1

• Borrower Training

Kiva Zip Orientation

2Meet Mary

Mary is a nurse from Busia, Kenya. She has managed and operated her own community

clinic since 2009.

It was her dream to operate her own business. However, in the beginning she

faced many financial challenges.

Bank loans had very high interest and she didn’t want to burden her family and friends

with asking for money.

But through the help of a trustee and a loan from Kiva Zip, she has grown her business

and improved her life.

Today, Mary has graduated to a second loan and given other nurses in her community

the opportunity to apply for Kiva Zip loans.

3Mary’s Profile on Kiva Zip!

Endorsement:Mary’s trustee tells lenders why they endorsed Mary

Repayments:Mary’s repayment schedule and actual payments

Overview:Mary’s photo, description and loan purpose

Lenders:Photo and profile of all Mary’s lenders 

Conversations:Updates among Mary, Mary’s lenders and Mary’s trustee 

4How Does It Work?

KSH 3000

KSH 2000

KSH 5000

Lenders

KSH 10,000

Mary

KSH 10,000

5…And, In Reverse!

KSH 3000

KSH 2000

KSH 5000

Lenders

KSH 10,000

Mary

KSH 833

KSH 833KSH 833

KSH 833KSH 833KSH 833KSH 833

KSH 833KSH 833KSH 833KSH 833

KSH 83312 Weeks

6What is Kiva Zip?

Kiva Zip is a website, NOT a bank or a microfinance institution Kiva Zip provides 0% interest loans, NOT grants Your loan is received and repaid through M-PESA Kiva Zip does not fund your loan, lenders from around the world fund your loan through Kiva Zip’s website Lenders are regular people who trust you with their money because they believe in you and your business Kiva Zip is a community of people. Our platform is based on building relationships. Lenders and borrowers

communicate through SMS

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QUESTION 1: What is Kiva Zip?

A. A bankB. A website on the internet which connects lenders to entrepreneurs like youC. A money lender

Quiz Time!

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QUESTION 2: The Money I Receive Through Kiva Zip Is…

A. A 20% interest loanB. A loan, but it’s ok if I don’t pay backC. A loan that I am required to pay back

Quiz Time!

95 Steps to Qualify for a Loan

41 23

Must Be 18 Years or Older

Must Be Endorsed by a Kiva Zip Trustee

Must Not Have Large Outstanding Debt

Must Have Personal M-Pesa Account

5Must Complete Free Loan Application

10The Lending Process

11

Your trustee is an individual or organization that partners with Kiva Zip

Your trustee 'endorses' or recommends you for a loan because they believe you are of high character and credit worthy

Your trustee is your point of contact for all technical difficulties and questions about Kiva Zip

You and your trustee should maintain a good relationship throughout the loan cycle

If you repay well, your trustee may re-endorse you for repeat loans

Role of Your Trustee

12Who Gets Endorsed for a Loan?

Trustee Endorsement 

13Loan Application

Public Profile

Put on the internet for anyone to see

Photo

Personal Story

Business Description

Loan Request

Private Info

Protected by Kiva Zip, and only available to borrower, trustee,

and Kiva staffSurname

Household Info

Financial Info

M-Pesa Number

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Good photo:Shows face clearlyShows your business premise

Shows loan purposeNo passport photos 

Good personal story:Honest and accurateWhere did you grow up, where are you today, what is life like, and what are your dreams? 

 

About your business

How to Create a Good Public Profile?

Good business description:Sound business planWhen did you start your business, what does your business do, and what is your biggest business challenge? 

 

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QUESTION 3: What Is Required to Get a Kiva Zip Loan?

A. Post my photo and story to the internetB. Post my MPESA # on the internetC. I must have taken out an MFI loan

Quiz Time!

16

QUESTION 4: What is the Role of My Trustee?

A. To pay back my loan if I can'tB. To recommend me for this loan and provide me support throughout my loanC. To fund my loan

Quiz Time!

17Your Loan Is Fundraised!

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Your first Kiva Zip loan can range from KSH 5,000 to KSH 10,000

You have a maximum of 3 months or 12 weeks to repay your first Zip loan

There is NO grace period for your first loan The first loan MUST be repaid on a weekly basis If you repay your loan on time and in full, you may

qualify for a repeat loan that is larger and repaid over a longer loan term

You will only receive your loan if and when it is successfully fundraised on the internet AND when you send at least one comment to your lenders

Once your loan has fundraised on the internet, Kiva will send the funds directly to your M-PESA account. Kiva incurs the charge for sending these funds

Loan Disbursement

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QUESTION 5: How Is My Loan Funded?

A. Lenders from around the world read my story and fund my loanB. My trustee funds my loanC. Kiva Zip staff funds my loan

Quiz Time!

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A. My trustee gives me cashB. Kiva Zip staff gives me cashC. Kiva Zip sends funds to my phone using M-Pesa

Quiz Time!

