Kiva.org

So I think it was last Christmas that Peter and I decided we wanted to give a few presents with a purpose! First we started with my dad..I mean what do you give a man who has everything?? We sat down one night and thought well...he is a business man...seeing as he is a stockbroker he is interested in investing and seeing a return...so why not get him a Gift Certificate to KIVA! So we did...and he invested the money into an entrepreneur who then pays him back in a matter of months so that he can reinvest the money into another entrepreneur. Cool concept huh?? soo cool you should probably check it out for yourself and just click on the word KIVA and it will take you directly to the website.

So a bit about Kiva.

Kiva's mission is to connect people, through lending, for the sake of alleviating poverty.

Kiva empowers individuals to lend to an entrepreneur across the globe. By combining microfinance with the internet, Kiva is creating a global community of people connected through lending.

1) Kiva Partners with a Microfinance Institution

Kiva partners with existing microfinance institutions around the world (we call them Field Partners). These organizations that have expertise in microfinance and a mission to alleviate poverty facilitate Kiva loans on the ground. Our Field Partners know their local area and clients and do all the leg work required to get Kiva loans to the entrepreneurs posted on Kiva.org.


2) Field Partners Disburse Loans and Upload Stories

Field Partners disburse loans as soon as they are needed. They can do this up to 30 days before the loan request is posted on Kiva's website or 30 days after (most choose to disburse funds before the loan request is posted). The Field Partner collects entrepreneur stories, pictures and loan details and uploads them to Kiva. Volunteer editors and translators review the loan requests and publish them to Kiva.org. Many Field Partners require mandatory savings as part of the loan cycle in order to ensure that borrowers represent a good lending risk and can build up cash reserves.


3) Lenders Browse Profiles and Lend

Lenders browse loan requests and select which ones they'd like to fund. Lenders can fund as little as $25 and as much as the entire amount of the loan. To help streamline the loan transaction process, loan requests posted by the Field Partner are rounded up to the nearest $25 increment. Kiva aggregates funds from Kiva lenders and provides them to the Field Partner.


4) Kiva Disburses Lenders' Funds to the Field Partner

The Field Partner uses the funds to replenish the loan they've already made to the entrepreneur. Kiva provides these funds on a schedule that accommodates the Field Partners' banking procedures.


5) Entrepreneurs Repay Their Loans

The Field Partner collects repayments from Kiva entrepreneurs as well as any interest due and lets Kiva know if a repayment was not made as scheduled. Interest rates are set by the Field Partner, and that interest is used to cover the Field Partner's operating costs. Kiva doesn't charge interest to its Field Partners and does not provide interest to lenders. Kiva also gives Field Partners the option to cover currency losses. Learn more
To minimize the expense and maximize the efficiency of money transfers, Kiva works on a net billing system. This means that, for any given month, we subtract the amount of Field Partner repayments from the amount of loans made by Kiva lenders. Kiva only asks our Field Partners to send payments for the difference and they have 30 days to send payment.


6) Kiva Provides Repayments to Lenders

If there is already money in the Field Partner's account, or once their payment is received, Kiva uses these funds to credit the appropriate lenders with their loan repayments. Lenders can re-lend their funds to another entrepreneur, donate their funds to Kiva (to cover operational expenses), or withdraw their funds via PayPal.

CHECK OUT THIS VIDEO TO SEE HOW IT ALL WORKS!!

A Fistful Of Dollars: The Story of a Kiva.org Loan from Kieran Ball on Vimeo.