KIVA

=__KIVA – Loan Justification__= Your Name: Sarah Watts

Potential Recipient URL: [|__http://www.kiva.org/lend/349243__]

Name: Bathuleg Batochir

Country:Mongolia

Type of Loan: Health-medicine for a pharmacy

Criteria

1. Risk

Borrower (Credit history/Personal character): She is a “hard working, diligent woman”. I think that if she is trusted by people with their medication we should be able to trust her with $25.

Field Partner: XacBank

Risk Rating: Five Stars Delinquency Rate: 0.05% Default Rate: 0.10%

Country Risk (Economic, Political, Natural Disaster):Mongoliais not prone to any type of natural disaster. It is currently not having any economical problems that should prevent Bathuleg from repaying the loan. There is also nothing political that should prevent her from repaying the loan.Mongoliais not a rich country, but Bathuleg seems to be doing well for herself, so I do not think that anything related to her country would keep Bathuleg from repaying the loan.

2. Business Plan - [|__Small Business Start Ups__]

Potential for success: There is a large possibility for success. Once Bathuleg is able to buy and sell the medicine for a profit, she will be able to buy more. This will help her community to stay healthy, as well as earn her some profit and allow her to repay her loan.

Potential for sustainability: I believe that she will be able to keep the business running because at some point or another everyone needs medication. If she sells the medicine for a profit she will be able to buy more. If she continues in this way she will have no problem keeping this business afloat.

Potential for regional economic benefit: The medicine that she will buy will help an entire community to stay healthy. When someone in her neighborhood gets sick she can give them the correct drug to cure them.

3. Borrower

Perceived level of need: The level of need is high, because without the proper medication many people could come down with serious sicknesses that could result in a serious amount of pain or even death.

Financial responsibilities/commitments of individual: Bathuleg has a plan to have the full amount of the loan repaid in just over a year. Every month she would have to pay $121.15 to stay on target. I do think that she could stay on track with her payment because medication is always returning a profit because everyone needs medicine sometimes.

4. Summary

I believe that Bathuleg Batochir should receive the investment because she will use this money to buy medicine that will keep her neighborhood healthy and strong. The medication that she buys she will sell for a profit that will allow her to buy more medication and pay back her loan.Mongoliais currently not in any form of conflict, or prone to any natural disaster, that should prevent Bathuleg from repaying the loan. There is also a very small chance that the repayment would be lost in transfer, because XacBank, the field partner for this loan, has a five star rating. If we invest in Bathuleg's pharmacy I believe that we will help many people receive medication, help Bathuleg support her family, and be repaid in just over a year with a very low amount of risk.

Potential Recipient URL: []

Name: Flor De Rosas Marisacal Group

Country:Bolivia

Type of Loan: Food-Fish Selling

Criteria

1. Risk

Borrower (Credit history/Personal character): This group has never requested a loan before, but the head of the group, Paulina, has been selling fish for six years, and has raised six children, so I believe that she is a hard working woman.

Field Partner: Pro Mujer

Risk Rating: Four Stars Delinquency Rate: 0.14% Default Rate: 0.00%

Country Risk (Economic, Political, Natural Disaster):Boliviais prone to flooding in the summer which could affect the repayment rate if a flood were to destroy the place where Paulina sells the fish. That being said, the repayment rate is only seven months. There is no other obstacle related toBoliviathat should prevent the loan from being repaid.

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

Potential for success: The potential for success is high because the loan will allow Paulina to get the fish for her business differently and therefore be able to generate more income.

Potential for sustainability: The potential for sustainability would be high because with the extra profit that she would make would allow her to continue buying fish in the easier manner, which would help her generate a larger income to support her large family.

Potential for regional economic benefit: This loan would not only help Paulina, but it would also help her six children and husband. This loan will help Paulina's family, all of the other people in the group and all of their families. This one loan will help at least six families directly.

3. Borrower

Perceived level of need: The need is increased by the fact that it is not only one person that we would be lending to, but six. With one loan we will help many people.

Financial responsibilities/commitments of individual: This group is scheduled to have the loan fully repaid in seven months. They will have to repay: I do think that they would stay on track because Pro Mujer has a 0.00% default rate.
 * January 2012 || $245.84 ||||  ||   ||
 * February 2012 || $491.69 ||||  ||   ||
 * March 2012 || $245.84 ||||  ||   ||
 * April 2012 || $245.85 ||||  ||   ||
 * May 2012 || $245.78 ||  ||   ||   ||

4. Summary

I think that the Flor De Rosas Marisacal Group would be a superb choice for the class to lend to because with this one loan we can help many people and their families. They would use the money to increase the inventory in their stores and the materials to make the inventory, which would increase their profit considerably. This would improve all of their, and their family’s, lives. I do not believe that the money would get lost in transfer because Pro Mujer, the field partner, has a four star rating and a 0.00% default rate. My only concern is that in the summerBoliviaoften floods. Every investment comes with risks, and I think that this is a good one to take. We have the opportunity to help many people with only one loan, so I believe that despite the risk of flooding we should invest in the Flor De Rosas Marisacal Group.