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!
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