By Rose Larsen, KF19 Colombia, with excerpts provided by Wesley Schrock, KF19 Honduras, and Luan Nio, KF18 Nicaragua/KF19 United States
Loan officers are the hidden heroes behind the Kiva model.
Lenders , borrowers , Kiva staff  and Kiva fellows  all show their beautiful faces somewhere on Kiva.org, and while Kiva’s field partners  have profiles of their own, there is little explanation or clarity behind who actually, physically, goes to the clients’ businesses, evaluates their requests, delivers loans and picks up repayments (hint: it’s loan officers!). Likewise, loan officers have varying degrees of knowledge about (or interest in) what Kiva is – some are enthusiastic supporters, while others are just doing their job, the photos and borrower profile information just one extra step as they navigate the hundreds of borrowers that they work with.
Yet in my experience, no matter what their attitude is towards Kiva, these loan officers care deeply about their clients, are well known in their sector or neighborhood, and work long hours to ensure that anyone who wants a loan has the chance to apply for one.
I got to know quite a few while here in Colombia, as I accompanied a different loan officer on each trip to the field. Loan officers are often a Kiva Fellow’s best friend in the field, so I asked a few other fellows what their experiences with loan officers was like.
Unsurprisingly, just as all of our field partners vary immensely, the jobs and lives of the loan officers vary across different regions. To give you a better idea of what a somewhat hidden yet key part of the Kiva process looks like, we’ll travel around the world visiting three different microfinance institutions and getting to know three different loan officers, learning about why they do the work that they do, and seeing a little bit of their daily routine.
Loan Officer #1: Jarling, Loan Officer with COMIXMUL, Honduras
Kiva Fellow: Wesley Schrock, KF19 Honduras
MFI Background: COMIXMUL  is a savings and loan cooperative exclusively for women in Honduras. They are a new Kiva field partner and have yet to post a loan to the site (although they might have a few up by the time this blog is posted). COMIXMUL hopes to fund three specific products on Kiva: agriculture loans, youth entrepreneurship loans and solar panel loans – all products for which traditional funding is limited.
Personal Background: Jarling, who has worked as COMIXMUL loan officer for 3 years, is 30 years old, married, and has 2 children. Previously, he worked as a sales representative for a drinking water company. This sales and customer service experience made him an ideal candidate for COMIXMUL’s loan officer training program. After successfully completing 2 months of training, Jarling was a full-fledged loan officer, responsible for building and maintaining his own loan portfolio. Unlike his previous employer, COMIXMUL offers a competitive salary, a benefits package, and the opportunity for career advancement.
In the Office: Loan officers work Monday through Friday from 8AM – 5PM and Saturday from 8AM – 12PM. The day begins and ends in the office, which Jarling walks to and from. Administrative duties, like making sure a client’s loan application materials are in order, require an hour or two at the start and end of each day. Jarling works out of a shared office, but has his own small desk with a desktop computer. While clients do not use email, all clients have mobile phones. Hence, all client communication is done in person or over the phone.
In the Field: The majority of the day is spent riding around on a COMIXMUL-owned motorcycle visiting existing clients or promoting the cooperative in an effort to gain new members. Jarling might visit an existing client simply as a courtesy, but more likely because the client is delinquent, or wants to refinance an existing loan, or is seeking a new loan. He manages a portfolio of 110 clients whose businesses include convenience stores, food stands or restaurants, new and used clothing stores, bakeries, and pastry shops. The day’s schedule permitting, lunch is taken at home; however, he often has to lunch in restaurants or food stands.
*In the video, Jarling is meeting with a client, Maria, who runs two clothing stores. COMIXMUL has helped her to expand her business; when she started with the cooperative 3 years ago, she had only 1 store. Jarling paid Maria a visit because she was over a week late in making her December loan payment. Given Maria’s excellent repayment history, the tone of the visit was friendly; Jarling just wanted to find out the reason for the delinquency. Maria explained that she had extra holiday expenses, but promised to make the repayment the following week. Taking her for her word, Jarling amicably departed.
