Some of you may
know what Kiva is, but for those who don’t I am using this blog posting to
introduce Kiva. Those of you who already know about Kiva will likely be happy having
it introduced to others.
Kiva Microfunds was founded as a 501(c)(3)
nonprofit organization eight years ago, in October 2005. It now provides a way
for people to lend money via the Internet to people in developing countries
through Kiva's 225 field partners. These field partners can be microfinance
institutions, social businesses, schools or non-profit organizations.
Let me share our
experience with Kiva to illustrate. For a while now, June and I have made some
small ($25) loans to people in various parts of the world, joining with others
to provide them with the financial resources to become more economically
independent and to have a better livelihood for themselves and their families.
Our first loan,
made in January 2010, was one of several loans made to a group of 21 women in
Cambodia. Chanthol, president of the group, wanted to borrow money so she could
buy pigs to raise in order to provide for her family better. Kiva members
joined together to provide $3,275 to that group Cambodian women, and in 13
months it was all paid back. Then we used our $25 loan to respond to another
request.
Since that first
loan, we have helped Badar, a man in Afghanistan who needed funds to expand his
general store in Kabul in order to provide better for his family of six
children. Then we helped Shamim, a widow in Pakistan who applied for a Kiva
loan for her son. He drove a rented rickshaw but wanted to buy his own rickshaw
to minimize expenses and increase his income. These three loans were all paid
back on time.
We were not so
fortunate on the next loan. It was to a group of four Afghani women who needed
money to enhance their baking business. But they defaulted on their loan, and
we were repaid only $20.97 of the $25 loan we made to them. There were 34 other
lenders who shared in the small loss on this loan. Overall, though, Kiva’s
repayment rate is 99%.
We have made other loans
to two separate women in Ecuador and also to Ahn, a woman who lives in Ho Chi
Minh City. They were all paid back on time.
One loan that is
now being paid back was made to Wafa, a Palestinian woman who requested a Kiva
loan of $2,000 to help her husband buy a new engine for the taxi he drives. His
income as a taxi driver is all they have for themselves and their five
children. The Kiva.com website shows others, with a picture of many, who are
helping with this loan, and there are 59 in addition to June and me. Besides
the U.S. they are from at least 14 other countries, including Kuwait, Malasia,
Turkey and Vietnam. The others are mostly from European countries.
Last week we
received an email from Kiva saying that they had just reached the one million
lender mark. These lenders have provided nearly $500 million dollars to more
than 1,140,000 people in 72 countries. June and I are happy to be part of this.
It has cost us very little, but by joining with others we have been able to be
a big help to several people around the world.
Perhaps some of you
would like to do this, too. If so, just click on Kiva.org
to get started.
