KIVA

KIVA – Loan Justification

Potential Recipient URL: http://www.kiva.org/lend/338385 Name: Brayan Alusiola Shivachi Country: Kenya Type of Loan: Retail

Criteria

1. Risk

Borrower (Credit history/Personal character): No credit History, he sells mobile phone accessories. His business has expanded because of his hard work.He wants to expand even more. He has sold mobile phone accessories for six years and he is very determined. Field Partner (Risk Rating, Delinquency Rate, Default Rate): His risk Rating is 3/5 stars, his delinquency rate is 0.94%, his default rate is 0.06%. Country Risk (Economic, Political, Natural Disaster) Kenya's economy is doing very well with a 4-5% GDP growth expectancy. The system of government that they have is presidential representative democratic republic. From over forty years,there have been only thirty natural disasters mostly consisting of floods or droughts.

2. Business Plan - [|Small Business Start Ups]

Potential for success: There is a large potential for success because Brayan has already been doing this for 6 years and he has already expanded his store but could expand it even more if he had a loan. Potential for sustainability: There is quite a potential for sustainability because expanding his store would only make it more popular and he is already doing well at the age of 33. He has lasted six years and intends to last more than five more years. Potential for regional economic benefit: With expanding the store, it could create more job opportunities, although no information is given. 3. Borrower

Perceived level of need: His perceived level of need may not be as high as others but he is trying to support his family and I think that this creates some level of need. Financial responsibilities/commitments of individual: He is married and has one child to take care of.

4. Summary Brayan may not have the highest level of need but he could possibly help the economy and he has a sustainable business. There is a low level of risk to help Brayan be successful with his hard work and determination to expand. He does not have too many financial responsibilities and therefore could repay his loan quicker than some.

KIVA – Loan Justification

Potential Recipient URL: http://www.kiva.org/lend/348706 Name: Michael Korio Country: Kenya Type of Loan: Retail

Criteria

1. Risk

Borrower (Credit history/Personal character): He applied for a loan of KES 60,000 with no information about whether he received the money or payed it back. He operates a retail shop and has been for the last year. His success is high with a monthly income of KES 16,400. He will use the loan to buy more daily-use items so he can provide for his family. Field Partner (Risk Rating, Delinquency Rate, Default Rate): The risk rating is 3.5/5 stars, with a delinquency rate of 2.79% and a default rate of 0%. Country Risk (Economic, Political, Natural Disaster) Kenya's economy is doing very well with a 4-5% GDP growth expectancy. The system of government that they have is presidential representative democratic republic. From over forty years,there have been only thirty natural disasters mostly consisting of floods or droughts.

2. Business Plan - [|Small Business Start Ups]

Potential for success: He has some potential for success because he is earning a good amount of money and has been working at this business for little over a year. Potential for sustainability: There is potential for sustainability if he gets the loan because he could selll more items and make more money and as Kenya's economy is doing well, there is much potential for sustainibility. Potential for regional economic benefit: If his income stays the same or continues to grow then he could potentially help other small businesses by buying products or using services. 3. Borrower

Perceived level of need: His level of need is higher than some but not in a dire situation because he needs to be able to support his family but he is also doing well currently. Financial responsibilities/commitments of individual: He needs to support a wife and three children.

4. Summary Michael has a reasonable level of need to support his family and with his income, he could repay the loan somewhat quickly especially if that income grew with the loan. He has a higher potential for success and for sustainability with a loan and could benefit the economy. He is hard-working and there isn't a lot of risk to helping him.