Kiva is a micro-finance organisation, based in the USA. Their mission is “to connect people through lending for the sake of alleviating poverty”.
In practical terms, that translates to this – through Kiva, you can lend a small amount of money to a small business owner in a third world country. It’s an easy process; you simply go to the Kiva website, find someone you’d like to assist, then transfer the funds via PayPal.
When I say small amount, I mean really tiny – each micro-loan starts from just $25. The money you lend is combined with small loans from other lenders until the total is enough to provide meaningful working capital to the borrower. The money is lent to them interest-free (on your part), but it is a loan, and will, if at all possible, be repaid.
The recipients of these funds, most of whom don’t qualify under the usual banking systems, aren’t asking for charity, they’re seeking assistance to be independent. They often need small amounts, a leg-up to help them get established – $800 to buy materials to sew clothes to sell, or $600 to buy drinks to resell at a small cafe – that order of magnitude.
Can I tell you the most wonderful thing about this system? I began with two small loans of $25 each less than twelve months ago. One loan was repaid in full by May this year, the other one is 88% repaid. I was able to re-loan the money I was repaid, thereby helping another person, and I’ll do the same again when the second loan is repaid. So for my tiny investment of $50, I’ve helped three people earn a living, support their families and build their communities – all with the dignity of knowing that they weren’t dependent on a handout. It’s very rewarding, and it really is a case of helping someone to help themselves.
If you’re interested in knowing more, visit the Kiva website : www.kiva.org.
Note: 98.35% of Kiva loans are repaid, but there is no guarantee you’ll get your money back, so it’s important to lend with that in mind. Having said that, I have friends who have re-loaned the same money several times over now, having been repaid in full each time!
Fig Jam and Lime Cordial 
Well that is my Christmas presents taken care of.
Everyone will be lending out money in their name paid for by me. We always have difficulties at Christmas, we all have too much already. In the past we have pooled our money and purchased chickens, cows and wells and donated to disaster relief. Now we can make a great investment, in people, their dreams and futures.
cheers moo.
Thanks Moo. The great thing is, when and if the loans are repaid, your friends will be able to re-lend that money to someone else. So your one gift to them equates to a helping hand to not one person, but in theory to a constant stream of small business entrepreneurs.
Cheers, Celia
That’s awesome. They don’t have things like this over in Sierra Leone :(
Actually, smartie, they do. :)
http://www.kiva.org/about/aboutPartner?id=57
Kiva is great. I love looking at all of the actual people you can help out. It’s not like giving to a large charity – you know that you’re helping Mr. So-and-so with a real business. Very cool stuff!