Kiva--Loans that Change Lives
By Hailee Bland-Walsh

Jan 22 | archive | subscribe

Kiva is a non-profit that lets you lend to a specific entrepreneur in the developing world.  The idea is that the loan empowers the borrower to lift themselves out of poverty.  Kiva lets you connect with and loan money to unique small businesses in the developing world.  Throughout the course of the loan, you can receive email journal updates from the business you've sponsored.  As loans are repaid, you get your money back.

Kiva runs on a system called microfinance.  "Microfinance is the supply of loans, savings, and other basic financial services to the poor." CGAP This system is highly effective for lifting those without a lot of money out of poverty.  The small and manageable loan is much easier for the borrower to repay and provides the platform for the beginning of small business.

The process of making a loan is very simple.  Kiva features qualified entrepreneurs on the website and details their business and financial needs. In addition, the website features a bit of personal information and a picture.  Loans can be made at any personally significant amount, starting at as little as $25.  Periodically you will hear back from your sponsor.  Partner representatives (often loan officers) write directly to the website to keep you informed on the progress of your business.  When your Kiva loan is repaid, you can choose to withdraw your funds or re-loan to a new business.    

The success of this organization has been remarkable.  Hundreds of people from Viet Nam to Uganda have had their lives changed by this opportunity.  And an opportunity is what this is.  This is no "hand out."  Borrowers of these loans have a plan for a business and make the most with what they are given.  

Kiva matches the best of both worlds; sound business practice with the hopes and dreams of entrepreneurs in the poorest parts of the world.  Imagine from where you sit, you can change the course of one person's life--$25 at a time. kiva.org