Date post: | 12-Jul-2015 |
Category: |
Documents |
Upload: | tonychowkiva |
View: | 76 times |
Download: | 0 times |
1
Kiva Zip Basics Please complete the quiz on the right as you review this training material
Kiva Zip Trustee Training
2 What is Kiva Zip? Kiva Zip is a website (h'ps://zip.kiva.org) that enables financially excluded and socially impac?ul entrepreneurs to access 0% interest small business loans, by posAng their personal and business stories online. Loans are funded by lenders around the world.
Kiva Zip Is… Kiva Zip is NOT… ü Pla>orm that connects lenders to borrowers " NOT a bank or a Microfinance InsAtuAon ü Loan that needs to be repaid " NOT a grant or donaAon ü 0% interest loan " NOT loan with interest, fees, or collateral
3 What is Kiva Zip’s model?
People from all around the world who want to support entrepreneurs and make a difference
Under-banked & unbanked entrepreneurs
Organizations or individuals who have long-standing relationships with entrepreneurs
Lenders identify borrowers to lend to;
Borrowers repay lenders over time
Trustees support borrowers during their loan
Trustees ensure lenders are lending to credible people
Kiva Zip is a community of people – borrowers, trustees, and lenders. The model is based on trust.
Lenders
The Kiva Zip Model
Borrowers Trustees
Kiva Zip connects lenders, borrowers, and trustees
4 How does Kiva Zip work? (Part 1)
Kshs. 5,000
Kshs. 3,000
Kshs. 2,000
Kshs. 10,000
Lenders from across the world lend to Kiva Zip borrowers through the Internet
Borrowers use loan to improve and expand their businesses
Kiva Zip disburses loan to borrowers through M-‐PESA
Trustees endorse and support borrowers
Lenders to Borrowers: Loans are funded by lenders across the world, facilitated by Kiva Zip, and disbursed to the borrowers through M-‐PESA.
5 How does Kiva Zip work? (Part 2)
Kshs. 5,000
Kshs. 3,000
Kshs. 2,000
Over 12 weeks: Kshs. 833 Kshs. 833 Kshs. 833 Kshs. 833 Kshs. 833 Kshs. 833
Lenders re-‐use fund to re-‐lend to borrowers in the future
Borrowers repay loan in increments though M-‐PESA
Kiva Zip disburses fund back to lenders
Trustees provide support and communicate issues
Borrowers to Lenders: Borrowers repay the loan in increments through M-‐PESA; Kiva Zip disburses money to lenders to re-‐lend to borrowers
Kshs. 833 Kshs. 833 Kshs. 833 Kshs. 833 Kshs. 833 Kshs. 833
Kshs. 10,000
6 Scenario: Explain Kiva Zip to a potential borrower
Jackie: Hi, I heard that you want to become involved in giving microloans. Can you tell me some more about it? Please respond to her quesSons in the survey on the right side of the screen. QuesSon 1: What is Kiva Zip? QuesSon 2: What does the trustee do? QuesSon 3: Who are the lenders? QuesSon 4: How do I receive the loan disbursement and make payments?
Jackie is an acquaintance that heard you want to become involved with Kiva Zip and has many quesAons for you
7 Who qualifies for a Kiva Zip loan?
q Be 18 years or older q Have personal M-PESA
account q Complete free loan application q Receive trustee endorsement q Be willing to post a public
profile, with picture and personal story on the Internet
q NOT currently have large debts
q NOT have defaulted on loans with banks or microfinance institutions
Requirements for Kiva Zip Borrowers
Sample borrower profiles Good borrower profile consists of clear photo of borrower at place of business and detailed personal story & business descripSon
8 What are the terms of the loan?
§ 0% interest; no fees
§ Loan must be used for business reasons
§ Borrower’s first Kiva Zip loan ranges from KES 5,000 to KES 10,000
§ First loan MUST be repaid on a weekly basis
§ Borrower has 2-3 months to repay the first loan; max loan period is 12 weeks
§ There is no grace period for the first loan
§ If borrower repays loan on time and in full, then borrower may qualify for a repeat loan that is larger with more flexible terms
Basic Loan Terms Typical loan term for first-‐3me loan
9 Scenario: Explain Kiva Zip to a potential borrower
Jackie: Wow, that sounds amazing! I think a Kiva Zip loan would really help my business. Please respond to her quesSons in the survey on the right side of the screen. QuesSon 5: What is NOT required to get a Kiva Zip loan? QuesSon 6: As a new trustee, what is the maximum size of her first Kiva Zip loan? QuesSon 7: What are her payment terms? QuesSon 8: How can she receive bigger loans?
