An Experience With Kiva
December 10th, 2009 by cbaxter.I have been using Kiva for the last week and it has been a great experience. I am clearly a bit late to the game signing up, but I had to give it a try. For the few who may not know, Kiva is a micro-lender of sorts that facilitates peer-to-peer lending for emerging market entrepreneurs – coupled with a personal and comprehensive website. I love both the business model (even though it has been under pressure lately) and the mission. I remain convinced that the private sector is the best way to alleviate poverty globally.
So far, I have two micro-loans outstanding (one in Peru and one in Costa Rica) — see below for a screen shot. I’m currently covering Latin America and the Caribbean at my day job, so I have a slight geographic preference for where I am looking for development. One of the entrepreneurs sells popcorn, the other raises cattle. One loan is currently in pay-pack, the other is still fundraising. I’m already excited to get my loans back, so that I can lend them out again…more likely, which is great for Kiva, I will just add more money into the system.
Now, clearly emerging market lending is risky, so how is this actually achievable? My understanding is that Kiva is essentially refinancing the micro-finance lenders, who actually clear and book the loans in advance. So, while my actual dollars may not always go these specific entrepreneurs at funding the close, it is still a wonderful concept that effectively facilitates capital into the private sector.
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