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Kiva - loans that change lives
By Steve Hanlon | June 9, 2008
I received an email from an old colleague today about www.kiva.org a website where loans can be made to people in the developing world. Referred to as a “micro-lending”, it’s a truly amazing site and a great alternative to blind giving.
I’ll quote from their “about us” page:
Kiva’s mission is to connect people through lending for the sake of alleviating poverty.
Kiva is the world’s first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world.
The people you see on Kiva’s site are real individuals in need of funding - not marketing material. When you browse entrepreneurs’ profiles on the site, choose someone to lend to, and then make a loan, you are helping a real person make great strides towards economic independence and improve life for themselves, their family, and their community. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates and track repayments. Then, when you get your loan money back, you can relend to someone else in need.
Topics: Politics |
June 10th, 2008 at 2:20 pm
[...] This post from Steve Hanlon about KIVA, an internet-based microlending agency, was so good I thought I’d better just pass it on - the more the merrier. I’ll be looking to get involved. Micro-credit is close to my heart, having seen it work well in Bangladesh through the Grameen Bank, and this looks like a great variation on the theme. [...]
July 23rd, 2008 at 3:22 pm
not sure about this… if payments not met then what?
July 29th, 2008 at 7:56 pm
Dear Westie
An important an sensible question you raise.
As an answer…. It’s about giving loans to people who do not have or cannot in a sane world give ’security’ in the event of loan default e.g. a house to repossess/ a cow to sell/a daughter to put to work breaking bricks instead of going to school.
In fact, there is really good evidence that loan repayment rates are higher amongst the poor, of the type supported by KIVA, especially but not only where the lending mechanism involves some form of ‘circle of trust, whereby groups of (usully) women form a group with loans taken in turn and the subsequent loan (to a greater or lesser degree) dependent on loan repayments by the preceding loan taker. My own expeorence from work in Asia and Africa is not even this indirect security is needed to ensure high percentage repayments.
Thr model’s actually been around for more than 30 years, developed initially by Grameen Bank in Bangladesh (see http://www.GrameenFoundation.org). KIVA is simply taking it into the internet age, and very well too as far I can see