Analytics and Rating system | Village Invest

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Analytics and Rating system

Your investments are helping to build a sustainable economic future in some of the poorest areas of the world. Nonetheless, we need to ensure that we are working with villages that can repay your loan on the terms it was lent. Village Invest wants to keep your investment risk low, but the social impact of your loan high.

To do this Village Invest has created a comprehensive data analytics, rating and tracking tool (DART) that assesses each level of the lending chain, starting at the household level.  It applies ratings across a range of criteria to assess transparency, governance and accountability, social inclusion, organisational effectiveness and financial discipline. The end rating is a combination of ratings at an individual, group and village level with additional criteria at each level. An internal self-assessment is carried out twice a year by each village and an external rating assessment is conducted by Village Invest once a year. You can be sure therefore that your money is being invested at minimum risk.

The rating is not intended to be “advice” in the sense of professional financial advice, and Village Invest is not making a recommendation as to the credit worthiness of a community organisation.

Help us to build a strong lending community

To minimise risk, Village Invest does not advertise loans from villages rated less than 75%. The rating system has five levels of outcome and only the top two are eligible to be included on the Village Invest platform. To ensure that more villages achieve top ratings, Village Invest is committed to building strong village savings and credit groups and to do this we provide further trainings to those villages that are most likely to succeed. You can sponsor a village if you want to help them achieve higher ratings by donating to Village Invest.

What does the rating mean?

Green+
Minimal risk

A Green + rating is exceptional: it is a village that has secured the highest rating (Green) for three consecutive years.

Green
Minimal risk

A GREEN rating shows that the village has achieved at least a 90% rating score. Villages that achieve this rating are run efficiently, effectively and transparently, repay on time (zero defaults), exceed international standards, are inclusive about the way that they are managed and run, and consistently involve the very poorest people who traditional Microfinance Institutions consider too risky to lend to.

Yellow
Low risk

A YELLOW village has been rated 75% or above. Performance is satisfactory overall, the village organization is run effectively, efficiently, and transparently, and is meeting international standards, but there may be one area of assessment that needs improvement. Overall investment is considered low risk, but would need to be monitored and followed up closely.

Amber
Moderate risk

An AMBER rating means that a village has been rated between 60 and 74%. Performance is weak in more than one area, and is considered moderately risky. Needs more support and technical assistance: these villages seek donations to help cover their training costs to achieve higher ratings.

Red
High risk

High-risk villages where the rating is below 59%. These villages are underperforming in several areas of assessment. They are not featured on the platform. However, your loans and donations help us to build capacity in these villages so that in the future we will be able to include them.