Implementing Kiva: Jarling has moved up the ladder at COMIXMUL: as a veteran loan officer he now serves an exclusively urban clientele. His initial territory was a rural area, in which agricultural loans predominate. From a loan officer perspective, an urban clientele is more desirable because urban areas are easier to serve – distances are shorter, mobile phone reception is better, and the routes are safer. Given his territory, Jarling will only be working with one Kiva product, youth entrepreneurship loans. COMIXMUL’s established processes mimic the Kiva model: loan officers are accustomed to taking client photos, writing client biographies, and tracking client progress. Hence, he doesn’t anticipate that implementing Kiva will pose significant challenges.
Loan Officer #2: Mario, Loan Officer with Fundación Mario Santo Domingo, Colombia
Kiva Fellow: Rose Larsen, KF19 Colombia
MFI Background: Fundación Mario Santo Domingo (FMSD)  has been with Kiva for over three years, and has been working in the microfinance sector for more than 30 years. They work primarily with borrowers on the Caribbean coast, in the cities of Barranquilla and Cartagena. Most of their loans are for traditional urban businesses like beauty salons, corner stores and fruit stands. They also have many other social projects, including trainings for entrepreneurs, affordable housing projects, and even an ecological high school for poor children on Isla Baru.
Personal Background: Mario has been a loan officer for FMSD for almost 21 years. He studied accounting and financial administration at a local university, and says that he never imagined working as a loan officer. However, one of his professors was also a director at FMSD and encouraged him to take the exam to become a loan officer. Mario lives in a northern neighborhood in Barranquilla with his wife and two children, and has been assigned a variety of neighborhoods in the southern sectors to work in. FMSD helped him buy a car through loans, so now he is easily able to cover the wide swath of city he has been assigned. Though it is challenging to deal with so many clients, and to often have to sort through difficult situations, Mario loves that his job allows him to work with people, and seeing people improve their lives through microloans makes it all worth it to him.
In the Office: Mario generally spends mornings in the office, working from 8 to 12:30 processing paperwork, organizing clients’ loan applications, and calling clients. His phone is constantly ringing with calls from both current and potential clients. He also attends weekly credit committee meetings with other loan officers and his boss, to discuss new clients and determine whether or not they will receive loans.
In the Field: Mario’s afternoons are spent in the field, visiting clients all over Barranquilla. After stopping home for lunch, he heads out in his car to visit new clients, check in on current clients and follow up with clients who have finished their loans. Mario currently manages 260 clients, visiting 4 or 5 per day when he needs new information from them, or up to 9 when he’s just checking in to see how they are doing. Another important part of an FMSD loan officer’s job is promotions, or attracting new clients – Mario is constantly looking around for new businesses near his current clients to offer loans to.
On the day I spent with Mario, we spent time with 3 clients and stopped in to say hello to 2 more. One visit was with a seamstress who was asking for a non-Kiva loan (any loan over $1500 is provided with FMSD’s other funding source, although it has a higher interest rate), another visit was with a new Kiva client, a woman selling lotions and perfumes out of her home, and the final visit was to check in on a client who wanted a new loan but couldn’t find a co-signer to back the loan.
Implementing Kiva: Mario is a great believer in Kiva, even though taking photos of clients and filling out Kiva forms adds some extra time to his work. Though there are many other banks and NGOs providing loans in Barranquilla, Mario says that working with Kiva distinguishes FMSD from the rest.
Making a difference: There is no doubt that the loan officer job is very difficult. Mario struggles to maintain positive relationships even with clients who are constantly late with repayments. But he knows that he is making a difference not only in the lives of individual clients, but in Colombia as a whole. When FMSD first started giving out loans in 1984, it was the only player in the field. Now, many commercial banks and other organizations are giving out loans too, and Colombia is becoming more developed. He notes that by offering his clients, many of whom are very poor, access to financial services, he is giving them more confidence in themselves. They see that someone trusts them to take out a loan and this encourages them to follow their dreams and work hard to improve their lives.
