How do Kiva Loans work?
(14 votes, average: 3.93 out of 5)
Kiva lets you lend to a specific entrepreneur in the developing world – empowering them to lift themselves out of poverty. You can loan as little as USD 25 and get paid the money back on succeed of the entrepreneurs business. I loaned some money myself to Eloy, a guy from Bolivia who does work in metal, such as doors and windows. He needed a loan of $ 300 for buying materials for his work. So I decided to contribute 25 $ plus an additional 2,50 $ (for covering overhead costs) to help him run his business. I will get paid back the 25 $ in monthly rates beginning with February 15th 2009, so the money is not “gone” and I can use the money afterwards to loan it to another person that needs a loan – or withdraw it from Kiva, if I need the money myself again (which is very unlikely in this case;-).
Because the system is so innovative and yet different from normal bank loans, I found this film that explains the Story of Kiva.org Loan.
A fistful of dollars: The story of a kiva.org loan
Visit Kiva.org
Meredith
I love the idea of Kiva, great documentary, too short.
February 14th, 2009 at 8:05 pmFinius Figglebottom
Pretty much just a long commercial for Kiva not really worth watching if you want substance.
March 27th, 2010 at 12:20 amWarren
A nice idea and what a great way to help change some peoples lives for the better.
July 6th, 2010 at 3:13 amben
great video – great idea – go kiva!
July 16th, 2010 at 9:11 amTobotron
This is bank loaning without the means to self create money out of nothing, the way it should be! In a very small way its a wealth re-distributer, ild love to set up a business like this myself!
August 15th, 2010 at 5:41 amMildred Lynn
Joined Kiva today and made 4 loans of $25
Excellent video – I’ll be sure to pass it along to others. Lov’n the Kiva microfinancing model – it just makes so much sense to me!
April 3rd, 2011 at 6:00 pmNed
So there isn’t a profit in this??
June 9th, 2011 at 7:57 am