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
7
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!
8
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!
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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?
21
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?
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