Kiva Zip is a website that provides 0% interest small business loans to financially excluded entrepreneurs. It connects lenders around the world with borrowers through a model based on trust. Trustees, who are organizations or individuals with strong community ties, endorse credit-worthy borrowers and support them throughout the application and repayment process. The training document provides details on the roles of lenders, borrowers, and trustees as well as the loan terms and qualifications.

1. 1
Kiva Zip Trustee Training
Kiva Zip Basics
Please complete the quiz on the right as you review this
training material

2. What is Kiva Zip? 2
Kiva
Zip
is
a
website
(h'ps://zip.kiva.org)
that
enables
financially
excluded
and
socially
impac?ul
entrepreneurs
to
access
0%
interest
small
business
loans,
by
posAng
their
personal
and
business
stories
online.
Loans
are
funded
by
lenders
around
the
world.
Kiva
Zip
Is…
Kiva
Zip
is
NOT…
ü Pla>orm
that
connects
lenders
to
borrowers
" NOT
a
bank
or
a
Microfinance
InsAtuAon
ü Loan
that
needs
to
be
repaid
" NOT
a
grant
or
donaAon
ü 0%
interest
loan
" NOT
loan
with
interest,
fees,
or
collateral

3. What is Kiva Zip’s model? 3
People from all around the world
who want to support entrepreneurs
and make a difference
Under-banked
& unbanked
entrepreneurs
Kiva
Zip
is
a
community
of
people
Organizations or
individuals who
have long-standing
relationships with
entrepreneurs
Lenders identify
borrowers to lend to;
Borrowers repay
lenders over time
Kiva Zip connects lenders,
borrowers, and trustees
Trustees support borrowers
during their loan
Trustees ensure
lenders are lending
to credible people
–
borrowers,
trustees,
and
lenders.
The
model
is
based
on
trust.
Lenders
The
Kiva
Zip
Model
Trustees
Borrowers

4. How does Kiva Zip work? (Part 1) 4
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.

5. How does Kiva Zip work? (Part 2) 5
Kshs.
5,000
Kshs.
3,000
Kshs.
2,000
Over
12
weeks:
Kshs.
833
Kshs.
833
Kshs.
833
Kshs.
833
Kshs.
833
Kshs.
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.
833
Kshs.
833
Kshs.
833
Kshs.
833
Kshs.
833
Kshs.
833
Kshs.
10,000

6. Scenario: Explain Kiva Zip to a potential borrower 6
Jackie:
Hi,
I
heard
that
you
want
to
become
involved
in
giving
microloans.
Can
you
tell
me
some
more
about
it?
Please
respond
to
her
quesSons
in
the
survey
on
the
right
side
of
the
screen.
QuesSon
1:
What
is
Kiva
Zip?
QuesSon
2:
What
does
the
trustee
do?
QuesSon
3:
Who
are
the
lenders?
QuesSon
4:
How
do
I
receive
the
loan
disbursement
and
make
payments?
Jackie
is
an
acquaintance
that
heard
you
want
to
become
involved
with
Kiva
Zip
and
has
many
quesAons
for
you

7. Who qualifies for a Kiva Zip loan? 7
Requirements
for
Kiva
Zip
Borrowers
q Be 18 years or older
q Have personal M-PESA
account
q Complete free loan application
q Receive trustee endorsement
q Be willing to post a public
profile, with picture and
personal story on the Internet
q NOT currently have large
debts
q NOT have defaulted on loans
with banks or microfinance
institutions
Sample
borrower
profiles
Good
borrower
profile
consists
of
clear
photo
of
borrower
at
place
of
business
and
detailed
personal
story
&
business
descripSon

8. What are the terms of the loan? 8
Basic
Loan
Terms
§ 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
Typical
loan
term
for
first-­‐3me
loan

