…and feed him for a day, teach him to fish - you feed him for life.
That’s part of the philosophy behind Kiva.org - a site which helps entrepreneurs in 3rd world by helping them secure microloans to move their businesses forward.
“Microfinance is the supply of loans, savings, and other basic financial services to the poor. Why are they small? Someone who doesn’t have a lot of money isn’t likely to want to take out a $5,000 loan, or be able to open a savings account with an opening balance of $1,000. Hence – “micro” - via CGAP
Kiva partners with existing microfinance institutions who are experts in choosing qualified borrowers. Profiles and the needs of all borrowers are uploaded and you get to pick who you sponsor.
With endless good press, and solid partners behind it, it’s definitely a winning concept.
Since launching one year ago, Kiva.org has:
- Become the most trafficked website in microfinance with over 250,000 visitors
- Raised $430,000 in loans in $25 increments from more than 5,400 users
- Provided capital for 750 micro-enterprises in 12 developing countries
- Grew its partner network to 14 partners in Africa, Asia, Eastern Europe, the Middle east and Latin America
- Partnered with PayPal, an eBay company, to provide free payment processing on an ongoing basis-PayPal’s first such partnership
- Received invitations to speak at the Clinton Global Initiative in New York and Global Microcredit Summit in Canada
- Achieved a 100% repayment rate on 28 completed loans thus far. Kiva expects the long term repayment rate to match the 97% microfinance industry average.
- Built a strong grassroots following in the blogosphere (+1,300 blogs including Daily Kos and Huffington Post), on campuses and on MySpace.
If you would like to know more ways to help the poor using the net - check out some older posts here and here.
Kiva - Loans that change lives. I’m in - why not you?
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