• news
  • MONDAY NOVEMBER 26 2007 4:00 AM

Kiva.org - Be a Sugar Daddy to a Third World Friend.

Submitted by SleepyLady

Edited by erin_broadley

Tags: Kiva.org, microfinancing, Bill Clinton



I'm going to take a break from my usual whining and judging others to tell you about this really sweet website that has a unique charitable concept, Kiva.org. I learned about it from our old friend, Bill Clinton.

Kiva.org is based on the concept of micro-financing. (Microfinance is the supply of loans, savings, and other basic financial services to the poor.)

You can loan people money in the developing world to help get their small business growing. These people do not have money, collateral or a credit record making it difficult to open a bank account to secure a loan.

Kiva partners with existing microfinance institutions. In doing so, we gain access to outstanding entrepreneurs from impoverished communities world-wide. Our partners are experts in choosing qualified borrowers. That said, they are usually short on funds. Through Kiva.org, our partners upload their borrower profiles directly to the site so you can lend to them.





The cool part is that you don’t have to be rich to sponsor a business. Most people give just $25 to get the ball rolling. The default rate is not too shabby. With over two-million loans in action, the default rate is only 0.2%. But you can check out the Risk and Due Diligence page to get up to speed on the details. The best part about sacrificing $25 is that you will get your money back from the small-business owner. After that you can pocket your money or get back into the cycle and loan it to someone else.

I've convinced some people in my family that now that we're all adults we should go easy on the Christmas present thing this year and instead give to others. This is about all I can afford to do charity-wise but I think it's the best bang for your buck, especially when you can keep up with your sponsored business and actually see where you've made a difference.

Here is an example from the Journal Section on Kiva.org:

Genara and her husband seem pleased with the new cow they have!!

They say that all their milk production is being sold to PIL Andina ( factory that process dairy products) and the demand for milk is still growing. So, this is a good sign for Genara because it means more income for the family.

The loan they took from Kiva and its lenders is being repaid according to schedule; so far three payments were made and the fourth one is due by November 30th.






  • PERMALINK
  • PRINT
  • Digg This
  • Email To A Friend
 

Previous

PAGE: 

1 | 2

Next

Comments
Crane

Crane

I'm lost
September 2007

NOV 26, 2007 05:03 AM

Sounds pretty interesting, I'm taking a look.
Thanks!

Weapon0

Weapon0

Indianapolis, IN
October 2005

NOV 26, 2007 06:18 AM

That's cool. smile

Minceir

Minceir

I'm lost
September 2011

NOV 26, 2007 07:14 AM

I have seen tv programs about it. and it is a brilliant idea.

AmbientLight

AmbientLight

I'm lost
March 2005

NOV 26, 2007 08:01 AM

Thanks for the info... this is one of the best ideas I've heard of in awhile. Definately gonna check this one out.

NewSpectre

NewSpectre

Baltimore, MD
March 2005

NOV 26, 2007 08:43 AM

Great idea. Definitely something worth pouring some extra cash into.

Snottlebocket

Snottlebocket

Netherlands
March 2004

NOV 26, 2007 08:46 AM

I remember those guys, didn't they get so much response after catching some publicity recently that they ran out of microloan requests to fill?

Salieri

Salieri

Denmark
July 2004

NOV 26, 2007 11:07 AM

I'm in the Facebook group and have lent a micro-loan myself. Its a pretty awesome system, to be honest.

SirLoins

sirloins

Huntington Beach, CA
October 2005

NOV 26, 2007 11:18 AM

I certainly like. Thank you for this.

llouys

llouys

Brazil
August 2003

NOV 26, 2007 11:36 AM


here's an interview with the founders:



it's a great site. i have 3 loans out, and they're half repaid. as soon as they're repaid, i'm going to redirect that money to other projects. and as soon as i can, i'm going to loan more.

kiva rocks.

ericwine

ericwine

Charlotte Hall, MD
January 2007

NOV 26, 2007 01:22 PM

I heard about this, it seems like a great idea.

WhiskeyAGoGo

WhiskeyAGoGo

HOPEFUL

Youngsville, LA

NOV 26, 2007 02:33 PM

That's genius - I love it - Thanks!

DownNeck

DownNeck

Jersey City, NJ
March 2006

NOV 26, 2007 02:38 PM

just put out a couple loans. seems like an awesome site. i think i'm going to aim towards having a specific sum of money in circulation (like $500 or something) that just goes right back out once it's repaid

deathtoemos

deathtoemos

Australia
November 2007

NOV 26, 2007 03:01 PM

That's a really good idea.

emperorreagan

emperorreagan

Baltimore, MD
January 2004

NOV 26, 2007 04:22 PM

I've had some bad luck with loans I made to West Bank businesses 2 years ago on Kiva. Probably not as bad as the luck that the business owners have had, though.

I still think the interest rates are too high, in spite of their explanation. I think that there are probably ways that you could organize things so that cost can be minimized. I also don't like when people start talking about the profits possible in the micro-lending game. In the case of the loans I made to West Bank businesses given what happened there since I made the loans, I wish I had the option to simply forgive them, but Kiva doesn't offer that.

Ultimately, though, I'm all for empowering people to better their own situations.

Emi

Emi

SUICIDEGIRL

USA

NOV 26, 2007 04:30 PM

this is cool and all but there's poverty and shit in people's home countries that no one cares about.

Previous

PAGE: 

1 | 2

Next

featured interviews