9. Scenario: Explain Kiva Zip to a potential borrower 9
Jackie:
Wow,
that
sounds
amazing!
I
think
a
Kiva
Zip
loan
would
really
help
my
business.
Please
respond
to
her
quesSons
in
the
survey
on
the
right
side
of
the
screen.
QuesSon
5:
What
is
NOT
required
to
get
a
Kiva
Zip
loan?
QuesSon
6:
As
a
new
trustee,
what
is
the
maximum
size
of
her
first
Kiva
Zip
loan?
QuesSon
7:
What
are
her
payment
terms?
QuesSon
8:
How
can
she
receive
bigger
loans?
Jackie
is
an
acquaintance
that
heard
you
want
to
become
involved
with
Kiva
Zip
and
has
many
quesAons
for
you

10. What is a Trustee? 10
Types
of
Trustees:
OrganizaSons
&
Individuals
Trustees
are
organizaSons
or
individuals
who
have
strong
Ses
in
their
communiSes.
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
ü Endorse
borrower
for
a
Kiva
Zip
loan
" NOT
fund
borrower’s
Kiva
Zip
loan
ü Guarantee
borrower’s
character
in
public
" NOT
guarantee
borrower’s
loan
ü Support
borrower
throughout
the
process
" NOT
charge
borrower
a
fee
or
interest

11. 11
What are the core responsibilities of Trustee?
Borrower
SelecSon
Borrower
Training
Borrower
Endorsement
Loan
Process
Support
Repayment
Support
ü Select
borrowers
you
know
well
and
trust
ü Select
borrowers
whose
business
you
believe
in
ü Select
borrowers
you
think
have
the
capacity
to
repay
ü Help
borrowers
understand
how
Kiva
Zip
works
ü Emphasize
the
importance
of
lender
connecSon
ü Endorse
borrowers
who
demonstrate
knowledge
of
the
program
ü Endorse
deserving
borrowers
for
repeat
loans
ü Help
borrowers
complete
their
applicaSon
and
upload
their
photo
(if
needed)
ü Make
sure
borrower
has
answered
quesAons
truthfully
ü Provide
moral
and
technical
support
to
borrowers
ü Help
borrowers
manage
repayments
and
delinquencies
and
push
to
pay
if
needed
Trustees
play
a
pivotal
role
in
ensuring
Kiva
Zip
builds
a
strong
foundaAon.

12. 12
What is the lending process?
Kiva
Zip
Lending
Process
Steps
with
significant
trustee
involvement
1 2 3 4 5 6
Trustee
selects
&
endorses
borrower
Borrower
completes
loan
applicaSon
Trustee
reviews
applicaSon
Kiva
Zip
reviews
&
approves
loan
Loan
is
funded
&
disbursed
to
borrower
Borrower
repays
loan
and
updates
lenders
Trustee
idenAfies,
trains,
and
endorses
credit-­‐worthy
borrowers
Borrower
creates
profile,
incl.
photo,
personal
story,
and
business
descripAon
Trustee
reviews
info
on
the
loan
applicaAon
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

13. What are benefits of being a Kiva Zip Trustee? 13
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+
twi_er
followers
and
blog
subscribers
§ Kiva
Zip
has
over
100
trustee
partners
across
Kenya
§ Kiva
has
connecAons
to
insAtuAonal
donors
and
non-­‐profits
around
the
world
§ Kiva’s
lender
capital
enables
you
to
enhance
your
value
proposiSon
at
li'le
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
internaSonal
network
of
supporters
13

14. Scenario: Explain Kiva Zip to a potential trustee 14
Charles
is
interested
in
becoming
a
trustee
and
has
many
quesAons
for
you
Charles:
I
heard
you
are
applying
to
become
a
Kiva
Zip
trustee.
Can
you
tell
me
about
it?
Please
respond
to
his
quesSons
in
the
survey
on
the
right
side
of
the
screen.
QuesSon
9:
Can
a
trustee
be
an
organizaAon
or
an
individual?
QuesSon
10:
What
is
NOT
the
role
of
a
trustee?
QuesSon
11:
How
should
I
support
borrowers
during
their
applicaAon
process?
QuesSon
12:
How
can
I
benefit
from
being
a
trustee?