But don’t take my word for it, check out what Mario has to say about whether a loan officer’s job is fulfilling or not:
Loan Officer #3: Nick, Loan Officer with ACCION San Diego, USA
Kiva Fellow: Luan Nio, KF19 United States
MFI Background: ACCION San Diego  is one branch of a microfinance institution that operates all across the US as well as internationally. They are new to Kiva, with just four months on Kiva’s site and 23 loans so far. They help small business owners and entrepreneurs in the San Diego area get funding, which can be complicated for new businesses in the US, and also offer business training and workshops on important subjects like marketing, finance, and legal issues.
Differences between US partners and international partners: Luan is unique in that she worked with a partner in Nicaragua as a member of KF18, and now is serving in the US in KF19. She offers some perspective on the differences in loan officers’ roles in the US versus a less developed country:
Based on my experience between Nicaragua and the US, the main differences I can see are as follows:
- More use of technology here, especially when communicating with clients. Loan officers here are more often in the office than in the field because they use e-mail and phone more, and they have fast cars and highways so site visits don’t require much time. Everyone here has internet and some people (including loan officer Nick) have 2 computer screens.
- Both clients and loan officers here fully grasp the idea of Kiva and are able to exploit it to the fullest. ACCION SD, for example, aims to do mostly videos for both new borrower profiles as well as for journals. Kiva clients here may use their Kiva profile for marketing, though we haven’t seen this yet since ACCION SD is just getting started with Kiva.
- Here, Kiva lenders and Kiva borrowers often live in the same country, so the borrower-lender connection might be stronger. You can actually visit the business you lent to in person here. It is therefore easier for loan officers to “sell” Kiva to clients.
As the three profiles show, while the main functions of loan officers’ jobs around the world are the same, their lives can vary immensely.
Their jobs are divided between time in the office and time in the field, but the amount of time spent in each depends on a variety of conditions:
- Where their borrowers are located – loan officers with borrowers who are more spread out or in rural areas with bad roads spend more time in the field. All three loan officers profiled spend less time in the field than some of their counterparts, because they work mainly in urban areas.
- Levels of technological development in the country – in Honduras and Colombia, mobile phones are widespread, cutting down on some visits as loan officers can call most of their clients for quick questions, and are also able to schedule appointments in advance. In less developed areas with little access to phones, loan officers must visit clients every time they have a question, and may arrive at the client’s house when the client isn’t home. In the US, even fewer visits are required as many items of business can be taken care of via phone and email, which most borrowers have access to. Also, roads are better so trips to the field don’t take as long.
- Microfinance Institution (MFI) policies – Because FMSD clients repay their loans by going to a bank and transferring the money to FMSD, loan officers don’t have to visit clients for repayments. ACCION San Diego clients also mail checks into the MFI. This means much less time in the field than organizations that require loan officers to pick up repayments (even when it’s just a few dollars a week).
Still, in the end, these loan officers in North, Central and South America do have a lot in common – they are all dedicated to their clients, which means that even if following Kiva’s extra rules and procedures (filling out extra paperwork and taking photos of their clients) adds some time to their day, they are each happy to put in the extra work so that clients who normally wouldn’t get a loan finally have access to credit. There are hundreds or perhaps thousands of loan officers around the world who work with Kiva clients, and from what I’ve heard from other fellows, it’s safe to say that Jarling, Mario and Nick are not atypical in their commitment to their clients.
So the next time you read a detailed borrower profile, spot an especially well-framed photo or receive an interesting journal update, think about all the work put in behind the scenes by a hardworking loan officer!
Special thanks to Jarling Ramírez, Mario Moreno and Nick Miluso for agreeing to let a Kiva Fellow follow them around all day, even though they are all incredibly busy!
Support these loan officers and the organizations they work for by making a loan to a borrower from COMIXMUL , FMSD  or ACCION San Diego . Want to meet some loan officers in person? Read more about the Kiva Fellows Program , and then apply to be a Fellow !