Kiva - Loaning Money To The Working Poor
Posted on August 9, 2007 - Filed Under Life, Links, News
I came across the Kiva.org site last weekend while researching “microinvesting” and wanted to share how easy it is to help small business owners in developing countries. I’m terrible at describing things, so I’ll copy and paste from the Kiva site to give you an idea of what it is, and how it works.
Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you’ve sponsored. As loans are repaid, you get your loan money back.
Kiva has a list of business owners from around the world that need help, you browse through the list and choose a business that you want to help, and donate as little as $25 bucks to the loan. Kiva doesn’t take any money off the top, but they do ask that you donate money to help them keep things running. My $25 loan came to $27.50 after donating $2.50 to help keep the Kiva organization running. Kiva is a 501(c)(3) nonprofit.
In my case, I decided to help with a $1000 loan by contributing $25 to a woman named Fotima Yulchieva living in Khujand, Tajikistan. Fotima, a widow, runs a small business selling school/office supplies with her three children and works a second job to help support her family. Eventually, she will start paying the loan back and I will get my $25 so I can then invest in another business. If she can’t pay it back, I’m out the $25. That’s a risk I am willing to take if it in any way contributes to making someone’s life better in a developing country.
I have a lender page setup here that allows you to see who I am lending to, and the status of their loan.
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