Jackie is an acquaintance that heard you want to become involved with Kiva Zip and has many quesAons for you
10 What is a Trustee?
Types of Trustees: OrganizaSons & Individuals
Trustees are organizaSons or individuals who have strong Ses in their communiSes. Trustees recommend credit-‐worthy borrowers to Kiva Zip, guarantee borrowers’
character, and support borrowers throughout the process.
Where trustees are
Trustee does Trustee does not ü Endorse borrower for a Kiva Zip loan " NOT fund borrower’s Kiva Zip loan ü Guarantee borrower’s character in public " NOT guarantee borrower’s loan ü Support borrower throughout the process " NOT charge borrower a fee or interest
11
Borrower SelecSon
What are the core responsibilities of Trustee?
Borrower Training
Borrower Endorsement
Loan Process Support
Repayment Support
ü Select borrowers you know well and trust ü Select borrowers whose business you believe in ü Select borrowers you think have the capacity to repay
ü Endorse borrowers who demonstrate knowledge of the program
ü Endorse deserving borrowers for repeat loans ü Help borrowers complete their applicaSon and upload their
photo (if needed) ü Make sure borrower has answered quesAons truthfully
ü Provide moral and technical support to borrowers ü Help borrowers manage repayments and delinquencies and
push to pay if needed
ü Help borrowers understand how Kiva Zip works ü Emphasize the importance of lender connecSon
Trustees play a pivotal role in ensuring Kiva Zip builds a strong foundaAon.
12
Kiva Zip Lending Process
What is the lending process?
Steps with significant trustee involvement
Trustee selects & endorses borrower
Borrower completes
loan applicaSon
Trustee reviews
applicaSon
Kiva Zip reviews & approves loan
Loan is funded &
disbursed to borrower
Borrower repays loan and updates
lenders
1 2 3 4 5 6
Trustee idenAfies, trains, and endorses credit-‐worthy borrowers
Borrower creates profile, incl. photo, personal story, and business descripAon
Trustee reviews info on the loan applicaAon and approves as appropriate
Kiva Zip reviews borrower profile, and if approved, then posts profile online for fundraising
Lenders fund the loan; once fully funded, loan is disbursed to borrowers on the next set disbursement date
Borrower repays loan and provides updates to lenders; once repaid, borrower may be eligible for repeat loan
1-‐4 weeks 1-‐3 weeks
13 What are benefits of being a Kiva Zip Trustee?
Branding Networking Support
§ Kiva is recognized as one of the top non-‐profits in the world
§ Kiva has 1 million+ lenders around the world
§ Kiva has 300,000+ twi_er followers and blog subscribers
§ Kiva Zip has over 100 trustee partners across Kenya
§ Kiva has connecAons to insAtuAonal donors and non-‐profits around the world
§ Kiva’s lender capital enables you to enhance your value proposiSon at li'le to no risk
§ As a Kiva partner, you have access to trained legal, microfinance, and financial experts
As one of the top non-‐profits in the world, Kiva Zip provides trustees with credibility associated with the Kiva brand and an internaSonal network of supporters
13
14 Scenario: Explain Kiva Zip to a potential trustee
Charles is interested in becoming a trustee and has many quesAons for you
Charles: I heard you are applying to become a Kiva Zip trustee. Can you tell me about it?
Please respond to his quesSons in the survey on the right side of the screen. QuesSon 9: Can a trustee be an organizaAon or an individual? QuesSon 10: What is NOT the role of a trustee? QuesSon 11: How should I support borrowers during their applicaAon process? QuesSon 12: How can I benefit from being a trustee?
15 How many loans can a trustee endorse?
Tier How to Qualify for the Tier Portfolio Limits at the Tier # of Completed
Loans Cumulative
Repayment Rate # of Outstanding Loans Allowed
Credit Level of First Time Borrowers
Pilot n/a n/a 10 Credit Level 1
Tier 1 10 ≥80% 20 Credit Level 1
Tier 2 20 ≥85% 30 Credit Level 2
Tier 3 30 ≥90% 20 new endorsements each month Credit Level 3
Paused / Closed 0 n/a
Kiva Zip Trustee Tiers
# of Completed Loans: Number of loans that have been fully repaid
Each Kiva Zip trustee qualifies for a trustee Ser, which determines the number of loans trustee can endorse and the credit level of those loans. To qualify for a specific Aer, trustee needs to meet min repayment rate and loans completed requirements.
