Value of Loans Outstanding

/in /by

H-30

DEFINITION:

Number of outstanding loans in the eligible financial intermediary institution portfolio at the end of the reporting period.

GUIDANCE:

This indicator reflects the value of eligible loans an intermediary has outstanding at the time of reporting. The metric should include the value of all loans disbursed to clients that have not been fully repaid and have not been written off at the end of the reporting period. “Eligibility” means those loans that are or can be supported under the terms with the intermediary.

Note:

  • Different methodologies exist in what “supported” means. Some institutions pursue an allocation approach (supporting loans directly by passing on preferential terms, e.g. longer tenor) or a portfolio approach (supporting an entire eligible portfolio and measuring its growth over time). Both are possible but would need to be specified under the respective reporting arrangement.
  • “Outstanding” implies a stock variable at a certain point in time. This metric does not measure the value of loans issued over a period of time. Especially for on lending that has shorter tenors (e.g. under a year, for example in microfinance) or longer tenors than the reporting period, the value of outstanding loans may not be the same as the total value of loans supported. For this, refer to the “Average Tenor of Loans Outstanding” to compute the value of loans supported over time.
  • Unlike the number of loans, the value of loans also reflects the value lent to clients as several loans can be added up.
  • This is a parent indicator. It can be disaggregated and specified in various ways given the DFI/practitioner’s approach, project objective, or country context, for example by ownership/ leadership (sex, age etc.), size of the companies (e.g. micro, small, medium), sectors, geography (e.g. rural/urban), age or growth of company (young firms, gazelles, etc.), innovation, etc.
  • This indicator applies to intermediated financing though commercial banks, microfinance institution, a non-bank financial intermediary, or other financial institutions. Refer to metrics under “Private Equity and Investment Funds” for those types of intermediated financing.

Applicability: intermediated finance, not Fund investment.

Related indicators: This indicator should have the same scope as the number of loans outstanding.

Unit: currency