8. Kiva’s Model You become the lender of a 0% interest loan Money and stories are exchanged between lender and borrower through Kiva and the Microfinance Institution
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10. The Kiva website lets you shop for loan requests, just like browsing items on eBay or another website
11. Kiva lenders make 0% interest loans which are paid back at the end of the loan cycle. Over 98.6% of loans are paid back.
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15. Kiva’s mission is to connect people through lending to alleviate poverty.
17. 562,273 Kiva lenders have lent over $ 198 million dollars to 515,195 entrepreneurs through 126 Microfinance Partners in 58 countries and the numbers are growing Ukraine Bosnia Moldova Azerbaijan United States Tajikistan Bulgaria Lebanon Afghanistan Iraq Gaza Nepal Haiti Pakistan Mexico Dominican Republic Honduras Senegal Nigeria Vietnam Guatemala Nicaragua Ghana South Sudan Sierra Leone Columbia Cambodia Uganda Indonesia Togo Cote d’Ivoire Cameroon Ecuador Kenya Samoa Tanzania DRC Peru Mozambique Bolivia Paraguay South Africa Chile
18. Kiva’s goal is $1 Billion for 2 million borrowers by 2015
27. Yenku: Sierra Leone Yenku Sesay is a 30 year old Sierra Leonean In 2006 rebel soldiers cut off his hands as punishment for voting When he was 21 years old, Yenku was a double amputee, whose only prospects were begging in the streets of Freetown
28. Yenku Sesay: Survival to Success Yenku was approached by a microfinance institution The microfinance institution encouraged Yenku to take a loan of 300,000 Leones (about $100) to start a small business Yenku sold soap, biscuits and small items for a small profit As Yenku made a profit, he reinvested it into the business Yenku now supports his family of three children, and even pays for his younger brother’s schools fees
Notas del editor
Mark from Cambridge had easy access to capital when he wanted to start facebook.Not just from friends and family. He could walk down the street and request a loan.
Maria from Costa Rica has a business idea too, but she doesn’t have the same luxury as Mark.She lives in a small village two hours away from the closest bank.She doesn’t own a car and the dirt roads leading to her are constantly washed out by heavy rains.It is too hard for Maria to get to the nearest bank. Once more, she doesn’t own any collateral and the bank doesn’t want to take a risk on her.How does Maria get a loan to build her business?http://www.kiva.org/lend/178859
Micro-finance innovates on financial services you and I enjoy everyday, but uses the following innovations to make the accessible to the poor:Small loan amounts payable in small increments over an extended time table.Low interest rates. Or, at least lower than loan sharks.Loan officers travel to the local communities and take risks on lending to risky borrowersCustomized loan packages. Eg. Agricultural loans with longer payment window that match local harvest cycle.Group loans to distribute risk
MuhammadYunus founded modern Microfinance 30 years ago in BangladeshAnd inspired an entire industry
Microfinance institutions typically get the money that they lend, from banks or non-governmental organizations, or both This can be expensive, as it is often borrowed with interestThere may also be difficult application procedures to access debt capital from non-governmental organizationsSome organizations can even find themselves shut out due to the region they operate in, particularly post-conflict regions
You become the lender through Kiva’s lending platform.Kiva partners with Microfinance Institutions who submit entrepreneurs to the website.You lend money through Kiva to the MFI who uses the money to sponsor an entrepreneur.MFI charges interest from the borrower so they can continue to run their businessKiva receives zero interest from the MFIs, only principal repayments.This cheap capital for MFIs helps them grow and sponsor more entrepreneurs than they could traditionally.You receive your dollars back with stories from Kiva lenders on how their business has grown.
Kiva.org, a lending platform. You become the lender.
Kiva.org, a lending platform. You become the lender.
Give a name, story, and aspiration to the face of poverty. Lend out of hope, not give out of shame.
http://www.kiva.org/lend/279700
Many people contribute to one loan from all over the world.
Connect lenders and borrowers through the website, Email,sms, q&a tools, kiva fellows.Constantly seeking new ways to connect people directly
The dream is to flip the lending process on its headThrough Kiva Benard in Kenya can loan to a poor person in the US.
77 year old woman with 76 year old husbandA few years ago her husband decided crawling through the coffee fields on the hill in the rain was too hardCoffee prices were bad and he was getting to old for the workAn entreprising woman, Dona Maria saw a business opportunity in raising pigsPreviously her village had to travel two hours away to pehiybaye to the butcher to buy meatMeat was expensiveWith her 1,200 kiva loan Dona Maria built a pigsty and purchased 4 pigs who birthed 18 piglets in their first yearWith a friend started a butcher shop in townSells her piglets and pork to the butcher who sells to the towns people so they don’t have to travel so farThis is the dream of micro-finance: Create an economy where there once was noneToday Dona Maria’s husband no longer has to pick coffee and she is even able to pay for school for her son off the money she makes with her pigs
Lending groups are great ways to contribute as a team.
Class materials for high schools
Kiva Founder Matt Flannery:“One of the contributions that Kiva has made is to demonstrate that empathy increases generosity. The pictures and stories on the Kiva site increase understanding between various parties that would otherwise operate in completely different universes. When understanding increases, so does empathy. When empathy increases, so does generosity. People are inherently more generous towards people and causes they understand.”