KIVA

**KIVA – Loan Justification Your Name: Eehjoe Kwon **  **1)**
 * Potential Recipient URL **:http://www.kiva.org/lend/349715
 * Country: ** Kenya
 * Type of Loan: ** food

__**Criteria **__

** 1. Risk **


 * Borrower (Credit history/Personal character): ** Hasina Ali has six children with only one of them enrolled in school. She works at a food kiosk which provides her a small amount of money. She lives in a house that has neither electricity nor piped water and she would like to buy food for the kiosk and she is planning to start her own charcoal business which is believed to increase her income.


 * Field Partner (Risk Rating, Delinquency Rate, Default Rate): **
 * Field Partner: **[|Yehu Microfinance Trust]
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Risk Rating: **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> 3 out of 5
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Delinquency Rate: **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">0.81%
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Default Rate **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">:0%

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">**Economic**: The economic risk is very high in Kenya .Though ,since 2008, the economy has been in a state of recovery. It is still volatile but is believed to be settled soon.
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Country Risk (Economic, Political, Natural Disaster) **


 * Political:** The political risk is considered high. It is not very organized and has numerous of structural deficiencies.


 * Natural Disaster:** Major disasters are famine, flood,drought and disease epidemics.

** 2. Business Plan - <span style="background-color: #ffffff; color: #ff0000; font-family: Arial; font-size: 11pt; vertical-align: baseline;">[|__Small Business Start Ups__] **

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">**Potential for success**: After she buys food for the kiosk and starts her own business she will success.


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Potential for sustainability **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">: Once she opens her own charcoal business and settles down, there is a high possibility that she will be able to keep up with her work.


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Potential for regional economic benefit: **

** 3. Borrower **


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Perceived level of need: **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Hasina is desperate for help. She is living in a house that has neither electricity nor water pipe with six children. Only one of them are in school right now and education is the most important thing for children.


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Financial responsibilities/commitments of individual: **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Hasina’s highest monthly expenses are food, clothing, and school fees. She is responsible for all of them and has to be able to afford them in order to make a living.

** 4. Summary ** <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Hasina Ali is a dedicated woman, living with six children. She has been working in a food kiosk for 15 years, though the income is not enough to support her children and to make a living for herself and the family. She is asking for the money to purchase food and she is planning to open her own charcoal business in the future. Though Kenya’s economy and politics do not seem very safe or organized, they are slowly improving. Natural disasters happen but not very often. The potential for success and sustainability seem pretty good because she has her future planned out and she is determined in what she is doing. Her field partner seems like a trustworthy group because they have a lot of experiences of doing this and it doesn’t seem like they failed any of them so far. <span style="background-color: transparent; color: #000000; display: block; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> <span style="background-color: transparent; color: #000000; display: block; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> <span style="background-color: transparent; color: #000000; display: block; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> <span style="background-color: transparent; color: #000000; display: block; font-family: Arial; font-size: 11pt; vertical-align: baseline;"><span style="background-color: transparent; color: #000000; display: block; font-family: Arial; font-size: 11pt; vertical-align: baseline;">**2)**
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Potential Recipient URL **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">: http://www.kiva.org/lend/351054
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Country: **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> Ecuador
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Type of Loan: **<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> Food

__ ** Criteria ** __


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">1. Risk **

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> **Borrower (Credit history/Personal character):** Delia Andrea lives in Otavalo with her four children. She is a very cheerful and supportive person who enjoys her work. She has been working in a food stand at the Otavalo land terminal for three years. She is asking for an industrial stove because the one she is using right now is a rental and she needs to give it back soon. Also she is willing to spend the rest of the money on foodstuffs for the stand. Her income is not enough to support her children right now and her dream is to have her own locale and to send her children to school.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">**Risk rating:** 3.5 out of 5
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; vertical-align: baseline;">__Field Partner (Risk Rating, Delinquency Rate, Default Rate):__ **
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Field Partner: ** [|FODEMI, a partner of World Vision International]
 * Delinquency Rate:** 0%
 * Default Rate:** 0%

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">**Political Stability Risk :** 70 out of 100. Pretty high. Strikes often occur. Dangerous.
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; vertical-align: baseline;">__Country Risk (Economic, Political, Natural Disaster)__ **
 * Economic Risk:** Poor country. GDP growth has slowed down over the past years.
 * Natural Disaster:** Active volcanoes are the major disaster in Ecuador. Earth tremors happen a lot time though most of them are not felt.


 * 2. Business Plan - [|__Small Business Start Ups__] **

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">**Potential for success**: This investment will help her because her stand will be more presentable with the new stove and business will increase; her income will be good and she’ll be able to help her children to go to school


 * Potential for sustainability**: She is planning to have her own business and once she gets it steady and ready, she will be able to sustain the business for a long time.


 * Potential for regional economic benefit:**


 * 3. Borrower **

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;">Financial responsibilities/commitments of individual: She has a big responsibility towards her four children. Food, clothing, house, education, tax ...etc are all under her responsibility. She is the mother, and also the head of household of her family.
 * Perceived level of need:** Right now, she does not have enough money to support her children, which is a huge problem. This will be her chance to spend some time for herself, and it is very important to do that because she needs to enjoy her life, especially at a young age like her.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 11pt; text-decoration: none; vertical-align: baseline;"> **4. Summary**

Delia Andrea lives with four children. She is very cheerful and supportive and works in a food stand which doesn’t provide much money. She is asking for an industrial stove and she is also willing to spend the rest of the money on foodstuffs for the stand. Her dream is to have a locale of her own to increase clientele. Her country Ecuador is poor and there are political and economic risks but they won’t have any influence on her business. Delia will be able to sustain her business because of her strong passion and love towards her family and her job. Her field partner seems like a responsible organization.