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Kiva Zip Basics

Please go through all of the training material in detail. There

will be a quiz at the end of the training.

Kiva Zip Trustee Training

2What is Kiva Zip?

Kiva Zip is a website (https://zip.kiva.org) that enables financially excluded and socially impactful entrepreneurs to access 0% interest small business loans, by posting their

personal and business stories online. Loans are funded by lenders around the world.

Kiva Zip Is… Kiva Zip is NOT…

Platform that connects lenders to borrowers NOT a bank or a Microfinance Institution

Loan that needs to be repaid NOT a grant or donation

0% interest loan NOT loan with interest, fees, or collateral

3What 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

BorrowersTrustees

Kiva Zip connects lenders,

borrowers, and trustees

4How 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.

5How does Kiva Zip work? (Part 2)

Kshs. 5,000

Kshs. 3,000

Kshs. 2,000

Over 12 weeks:Kshs. 833Kshs. 833Kshs. 833Kshs. 833Kshs. 833Kshs. 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. 833Kshs. 833Kshs. 833Kshs. 833Kshs. 833Kshs. 833

Kshs. 10,000

6Who qualifies for a Kiva Zip loan?

Be 18 years or older

Have personal M-PESA

account

Complete free loan application

Receive trustee endorsement

Be willing to post a public

profile, with picture and

personal story on the Internet

NOT currently have large

debts

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 description

7What 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-time loan

8What is a Trustee?

Types of Trustees: Organizations & Individuals

Trustees are organizations or individuals who have strong ties in their communities. 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

Endorse borrower for a Kiva Zip loan NOT fund borrower’s Kiva Zip loan

Guarantee borrower’s character in public NOT guarantee borrower’s loan

Support borrower throughout the process NOT charge borrower a fee or interest

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Borrower Selection

What are the core responsibilities of Trustee?

Borrower Training

Borrower Endorsement

Loan Process Support

Repayment Support

Select borrowers you know well and trust

Select borrowers whose business you believe in

Select borrowers you think have the capacity to repay

Endorse borrowers who demonstrate knowledge of the program

Endorse deserving borrowers for repeat loans

Help borrowers complete their application and upload their photo (if needed)

Make sure borrower has answered questions truthfully

Provide moral and technical support to borrowers

Help borrowers manage repayments and delinquencies and push to pay if needed

Help borrowers understand how Kiva Zip works

Emphasize the importance of lender connection

Trustees play a pivotal role in ensuring Kiva Zip builds a strong foundation.

10What 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+ twitter followers and blog subscribers

Kiva Zip has over 100 trustee partners across Kenya

Kiva has connections to institutional donors and non-profits around the world

Kiva’s lender capital enables you to enhance your value proposition at little 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 international network of supporters

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Kiva Zip Lending Process

What is the lending process?

Steps with significant trustee involvement

Trustee selects & endorses borrower

Borrower completes

loan application

Trustee reviews

application

Kiva Zip reviews & approves

loan

Loan is funded &

disbursed to borrower

Borrower repays loan and updates

lenders

1 2 3 4 5 6

Trustee identifies, trains, and endorses credit-worthy borrowers

Borrower creates profile, incl. photo, personal story, and business description

Trustee reviews info on the loan application 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

12How 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 monthCredit 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 tier, which determines the number of loans trustee can endorse and the credit level of those loans. To qualify for a specific tier, trustee needs to meet min repayment rate and loans completed requirements.

Cumulative 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

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CreditLevel

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-Weekyl

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 maximumamount, 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

14How to select borrowers to endorse?Borrower selection is one of the most significant roles that trustees play in their relationship with Kiva Zip. Lenders across the world place their trust in the trustees to identify credit-worthy borrowers with strong characters.

Consideration Best Practice

1. Length of time trustee has known the borrower

At least 6 months

2. Distance between trustee and borrower

Same village, town, or city

3. Frequency of interactionbetween 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 relationship between trustee and borrower

Mentor / teacher, congregant, close friends, community leader

6. Number of common acquaintances

The more the better

Consideration Best Practice

1. Length of operation (historical business performance)

At least 6 months in operations; if newer business, then higher trustee involvement is recommended

2. Current financial situation and expectedrevenue / 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 Relationship Evaluate Borrower Capacity to Pay

15What are the next steps?

After selecting borrowers, trustee needs to train borrowers on Kiva Zip. Instructions and material for borrower training can be found in the Trustee Resource Center. After 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 andmobile phone number.

Borrower will be sent instructions on how to complete the loan application.

16What resources are available?

Kiva Zip Kenya Trustee Resource Center provides information and material to support trustee’s role. Please read through the Kiva Zip Policies and Kiva Zip Processessections of the resource center when you’re ready to endorse a borrower.

Link to Trustee Resource Center:

https://kiva.app.box.com/s/44sp7ccksdvxoleiperd

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To contact Kiva Zip Kenya

To find out more about Kiva Zip

To access Trustee Resource Center

Kiva Zip Kenya Key Contacts

https://zip.kiva.org

contactzip@kiva.org +254 700 254 851

https://kiva.app.box.com/s/44sp7ccksdvxoleiperd

18To complete the trustee training…

To complete the trustee training, you will now be given a short quiz to help us evaluate the trustee training material, and to ensure you understand Kiva Zip. You must complete the quiz to be approved as a trustee.

You need Internet to access the quiz. Please click on the following link:

https://www.surveymonkey.com/s/TrusteeTrainingQuiz

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Thank you for

becoming a trustee!!

We look forward to working with you.