Kiva

KIVA – Loan Justification Your Name: Holly Reist-Millward

Potential Recipient URL: http://www.kiva.org/lend/349727 Name: Habiba Baya Country: Kisauni, Kenya Type of Loan: Retail

Criteria

1. Risk

Borrower (Credit history/Personal character): She seems motivated to improve her business. She also seems keen on not only helping her own family but also her neighbors and the locals of her town.

Field Partner (Risk Rating, Delinquency Rate, Default Rate): Yehu Microfinance Trust has a moderate (three stars) risk rate, it's delinquency rate is 0.81% and it's default rate is 0.00%.

Country Risk (Economic, Political, Natural Disaster) I don't believe there is a huge country risk, except perhaps for the fact that Kenyan fighters are pushing into Somalia in pursuit of al-Shabab militant and they are wondering what foreign forces may be backing the militants up. Kenya doesn't have many severe natural disaster but they often do get drought.

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

Potential for success: I believe Habiba's potential for success if pretty high, since she already has customers. Potential for sustainability: I believe Habiba's potential for sustainability is pretty high because she already has a pretty sustained business, she just wants more sunflower seeds because of the thieves and rainy season. Potential for regional economic benefit: I believe the potential for regional economic benefit is pretty high. 3. Borrower

Perceived level of need: I believe Habiba's level of need is moderate, she does have a house with electricity and piped water but she needs more money from her business to provide food for her family since there is four of them. Financial responsibilities/commitments of individual: Habiba has to pay for her two children's education, her electrical bill, her water bill and for the food her family eats. She also has a husband to help her out with these financial responsibilities.

4. Summary Habiba is asking for 200$ to pay for sunflower seeds for her sunflower stand, which she from her home or door-to-door. She has two children who are both enrolled in full time schooling. She also has several side businesses where she sells containers, cakes and charcoal. Her biggest challenge is thieves and during the dry season. She wishes this loan to pay for more sunflower seeds and supplies for her side businesses.

Potential Recipient URL: [] Name: Madina Country: Kampala, Uganda Type of Loan: Service- Beauty Salon

Criteria

1. Risk

Borrower (Credit history/Personal character): Madina seems like a determined woman, who would use her loan in the right way. All she wishes is to provide for her daughter and herself and improve their lives. Field Partner (Risk Rating, Delinquency Rate, Default Rate): MCDT SACCO has a risk rating of two stars. Their delinquency rate is 1.17% and their default rate is 0.00%. Country Risk (Economic, Political, Natural Disaster) Their doesn't seem to be any political issues with Uganda at the moment but here are the statistics per year for natural disasters: Drought : 0.19 Earthquake: 0.13 Epidemic: 0.97 Flood: 0.48 Storm: 0.10

159,311 on average are affected per year in Uganda by a natural disaster.

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

Potential for success: I believe Melinda's potential for success is pretty high. She already has a business but wishes to improve it and provide a better lifestyle for her and her daughter. She seems determined to go as high as she can go with her business. Potential for sustainability: Melinda's potential for sustainability seems reasonably high. She already has her business started and just wishes to expand and earn a higher income. Potential for regional economic benefit: I believe the potential for regional economic benefit is reasonably high. 3. Borrower

Perceived level of need: I believe Melinda's level of need is higher then moderate but not high. She is living in a rented house with no piped water and has to pay for her daughter's school fees. Financial responsibilities/commitments of individual: Melinda has to pay her house rent, pay for her daughter's school fee, pay for her beauty salon supplies and pay for food to provide for her family.

4. Summary Melinda is a single mother with one child who attends school. She rents a house and has access to electricity but not piped water. She has a business of a beauty salon, which she's been in for 10 years. She works 7 days a week for long hard hours. Her main struggle with her business is that of thieves and the growing price of braids. Her goals for her business is to own a bridal salon and a fully stocked salon.