Analysis into which factors drive faster or slower funding times for loans. Based on qualitative analysis into 100 fast and slow-funding loans, and quantitative analysis of all loans made through to the end of August 2009.

4. 1. Qualitative analysis: Comparison of 50 fast and 50 slow-funding loans Description length, smiling entrepreneurs, age of entrepreneurs 18% 10% 70% 915 28.3 841.5 $1,785 50 Slow Younger entrepreneurs do appear to have faster funding times 38% % young Smiling entrepreneurs do appear to have faster funding times 46% % smiling No obvious impact 72% % picture related to business Long descriptions do not necessarily result in fast funding 842 Description length 0.1 Avg funding time per dollar (mins) 0.6 Avg funding time (hours) Slow-funding loans are larger $565 Avg loan size 50 No of loans Fast

9. 2. Quantitative analysis: All loans Africa accounts for around 30% of all loans Sub-Saharan Africa South America East Asia Central Asia Central America 0% 20% 40% 60% 80% 100% 20% 40% 60% 80% USA Pacific Middle East Eastern Europe 100% Loan value by region and sector $89.9m loan value; Data until August 31 st 2009 Food Retail Agriculture Services Clothing Transport Construction Other $24.6m $20.8m $15.4m $9.2m $7.8m $2.7m $2.4m $7.1m $89.9m

10. 2. Quantitative analysis: All loans Around 75% of loans are made to women Sub-Saharan Africa South America East Asia Central Asia Central America 0% 20% 40% 60% 80% 100% 20% 40% 60% 80% USA Pacific Middle East Eastern Europe 100% Female Male $67.4m $22.5m $89.9m Loan value by region and gender $89.9m loan value; Data until August 31 st 2009

11. 2. Quantitative analysis: All loans Group loans are more common in Africa and South America Sub-Saharan Africa South America East Asia Central Asia Central America 0% 20% 40% 60% 80% 100% 20% 40% 60% 80% USA Pacific Middle East Eastern Europe 100% Loan value by region and group size $89.9m loan value; Data until August 31 st 2009 1 2 3 4 - 6 7 - 10 11 - 20 > 20* $68.7m $0.5m $1.3m $7.7m $2.6m $7.9m $1.4m $89.9m * > 20 entrepreneurs in a group

12. 2. Quantitative analysis: All loans Group loans fund more quickly than single loans 0 1 2 3 4 5 $0m $10m $20m $30m $40m $50m $60m $70m $80m $90m Funding time: Single vs. group loans $89.9m loan value; Data until August 31 st 2009 Average minutes to fund per dollar Single loans Group loans Loan value Group loans 1.3x faster

13. 2. Quantitative analysis: All loans The larger the group, the quicker the funding time 2 0 1 2 3 4 5 $0m $2m $4m $6m $8m $10m $12m $14m $16m $18m $20m $22m Funding time: Number of entrepreneurs $21.3m loan value; Data until August 31 st 2009 Average minutes to fund per dollar 3 4 - 6 7 - 10 11 - 20 > 20 Loan value Large groups 2.6x faster than groups of 3 – 6 entrepreneurs

14. 2. Quantitative analysis: All loans Loan size appears to have little impact on funding time Funding time: Loan size $89.9m loan value; Data until August 31 st 2009 0 1 2 3 4 5 6 $0m $10m $20m $30m $40m $50m $60m $70m $80m $90m < $400 $401 - 600 $601 - 800 $801 – 1,000 $1,001 – 1,500 $1,501 - $3,000 > $3,000 Average minutes to fund per dollar Loan value

15. 0 1 2 3 4 5 6 7 8 $0m $10m $20m $30m $40m $50m $60m $70m $80m $90m 2. Quantitative analysis: All loans Region has a significant impact on funding time Funding time: By region $89.9m loan value; Data until August 31 st 2009 Loan value Average minutes to fund per dollar Eastern Europe Africa South America East Asia Middle East Central Asia Central America Pacific North America Other Africa 1.9x faster than Central Asia

