• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Vittana's First 1,600 Students
 

Vittana's First 1,600 Students

on

  • 232 views

 

Statistics

Views

Total Views
232
Views on SlideShare
232
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Vittana's First 1,600 Students Vittana's First 1,600 Students Presentation Transcript

    • Education changes everythingFive Reasons MFIs Don’t Lend to Students & 1,600 Why They Should Global Microcredit Summit 2011 Nick Cain Regional Program Manager, LatAm + Africa nick@vittana.org http://vittana.org/mcs
    • What is ? U.S.-based product development TA provider & p2p funder. Creates student loan markets through partnerships with MFIs. Founded May 2009 Loan products for 20 partner MFIs university and $1.3MM disbursed to 12 countries vocational education >1,600 students. at leading MFIs.
    • Myth #1: Students won’t repay 2011 PAR 30 (%) 5 Q3 PAR 30 - Portfolio 4.24 Subsets: 4 4.01 3.51 • Interest-only grace period: 0.0% 3 3.2 • Student unemployed at time of 2 loan: 0.0% 1 • Loans > $1,000: 4.36% 0EOY 2010 Q1 2011 Q2 2011 Q3 2011 http://vittana.org/mcs
    • Myth #2: Students can’t find co-signersVittana Students with Co-Signers 2011 Market Study: – 94% of clients are willing to a co-sign a student 100% loan for their child. – 74% of clients are capable of finding a co- signer elsewhere in the family or in the community. http://vittana.org/mcs
    • Myth #3: MFIs will always lose money on this product Return on Student Loan Portfolio5.00% Conditions4.00% Interest-free Year 1: 50%3.00% capital: Year 2: 25% usage2.00% Cost of non- 10%1.00% P2P capital: Product APR: 18%0.00%-1.00% Avg loan size: $1,000 300 1050 2000 4500 Total Active Student Borrowers http://vittana.org/mcs
    • Myth #4: Student loans are too big Asia: Latin America: Avg Loan: $500 Avg Loan: $815 Middle East: Avg Loan: $1,200 Sub Saharan Africa: Avg Loan: $650 http://vittana.org/mcs
    • Myth #5: There aren’t enough jobs Change in Monthly Income Post-Graduation Nicaragua 45 40 40 35 # of students 30 25 20 17 15 12 11 10 5 3 5 1 1 0 0 $100 $200 $300 $400 $500 $600 $700 ∆ monthly income ($) Survey of 90 Vittana graduates in Nicaragua: – 76% are currently employed in their area of study – 78% reported a raise or promotion after graduation http://vittana.org/mcs
    • Results and Impact to Date PAR 30 3.51% (as of July 31, 2011) 140% confirmed income change 275% projected income changeIsidro Garay Stephen Lumanog Mauda MairenaCountry Nicaragua Country Philippines Country NicaraguaCurrent Dentist Current Welder Current CustomsProfession Profession Profession OfficialConfirmed 300% Confirmed 130% Confirmed 130%income ∆: income ∆: income ∆: http://vittana.org/mcs