Kiva

Kiva is a non-profit organization that aims to alleviate poverty by providing micro-loans to people who have limited access to traditional banking services. Founded in 2005, Kiva has helped over 3 million borrowers in more than 80 countries to start or grow their businesses, pay for education or health care, or improve their homes.

Kiva’s approach is based on the principle of microfinance, which is the provision of small loans, usually less than $1000, to low-income individuals or groups who lack collateral or credit history. Microfinance has proven to be a effective tool for poverty reduction as it enables people to invest in their own potential and generate income, thus breaking the cycle of dependency and deprivation.

Unlike other microfinance institutions, Kiva does not directly lend money to borrowers. Instead, it acts as a facilitator between lenders and borrowers through its online platform, which connects people from all over the world who are willing to invest in the future of others. Kiva partners with local organizations, such as microfinance institutions, non-governmental organizations, and schools, which screen and select the borrowers based on their needs, abilities, and ambitions.

Once a borrower is approved, his or her profile is posted on Kiva’s website, along with a description of the purpose and amount of the loan, the repayment terms, and the borrower’s photo and story. Lenders can browse through the profiles and choose who to lend to, based on their interests, preferences, and level of risk. Lenders can contribute as little as $25 or as much as the full amount of the loan, and they can see the impact of their investment on the borrower’s life through updates and photos.

Kiva operates on a system of zero-interest loans, which means that lenders do not earn any financial return on their investment, but they do get the satisfaction of knowing that they are making a positive difference in someone’s life. Kiva charges a small fee to cover its operational costs, but it does not profit from the loans.

Kiva’s model has several advantages over traditional forms of aid and charity. First, it empowers the borrowers to take control of their own lives and destinies, by giving them the means and the motivation to improve their living standards and achieve their goals. Second, it creates a relationship of trust and accountability between the lenders and the borrowers, as both parties have a stake in the success of the loan. Third, it promotes the exchange of ideas, cultures, and values between people from different backgrounds and contexts, which enhances mutual understanding and respect.

Kiva’s impact can be seen in the stories of its borrowers, who have overcome poverty, discrimination, and adversity with resilience, creativity, and hard work. For example, Zolboo, a mother of four from Mongolia, used her loan to buy more livestock and increase her income from selling milk and wool. With the profits, she was able to pay for her children’s school fees and invest in new equipment for her business. Zolboo said that the loan gave her “an opportunity to improve the well-being of my family, and I am grateful for that”.

Another example is Jemimah, a farmer from Kenya, who used her loan to purchase high-quality seeds and fertilizers for her maize farm. She was able to increase her yield and sell her crops at a higher price, which enabled her to save money and send her children to college. Jemimah said that the loan “gave me the chance to expand my business and change my life”.

Kiva’s impact can also be seen in the numbers. According to Kiva’s latest statistics, the organization has facilitated over $1.5 billion in loans, with a repayment rate of 96.8%, which means that the vast majority of borrowers have been able to honor their commitments and pay back the loans on time. Moreover, 87% of the borrowers are women, who often face greater challenges in accessing finance and education than men.

Kiva’s mission is far from complete, as poverty continues to be a major global challenge, affecting billions of people. However, Kiva’s innovative and inclusive approach to microfinance has shown that change is possible, one loan at a time. By investing in Kiva, you can provide a lifeline to those who need it the most, and transform their lives and communities for the better.