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Kiva.org - Social Change through personal online Microfinance
Maybe you've heard of it?
www.Kiva.org is a social change non-profit that empowers individuals with internet access and a paypal account with the capacity to microfinance directly to borrowers in the developing world through no-interest loans. It's the same basic principles of microfinance that Bangladeshi economist Muhammad Yunus won the 2006 Nobel Peace Prize.
After easily raising over $450 online for St. Jude Children's Research Hospital through the elementary school where I have been a teacher's aid through AmeriCorps *NCCC, I was on a high. Not long after, I spoke with my sister's boyfriend (who also happens to be an Adam) and he reminded me about a site that we had talked about before, but that I had since forgotten - www.Kiva.org.
He told me he had provided part of 12 different loans to people in developing nations, most in need of supplies for their small business. Adam now only has 2 outstanding loans, currently being paid back as scheduled (monthly); his other 10 have been paid back in full (Kiva has a 99.9% repayment rate apparently) over the designated term (could be 3, 6 months, a year, etc.).
So I easily signed up as a lender at the end of March and quickly began 3 no-interest $25 loans to individuals in Peru and Paraguay in need of funds to buy supplies for their grocery store or retail business. Kiva background checks all their borrowers and appears to take the necessary precautions that most lenders would probably feel comfortable participating (at least I was). And the process was easy and PayPal handles all the transactions at no cost to Kiva.
My shortest loan will be fully repayed in 3 months, so I'll revise this entry if there are any issues, but I did just recently receive a journal update from a borrower who had received her loan and is very grateful.
Like myself, you may not be a huge fan of many of the principles of our current socio-economic system, but as an advocate for the ability of every person to affect positive change within his or her means, and within the means of this current economic system called capitalism, I think www.Kiva.org is a great way for everyday people to affect the sort of sustainable and grassroots change that we often talk about.
Have a look for yourself.
- Adam Greenberg's blog
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This is so cool. Thanks for
This is so cool. Thanks for the heads up, I'm definitely going to try Kiva out.
Dan Klein
Communications Intern
Young People For
People For the American Way Foundation
149 5th Avenue, 7th Floor
New York, NY 10010
212.420.0440 x25
www.youngpeoplefor.org
blog.youngpeoplefor.org
Awesome Post!!
I do agree that a forum such as Kiva is very good way for providing some degree of monetary assitance to the people in the developing world. I was recently in Zambia working on some paper work for GMCA CAPITAL Investments and we looked at the local interests on what in the country would be a jumbo loan ( 1billion kwacha) which is about 100, 000 dollars in the united states and we found that it was 50 percent interest-- the aggregated interest meaning some loans where 40 percent and others 60 percent. Any rational being would not take out that loan-- it is like the sub-prime loans overhere. But providing small loans to the rest of the people without interest payment assists many individuals and allows them actually do big things for their families. A loan for 500 dollars, can build a stand to sell goods and that can lead to actually buidling a house. I sent my grandmother in my village 1000 dollars and when I visted them they had a thriving business selling iceblocs-- which is a drink that takes water and sugar/ and a color ingredient and hardens it and the kids buy when they are coming from school. They suprised me when I also found out that they had added a room to the house my grandfather had built-- that is an economic as well as social development that usually takes many generations to accomplish. Access to capital is abursdly difficult in Africa and the requirements for those who actually manage to get the capital is just too much to even think that most individuals would qualify. It is what some social scientists here would call structural discrimiination. However, the messed up thing is that people in some of these developing countries are very much aware of what motivates the loans without interest. So making the transction from the lender's persepective to the borrower's perspective as formal as possible would gurantee that process will not be destroyed by moral harzard-inclined people -- people who unjustifiably default on their loans.
(Please excuse my long (comment)
George N Mtonga
Analyst
Goldman Sachs
College Kiva
I am so happy that you posted this, Adam! I am actually working on starting a college network for Kiva right now! The overall goal is to increase student awareness and involvement in microlending.
Currently, I am working with Kiva to develop the web infrastructure and we will be launching the program in the Fall. If you want to know more, I will be holding two conference calls this week to talk about the project and anyone reading this is invited to hop on the call.
They will take place as follows:
Wednesday April 30th @ 10:00 AM PST/ 1 PM EST
Dial-in Number: 1-800-615-2900
Access Code is: 873118
OR
Saturday, May 3rd @ 4:30 PM PST/ 7:30 PM EST
Dial-in Number: 1-800-615-2900
Access Code is: 873118
If you will be able to join me, or if you would like more information about microfinance and how you can become involved, please let me know. You can email me at: morgan.lucas17@gmail.com.
I hope to talk with some of you this week!!!
Morgan Lucas
YP4 Class of 2006