in Personal

Lend to Kiva

20070313Kiva.pngThis post is kind of personal.

When I get home and check the snail mail mailbox I usually find request for donations coming from different organizations. Sometimes I decided to donate some money to some of these organizations, sometimes I simply forgot about them.

When I donate I always ask to myself where this money will really go. Most of the times you have no chance to know how your money was used and I sometimes feel suspicious about that.

November last year I joined Kiva and that was a revolution. Sort of.

Let’s have a look at what Kiva does:

Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you’ve sponsored. As loans are repaid, you get your loan money back.

  • They do this implementing a very simple process called “The Loan Cycle”:
  • Lenders pick a business and make a loan using their credit card.
  • Kiva transfers funds to local partners. Partners disburses loans to each business.
  • Over time, partners collects repayments and provides business updates to
  • Funds are returned to lender. Kiva lender may withdraw or re-lend.

I found this really great for a number of reasons:

  • You have the real touch. You can look at your funded business and how they progress in time.
  • You can reuse the money you have given. This is one of the most important things to me. With same money you end up helping several different business in the world.
  • The idea that many lenders help a single business is great.
  • I know where my money is going and I may choose which projects to finance.

The minimum amount of money you can lend is 25 USD that is a small omount in rich countries. Pretty much everybody can afford that.

Why do I blog this? I have always loved the concept of Micro Financing. Kiva is one good approach to the subject when you find yourself sitting in the office.

P.S. I hope that some of you will join Kiva and will lend some money to some business in need.

P.P.S. If you want to look at my lender page, just click here.

  1. Hello,

    This is really a very interesting concept and profitable venture. With this system you are not only helping the small businessman to start their business but also putting your money in a best business venture. Giving loan to Kiva your dual purpose is being solved, you are contributing towards nobel cause and your investing also. Such schemes can really help boost the small business man in developing countries and making them financially independent.

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  • - November 22, 2007

    mi aveva segnalato tempo fa Zopa, una specie di “banca 2.0” con un sistema di prestiti diretti tra utente e utente. Ha approfondito l’argomento Alessandro Gilioli su un numero de L’espresso qualche tempo fa. Ora trovo su .Dust di Alessandro segnalazione di Kiva, che mi sembra ancora meglio. Un sistema di micro-credito diretto da utente a micro-business. Quasi da Banca Etica. Interessantissimo, da approfondire. Devo segnalarlo al mio amico di