Kiva is a portal that let’s individuals, groups, churches, schools, etc. participate in microlending. Elizabeth Omala pictured here was the recipients of such a loan and her “blog” link(yes, each project has it’s own page)
Microlending involves helping the working poor in a Third World nation get enough capital – say $500 to build and stock a fruit cart – so their family can make a living.
Till now this had to be handled through large third party charities.
Kiva has changed all that and is recommended by everyone from left wing wackos like the Daily Kos to, well, me! And in between there are people like Seth Godin.
How’s it work? Kiva identifies local organizations “on the ground” who identify and vouch for local entrepreneurs so that this does not become some huge “Nigerian” scam. Kiva is the source from which funds are raised. Potential donors can choose from a variety of projects in several continents (original projects were all in Uganda).
Making a loan through Kiva is easy, secure and personal. The lender simply goes to www.kiva.org , registers in a password-protected section, browses the business section to review the enterprises in need of funding, learns how much funding the enterprises are requesting, and then chooses one or more businesses to which to loan. Loans are made via PayPal, a globally recognized online payment service. Lenders can stay abreast of the progress of the businesses to which they have lent via blog-like updates posted on the Kiva site. If lenders wish to correspond with the business owner, they can do so through the Kiva partner representative…
What the Big Media have said about Kiva…
“If you’ve got 25 bucks, a PC and a PayPal account, you’ve now got the wherewithal to be an international financier.” CNN Money
“Smaller investors can also make loans of as little as $25 to specific individual entrepreneurs through a service launched last fall by Kiva.” The Wall Street Journal, 1/5/06
“…revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries ” BBC News
“An inexpensive feel-good investment opportunity…All loaned funds go directly to the applicants, and most loans are repaid in full” Entrepreneur Magazine
“Kiva simply democratizes access to a worldwide microfinance movement that has been empowering the working poor for two decades.” The Village Voice
“Affluent parents eager to give their children object lessons in philanthropy and venture capitalism might want to visit Kiva’s website.” Family Wealth Report
“By creating a p2p website for microlending, the Flannerys bypassed the painstaking process of creating a standard microfinance program.” Alternet
“Kiva.org launched a web site yesterday that enables philanthropists to make “micro loans” to small businesses in the developing world in amounts as small as $25.” Private Equity Week
“…opens the Internet to people looking for a personal, high-engagement means of taking steps to eradicate poverty” ISolutions Magazine
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