15. How many loans can a trustee endorse? 15
Each
Kiva
Zip
trustee
qualifies
for
a
trustee
Ser,
which
determines
the
Kiva
Zip
Trustee
Tiers
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 month Credit Level 3
Paused /
Closed 0 n/a
#
of
Completed
Loans:
Number
of
loans
that
have
been
fully
repaid
number
of
loans
trustee
can
endorse
and
the
credit
level
of
those
loans.
To
qualify
for
a
specific
Aer,
trustee
needs
to
meet
min
repayment
rate
and
loans
completed
requirements.
CumulaSve
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

16. 16
Each
Kiva
Zip
borrower
qualifies
for
a
credit
Kiva
Zip
Credit
Ladder
Credit
Level
How much is each new or repeat loan?
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-Weekly
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
Credit
level
of
a
new
borrower
depends
on
which
Trustee
Tier
his/her
trustee
is
qualified
for.
level,
which
determines
the
maximum
amount,
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

17. What are the next steps? 17
A_er
selecAng
borrowers,
trustee
needs
to
train
borrowers
on
Kiva
Zip.
InstrucAons
and
material
for
borrower
training
can
be
found
in
the
Trustee
Resource
Center.
A_er
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
and
mobile
phone
number.
Borrower
will
be
sent
instrucAons
on
how
to
complete
the
loan
applicaAon.

18. How to select borrowers to endorse? 18
Borrower
selecSon
is
one
of
the
most
significant
roles
that
trustees
play
in
their
relaAonship
with
Kiva
Zip.
Lenders
across
the
world
place
their
trust
in
the
trustees
to
idenAfy
credit-­‐worthy
borrowers
with
strong
characters.
Evaluate
Trustee-­‐Borrower
RelaSonship
Evaluate
Borrower
Capacity
to
Pay
ConsideraSon
Best
PracSce
1.
Length
of
Sme
trustee
has
known
the
borrower
At
least
6
months
2.
Distance
between
trustee
and
borrower
Same
village,
town,
or
city
3.
Frequency
of
interacSon
between
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
relaAonship
between
trustee
and
borrower
Mentor
/
teacher,
congregant,
close
friends,
community
leader
6.
Number
of
common
acquaintances
The
more
the
be'er
ConsideraSon
Best
PracSce
1.
Length
of
operaSon
(historical
business
performance)
At
least
6
months
in
operaAons;
if
newer
business,
then
higher
trustee
involvement
is
recommended
2.
Current
financial
situaSon
and
expected
revenue
/
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

19. Scenario: Explain Kiva Zip to a potential trustee 19
Charles
is
also
interested
in
becoming
a
trustee
and
has
many
quesAons
for
you
Charles:
InteresAng...
Can
you
give
me
more
details
about
how
the
system
works?
Please
respond
to
his
quesSons
in
the
survey
on
the
right
side
of
the
screen.
QuesSon
13:
What
is
the
maximum
number
of
loans
a
new
trustee
can
endorse?
QuesSon
14:
How
do
I
become
a
Tier
1
trustee?
QuesSon
15:
How
does
the
borrower
credit
ladder
work?
QuesSon
16:
What
kind
of
candidate
would
be
an
ideal
borrower?

20. What resources are available? 20
Kiva
Zip
Kenya
Trustee
Resource
Center
provides
informaAon
and
material
to
support
trustee’s
role.
Please
read
through
the
Kiva
Zip
Policies
and
Kiva
Zip
Processes
secAons
of
the
resource
center
when
you’re
ready
to
endorse
a
borrower.
Link to Trustee Resource Center:
https://kiva.app.box.com/s/44sp7ccksdvxoleiperd

21. 21
Kiva Zip Kenya Key Contacts
To find out more about Kiva Zip
h_ps://zip.kiva.org
To access Trustee Resource Center
h_p://Snyurl.com/TrusteeResourceCenter
To contact Kiva Zip Kenya
contactzip@kiva.org
+254
700
254
851

22. 22
Thank you for
becoming a trustee!!
We look forward to working with you.