QUESTION 6: Once My Loan Is Funded, How Do I Receive It?

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QUESTION 7: When Will I Receive My Loan?

A. Only if and when my loan is fully funded by lendersB. After Kiva Zip approves my applicationC. After I complete my application

Quiz Time!

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Repayment begins 1 week after funds are disbursed

Repayments are made on the same designated day each week, the day on which your funds were first disbursed

Kiva will send you reminder text messages every week in the days before your repayment is due and on the due date

You incur the charge for sending repayments via M-Pesa

Repayments must be made with your personal M-Pesa account ONLY. Repayments sent from other accounts will not be acknowledged.

Loan Repayments

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Pay BillBuy Goods

Enter Business No.

890300

Enter Account No.

KIVAMICROFUNDS

Enter Amount

$ KSH

Send moneyWithdraw cashBuy airtimeM-ShwariPayment ServicesMy account

Will send you an SMS

confirming your

repayment was

received

Safaricom+M-PESAOkoaSim

Loan Repayments Using M-Pesa

Enter PIN

1234

24Why Communicate with Your Lenders?

Borrower updates: Frequent Detailed Updates on

business Impact of loan 

Lender messages to borrower 

Trustee updates on behalf of borrower 

It is a requirement to getting your loan disbursed! They are regular people from around the world. They are people who trust

you with their money because they believe in you and your business They would like to know how their contribution to your loan has helped your

business grow AND any challenges you face in your business

Send an SMS message to 0700 274 851 to communicate with your lenders from around the world! Please save this number in your phone as “Kiva”

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You may not be able to apply for a second loan Your trustee's reputation will suffer and its partnership

with Kiva Zip may be terminated Other people within your trustee's network or

organization may not be able to apply for a Kiva Zip loan You may build a negative credit history with Metropol

that blacklists you and prevents you from receiving future loans with micro-finance institutions and banks

What should you do if you know that you cannot pay back your loan on time?

Communicate with your lenders immediately to tell them about your situation and that you will be late in repaying

Work with your trustee to set a plan for moving forward Make partial repayments to your loan as you are able

Consequences of Not Repaying Loan

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Earn 'badges' of recognition for being a great Kiva Zip borrower. A badge is a 'virtual award' or trophy that appears on your profile as a picture

Badges improve the reputation of you and your trustee, determine your repeat loan amount, and increase your chances of being fundraised

Your trustee will be able to endorse more people from your community You will improve your credit rating from Metropol Credit Reference Bureau,

and can increase your chances of getting a loan with a bank or micro-finance institution in the future

You can qualify for a repeat loan that is larger than the first and repaid over a longer loan term

Why Repay On Time and In Full?

Repayment badge:Timely repaymentsUsing your MPESA account listed on app

Payment in full 

Connectedness badge:Updating your lendersFilling mid-survey and end-survey that Kiva sends you

 

BADGES:Judge your repayments and updates to lendersCan be gold, silver, or bronzeGold badge=higher chance of bigger second loan

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 Loan Amount by Repayment Badge

 Loan Terms

Loan # Gold Silver Bronze Duration Payment Options

1 ≤10,000 N/A N/A 2-3mo Weekly

2 ≤20,000 ≤15,000 ≤10,000 4-6mo Weekly

3 ≤30,000 ≤25,000 ≤20,000 6-9moWeekly, Bi-

weekly

4 ≤50,000 ≤40,000 ≤30,000 9-12moWeekly, Bi-

weekly, Monthly

5 ≤70,000 ≤60,000 ≤50,000 9-12moWeekly, Bi-

weekly, Monthly

Borrowers who pay back their loan on time and in full

Borrowers who send their lenders frequent updates

Borrower who maintain a good relationship with their trustee

Borrowers who fulfill obligations to their trustee

Who Qualifies for a Repeat Loan?

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QUESTION 8: How Do I Make Repayments?

A. I give cash to my trusteeB. I use my M-Pesa account to send my repaymentsC. It doesn't matter whose M-Pesa account I use to repay

Quiz Time!

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A. Tell my trusteeB. Tell Kiva Zip staffC. Send an SMS to my lenders

Quiz Time!

QUESTION 9: What is the Best Way to Keep Lenders Updated About My Business?

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QUESTION 10: What is Kiva Zip?A. I can't get another Kiva Zip loanB. My reputation won't be affectedC. My friends will get a Kiva Zip loan

Quiz Time!

QUESTION 10: What Happens If I Don’t Repay or Update Lenders?

31Next Steps

• Please visit https://zip.kiva.org to learn more about Kiva Zip. If you click on the Lend tab at the top, you can see profiles of other people requesting Kiva Zip loans, and you can see who, from around the world, is lending them money.

• Once you have reviewed both links, please email your trustee so you can move to the next step of the loan application process.

32Thank You!

What Questions Do You Have?