Adventist Development and Relief Agency International - Peru

Gross Loan Portfolio USD, 2010: 5.2 million

Number of active borrowers 2010: 16,481

Average loan balance per borrower USD, 2010: 314.8

Deposits USD, 2010: 0.0

Assets USD, 2010: 5.5 million

Number of depositors 2010: 0

Mission:

To bring relief to the needy, providing their integral development while demonstrating our compromise with work of compassion.

Background and Main Challenges:

1. Mejorar la profundización en el mercado a través del acceso a zonas rurales. 2. Acceso a fondos de préstamos/Diversificación de fuentes de financiamiento 3. Diferenciación y diversificación de productos. 4. Alcanzar la especialización en microfinanzas.

Address:

Av. Angamos Oeste 770 Miraflores

Lima

Lima 18

Peru

Phone:

712-7700

Fax:

712-7710

Email:

melgar [at] adra [dot] org [dot] pe

Website:

www.adra.org.pe

Products and Services:

Loans

Training and Consulting

Services Provided:

Other

Looking for (Investment Types):

Loans in Local Currency

Loans in US$

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1997

FYE:

31-Dec

Current Legal Status:

NGO

Regulated:

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in urban areas	2
Clients living in rural areas	3
Adolescents and youth (below 18)	4
+ Development goals (ranked by importance)
Poverty reduction	1
Employment generation	2
Increased access to financial services	3
Improvement of adult education	3
Fortalecimiento espiritual y familiar.	4
Children's schooling	5
Gender equality and women's empowerment	5
Youth opportunities	5
Development of start-up enterprises	5
Health improvement	6
Growth of existing businesses	6
Water and sanitation	7
Housing	7
+ Poverty targets
Poor clients
Low income clients
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Housing loans
+ Savings products offered
+ Compulsory insurance products required
Microseguro de Vida
+ Voluntary insurance products offered
Voluntary life insurance
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
Enterprise skills development
+ Education services offered
Financial literacy education
Fortalecimiento espiritual y familiar.
+ Health services offered
Basic medical services
+ Women's empowerment services offered
Leadership training for women
Women's rights education/gender issues training
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
Incentivos trimestrales en función a su desempeño laboral.
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to women
Quality of interaction with clients based on client feedback mechanisms
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution trains/educates clients regarding environmental improvements
Financiamiento para la adquisición de sistemas de saneamiento, que protegen el medio ambiente.
+ Poverty measurement tools in use
Grameen Progress out of Poverty Index (PPI)
Herramienta de Auditoria Social SPI de CERISE.

Partnerships

Current
Name	Relationship
ADRA	Network Affiliation
COPEME	Network Affiliation
Freedom from Hunger	Network Affiliation
MicroRate	Rating
Oikocredit	Funding
Planet Rating	Rating
Planet Rating - Latin America	Rating
The Rating Fund	Partner

MFI Report