16. 0 1 2 3 4 5 6 7 8 9 $0m $10m $20m $30m $40m $50m $60m $70m $80m $90m 2. Quantitative analysis: All loans Of the countries with over $2m in loan value, Nicaragua has the slowest funding time; 4 African countries have the fastest Funding time: By country $89.9m loan value; 17 countries with over $2m in loan value; Data until August 31 st 2009 Average minutes to fund per dollar Loan value Nicaragua Tajikistan Azerbaijan Lebanon Cambodia Vietnam Bolivia Nigeria Pakistan Togo Paraguay Peru Mexico Uganda Tanzania Ghana Kenya Other Eastern Europe Africa South America East Asia Middle East Central Asia Central America Pacific North America Other Uganda, Tanzania, Ghana and Kenya on average 3.0x faster than Nicaragua

17. 0 1 2 3 4 5 6 7 8 $0m $10m $20m $30m $40m $50m $60m $70m $80m $90m 2. Quantitative analysis: All loans Sector does not appear to have a significant impact on funding time Funding time: By sector $89.9m loan value; Data until August 31 st 2009 Average minutes to fund per dollar Loan value Food $24.6m Retail $20.8m Agriculture $15.4m Services $9.2m Clothing $7.8m Transport $2.7m Construction $2.4m Other $7.1m $89.9m Food, Services and Agriculture on average 1.3x faster than Clothing and Retail

18. 2. Quantitative analysis: All loans Gender appears to significantly impact funding time Funding time: Loan size $89.9m loan value; Data until August 31 st 2009 Average minutes to fund per dollar Loan value Women fund 1.5x faster than men 0 1 2 3 4 5 6 7 $0m $10m $20m $30m $40m $50m $60m $70m $80m $90m

19. 2. Quantitative analysis: All loans Videos appear to reduce funding time (although it is a small sample size) Funding time: Loans with videos $89.9m loan value; Data until August 31 st 2009 Average minutes to fund per dollar Loan value: $137k Loan value: $89,808k

20. 0 1 2 3 4 5 6 7 $0m $10m $20m $30m $40m $50m $60m $70m 2. Quantitative analysis: All loans Larger loans do appear to take longer to fund for single entrepreneurs Funding time: Loan size $68.7m loan value; Single entrepreneurs only; Data until August 31 st 2009 Average minutes to fund per dollar Loan value < $400 $401 - 600 $601 - 800 $801 – 1,000 $1,001 – 1,500 $1,501 - $3,000 > $3,000

21. 0 1 2 3 4 5 $0m $10m $20m $30m $40m $50m $60m $70m $80m $90m 2. Quantitative analysis: All loans Partner star rating does not appear to significantly impact funding time Funding time: Partner star rating $89.9m loan value; Data until August 31 st 2009 Average minutes to fund per dollar Loan value 1 2 3 4 5 Note: Partner star rating reflects the risk factor of that partner (MFI). A star rating of 5 represents the least risky MFIs

22. 0 1 2 3 4 5 6 7 8 $0m $1m $2m $3m $4m $5m $6m $7m $8m $9m $10m $11m 2. Quantitative analysis: All loans Currency risk rating does not appear to significantly impact funding time Funding time: Currency risk rating $10.0m loan value; Data from June 25 th until August 31 st 2009 Average minutes to fund per dollar Loan value Partner takes all foreign exchange risk Lender shares some foreign exchange risk

24. Impact of gender on loan funding time Average minutes to fund per dollar Impact of sector on loan funding time Average minutes to fund per dollar Impact of loan size on loan funding time Average minutes to fund per dollar Women get funded twice as quickly as men 3. Quantitative analysis: Tajikistan loans Gender and sector affect loan funding times; loan size does not Services appears to be the fastest-funding sector, transportation appears to be the slowest However, these are relatively small sample sizes Surprisingly, agriculture appears to be relatively slow-funding Loan size appears to have relatively little effect on average funding times per dollar # of loans 3,778 3,978 215 2,881 1,516 1,101 1,378 363 302 1,249 1,218 1,404 1,397 2,488 Source: 7,756 Tajikistan loans with at least 3 lenders contributing to them