Fig Jam and Lime Cordial

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Have I mentioned recently how much I love Kiva?

I’ve been micro lending through this wonderful organisation for over ten years now (here’s the post I wrote in 2009). Kiva provides small loans to people who might otherwise be unable to access funds. We lenders contribute in lots of US$25 – it’s really very small scale.

I say “lend” because even though we don’t earn any interest, the principal is repaid whenever possible. (Kiva doesn’t charge any interest, but its field partners do to cover operating costs. The amount of interest charged is carefully monitored by Kiva).

Over the last decade, I’ve lost a tiny $1.04 in currency exchange and had no loans default. The average lender ends up with a default rate of just 1.70%. To be honest though, I really don’t care if folks can’t pay it back – the goal has always been to help, not invest. According to the Kiva stats page, I’ve lent to individuals and groups in 16 countries, with a focus on women.

The best thing about the system is that I’ve been able to lend far more than I’ve actually put in, because as the loans are repaid, I’m able to re-lend the same funds. My most recent loan has been to a Cambodian group who wanted to buy a filter to access safe drinking water. They needed just US$225 and I was one of their nine lenders.

Microfinance has had some negative press over the years. In its early days, it was touted as a solution to poverty, but it never ended up achieving those lofty goals. What it does do though, is make a significant difference to individuals who need just a little help to make their lives better.

If you’re interested to find out more, please visit Kiva.org. ♥