Post Disbursed Loans

Post Disbursed Loans

About 1% of loans at Kiva are disbursed only after they are fully funded by lenders. These are referred to as "Post Disbursed Loans". For more information on these loans, please join Post Disbursed Loans team.

Here is a good explanation of PDL loans from Kiva lender Jennifer.

Show PDL explanation

Hi everyone! I just got off the phone with a very helpful Kiva representative. I've been trying to get a fuller understanding of the way that post-disbursed loans work. If you read the loans carefully (like we all do at LLL!) then you may have noticed that occasionally a loan will have a post-disbursal date that is actually a few days before the expiration date. In other cases, the post-disbursal date might be a month or even two after the loan's fundraising period on Kiva ends.

Here is some of the information that I received:

ABOUT PDLs GENERALLY:

  • Approximately 1% of Kiva loans are post-disbursed. Often borrowers need the money much, much sooner, so many, if offered the post-disbursed option, will choose to look elsewhere.
  • Most partners who offer post-disbursed loans do so because of their own liquidity issues: they simply don't have the cash on hand to make a loan, and have to wait for it to come in from Kiva. I asked if this meant that most of the lenders offering post-disbursed loans were newer FPs that were still developing their lending capabilities. Kiva is going to check on this and get back to me, so I'll share the answer when I know!

ABOUT THE DATES:

When a FP gives a borrower a PDL, they are asked to assign an estimated date of disbursal. They are given a 90-day window. So:

  • A FP who has a disbursal date for the loan that actually falls before the expiration date has decided -- based on internal calculations of how well their loans fare on Kiva, the amount requested, the type of loan, etc. - that they are pretty confident that the loan will fill, and fill before its 30-day Kiva period.
  • A FP who lists a later date is not as confident that the loan will fill, and also does not have enough liquidity to advance the money for any amount of time - they have to literally have the Kiva money in their hands to disburse to the lenders.

THE MOST IMPORTANT POINT:

Any PDL loan that doesn't fill will not be given to borrowers. A post-disbursal date is an ESTIMATE, not a guarantee. If the p-d date falls before the 30-day Kiva expiration date, the loan can still expire and the borrowers will get nothing. So, bottom line: we still need to be very careful and vigilant about those expiration dates! Sorry for the length of this message!

Post Disbursed Loans Summary

Number Of Loans Total Loan Amount Total Funded Amount Total Amount Needed Number of Countries Number of Partners
42 54,725 17,225 37,500 8 11
All dates/times on this page are displayed in UTC timezone, unless otherwise specified.

Currently Fundraising Post Disbursed Loans