CumulaSve Repayment Rate: % of loan repaid by borrowers to date
# of Loans Outstanding: Number of loans endorsed and not fully repaid
Credit Level: loan terms allowed for new borrowers endorsed by the trustee
Start as Pilot
16
Credit Level
How to Qualify for the Credit Level Loan Terms at the Credit Level
Min On-Time Repayment
Min. Term of Previous Loan Max Amount Max Term Repayment Frequency
1 None None 10,000 Ksh 3 months Weekly
2 >80% 2 months 20,000 Ksh 6 months Weekly
3 >90% 4 months 30,000 Ksh 9 months Weekly, Bi-Weekly
4 >90% 6 months 50,000 Ksh 12 months Weekly, Bi-weekly, Monthly
5 >95% 9 months 70,000 Ksh 12 months Weekly, Bi-weekly, Monthly
How much is each new or repeat loan?
Credit level of a new borrower depends on which Trustee Tier his/her trustee is qualified for.
Kiva Zip Credit Ladder
Each Kiva Zip borrower qualifies for a credit level, which determines the maximum amount, term, and repayment frequency allowed for the loan. To qualify for a specific credit level, borrower needs to meet repayment and minimum loan requirements.
New Borrowers
Repeat Borrowers
As a borrower repays the loan, he/she moves up a credit level, as long as the repayment and minimum term requirements are met.
Start Here
17 What are the next steps? A_er selecAng borrowers, trustee needs to train borrowers on Kiva Zip. InstrucAons and material for borrower training can be found in the Trustee Resource Center. A_er training, trustee needs to complete an online endorsement for each borrower.
To endorse a borrower, trustee needs to log into the Kiva Zip account at zip.kiva.org/my, and complete an endorsement form for each borrower.
To begin endorsing a New Borrower, trustee must provide accurate name and mobile phone number. Borrower will be sent instrucAons on how to complete the loan applicaAon.
18 How to select borrowers to endorse? Borrower selecSon is one of the most significant roles that trustees play in their relaAonship with Kiva Zip. Lenders across the world place their trust in the trustees to idenAfy credit-‐worthy borrowers with strong characters.
ConsideraSon Best PracSce 1. Length of Sme trustee has known the borrower
At least 6 months
2. Distance between trustee and borrower
Same village, town, or city
3. Frequency of interacSon between trustee and borrower
At least once every two weeks
4. Character of the borrower
Strong character, good work ethics, honest, and trustworthy
5. Type of relaAonship between trustee and borrower
Mentor / teacher, congregant, close friends, community leader
6. Number of common acquaintances
The more the be'er
ConsideraSon Best PracSce 1. Length of operaSon (historical business performance)
At least 6 months in operaAons; if newer business, then higher trustee involvement is recommended
2. Current financial situaSon and expected revenue / income
Monthly profit (revenue less cost) should be equal to more than 5,000Ksh
3. Use of loan Trustee should assess whether purpose of loan and amount requested are reasonable
Evaluate Trustee-‐Borrower RelaSonship Evaluate Borrower Capacity to Pay
19 Scenario: Explain Kiva Zip to a potential trustee
Charles is also interested in becoming a trustee and has many quesAons for you
Charles: InteresAng... Can you give me more details about how the system works?
Please respond to his quesSons in the survey on the right side of the screen. QuesSon 13: What is the maximum number of loans a new trustee can endorse? QuesSon 14: How do I become a Tier 1 trustee? QuesSon 15: How does the borrower credit ladder work? QuesSon 16: What kind of candidate would be an ideal borrower?
20 What resources are available? Kiva Zip Kenya Trustee Resource Center provides informaAon and material to support trustee’s role. Please read through the Kiva Zip Policies and Kiva Zip Processes secAons of the resource center when you’re ready to endorse a borrower.
Link to Trustee Resource Center: https://kiva.app.box.com/s/44sp7ccksdvxoleiperd
21
To contact Kiva Zip Kenya
To find out more about Kiva Zip
To access Trustee Resource Center
Kiva Zip Kenya Key Contacts
h_ps://zip.kiva.org
[email protected] +254 700 254 851
h_p://Snyurl.com/TrusteeResourceCenter
22
Thank you for becoming a trustee!! We look forward to working with you.