grown to 76 employees

- We could never do what we do without the help of our volunteers. There were over 400 volunteers including in-office interns, review and translation volunteers, and many others!


We anticipate continued growth and excitement in 2011 and we look forward to sharing in it with all of you! Thank you for all you have done to support deserving entrepreneurs around the world, we couldn't do this without you.

Featured Field Partner - Asociación Arariwa

As part of the migration to the Updates Tab, the Review and Translation Program will be posting updates on featured Review and Translation Volunteers, Kiva Field Partners, and their insights on the latest in Kiva! This is the first of the posts. In coordination with this month's Passport Series on Peru (including: a Country Profile, a Profile of the Microfinance Industry and a Kiva Fellow's lending story), here is a look at a Featured Field Partner!

written by Anne-Marie Robles, Kiva Review and Translations Program Intern

Peruvian NGO Asociación Arariwa started in 1977. They began offering microfinance services in 1994 in the rural region of Cusco with the goal of improving the quality of life, skills and equity of the population. Arariwa’s services now reach the entire Cusco region and into the Puno, Apurimac and Madre de Dios provinces.

Typical bank loans in Peru require some sort of physical guarantee, but the village bank model uses a "social" guarantee, lending to a group of borrowers without collateral and encouraging self-monitoring and group-responsibility. This model of lending also allows Arariwa to reach more of the poor in the areas surrounding Cusco. Arariwa was founded by and remains highly connected to the Andean culture in Peru. This culture is marked by communal activities and support throughout the community. Group lending also provides an opportunity for Arariwa to reach out and coordinate savings and provide trainings to the local community. Arariwa´s village bank methodology is that each bank has 15 to 35 members, primarily women in poverty, who meet once a month.

To promote its village bank product, Arariwa visits each potential client’s house, maintains a presence at each town’s assembly and shows potential clients the benefits of working with Arariwa, like the savings products and education programs in addition to the loan products, and how the combination of education and savings can improve their quality of life.

Arariwa's clients are trained on the dangers of over indebtedness and the importance of savings and paying on time, so that they don't end up having financial problems. The education Arariwa's borrowers receive empowers the group members, raises their self-esteem, and improves their relationships with their family as the clients become more aware of how to positively interact with those around them and how to run their business better. In addition to education, the group-loan program has a built-in savings program, typically 3-5% of the original loan amount, and a micro-insurance service to protect borrower's families from inheriting the debt should something happen to the borrower.

Since partnering with Kiva in August 2008, Kiva lenders have funded more than 6,300 loans and lent over $2 million to Arariwa borrowers. Browse current Arariwa profiles fundraising on the Kiva site here!

Photos by Cynthia McMurry, Kiva Field Support Specialist for South America

Kiva President Visits Cambodia

Written by Cissy DeLuca, Field Support Specialist, Asia and Europe

Earlier this month, I had the pleasure of accompanying Premal Shah on a trip to visit Kiva field partners and borrowers in Cambodia. A lot of value came out of the trip as he was able to meet with top level management personnel, Kiva Coordinators and a number of Kiva borrowers. During our day with MAXIMA, we spent part of the morning with the CEO, COO, and Deputy CEO learning about the goals and long term plans of the organization. Premal then discussed Kiva's long term goals and led a brainstorm session on how we can work together to add more value for all Kiva stakeholders.

After the management meeting, we spent time with Sophal Ros (pictured above), the Kiva Coordinator. She is responsible for gathering borrower pictures and information from loan officers, writing the profiles and uploading the loans to Kiva. With a track record for posting great stories and a journal rate of 100%, Sophal is one of the hardest working Kiva Coordinators. She showed us her process for posting loans to Kiva and explained some of the challenges she often faces with her work.

Then, we headed out to the field to meet borrowers. Pa Kiry (pictured above), the HR Manager, joined us and served as a translator. After a 30 minute drive to a rural area outside of Phnom Penh, we were able to meet with a couple of borrowers. Vanna San, an entrepreneur funded through Kiva last November, was kind enough to show us her home, introduce us to her family and demonstrate her skills as a seamstress. We spent an hour with her learning about her background, current situation and future hopes for her family. Premal gave her a print out of her borrower profile and showed her the pictures of the people who had supplied her loan (pictured below).

Premal's visit was a joy for everyone involved - and a great look at the ecosystem of Kiva that connects us directly to borrowers. He is working on a post about his experience and the impact he has seen, stay tuned for his thoughts!

Passport Series: Peru: Microfinance Profile

The Passport Series on Peru continues this post, with a look into the Microfinance Sector in Peru. Check out the Peru Country Profile we posted last week.

Peru is home to a thriving and interesting Microfinance sector. The industry began, formally, in the 1970's. Political turmoil and economic crisis were strong in Peru during the 1980 and 1990's. In response, women became more involved in income generating activities to cover gaps in their families incomes - thus the spread of microfinance. Continued periods of instability for the country have only made the microfinance sector stronger.

In 2010, Peru was named the best climate in the world for microfinance in the Economist Intelligence Unit’s Global Microscope on the Microfinance Business Environment. Kiva is partnered with 7 MFIs in Peru: Microfinanzas Prisma, FINCA Peru, Manuela Ramos / CrediMUJER, EDAPROSPO, Asociación Arariwa, Edpyme Alternativa, and Caja Rural Señor de Luren. Most of the loans made on Kiva are used for Retail, Services, Food Sales, or Agriculture. But in a country as diverse and thriving as Peru, the myriad of businesses reflects this.

There are currently 65 reporting MFI's on TheMix.org with $5.5 billion in loan portfolios. There are 3.1 million active borrowers with an average loan size of $1305 per borrower. The Mix also keeps detailed information on the sector, and recently released a report on Microfinance in Peru. (note: this report is in Spanish!)

Next time you make a Kiva loan, think about lending to a Peruvian entrepreneur!

Photo Credit: Neda Amid-Hozour

Photo Credit: Neda Amid-Hozour