Our First Kiva Loan!

[dalthauser]

CHAMROEUN KOSAL - CAMBODIA

( and here's our Lender Page at Kiva....)

I feel like such a Philanthropist..... :-)

Comments

[kitschyhippie.livejournal.com]

How do these work? I've heard of them, but not really looked into them much.

[eats-veggies.livejournal.com]

The website is probably the best place to learn how they work (they have lots of info like that), but I'll try and explain the basics (mind you - my knowledge is limited).

In poor countries there isn't a lot of money to go around, and farmers / small businesses have an almost impossible time getting any kind of a loan. Those that do pay incredible interest rates (like 50% or more).

What kiva does is loans money interest-free to small lending organizations in order for them to loan to this group of people only. The people pay interest on it to the lender, but it's less than what they would be paying through other sources.

Lenders (us) don't make any profit in the form of interest - and can actually lose our investment if the lender or the lendee default (the percentage of default is low - but it does happen). This really is simply charitable giving - except you can give again and again as your investment comes back to you.

How it works is you join the website. You look at the folks who are needing funds. People need sums ranging from $250 to several thousand. If you see someone you'd like to lend to you can choose to lend from $25 all the way up to the entire amount they need. You pay with a credit card or through PayPal. Once they are fully funded - the money is dispursed to them. They are on a payback schedule you can track. When the loan is paid back - you get your investment back in the form of a credit. You can cash it in, donate it to Kiva, or re-invest in someone else.

I think it's awesome :)

[kitschyhippie.livejournal.com]

Oh, wow!

That is really awesome. :)

And you're awesome for being involved.