Kiva.org is a well-established non-profit organization that provides funding for groups, individuals, and entrepreneurs in developing countries “for the sake of alleviating poverty”. Basically, you are lending money to that person, and Kiva makes sure that they return it. Kiva works with other non-profit organizations in that particular country that ensures the entrepreneur doesn’t default on monthly payment.
How it works:
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1) Lenders like you browse profiles of entrepreneurs in need, and choose someone to lend to. When they lend, using PayPal or their credit cards, Kiva collects the funds and then passes them along to one of our micro-finance partners worldwide.
2) Kiva’s micro-finance partners distribute the loan funds to the selected entrepreneur. Often, our partners also provide training and other assistance to maximize the entrepreneur’s chances of success.
3) Over time, the entrepreneur repays their loan. Repayment and other updates are posted on Kiva and emailed to lenders who wish to receive them.
4) When lenders get their money back, they can re-lend to someone else in need, donate their funds to Kiva (to cover operational expenses), or withdraw their funds.
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When I first joined and started lending, there were hundreds of folks seeking funding. The bad news is that since Kiva has changed its policies from holding our repayments to giving lenders their money back immediately when repaid by the entrepreneurs, there are only 4-5 folks seeking funding at any one time now. Why? Because everyone receive their repaid loans and immediately fund others! That is the good news!
They are working as I write to bringing in a whole gaggle of entrepreneurs who need cash to expand their small businesses.
Kiva is a finalist in the American Express Members’ Project, a competition for a $1.5 million prize. This money will help Kiva reach 60,000 more developing world entrepreneurs. It takes one minute and no money to vote for Kiva’s project “Loans that Change Lives.”
Just this week, 2,771 new lenders joined; $1,053,250.00 lent; 564 loans repaid; 12,687 lenders made a loan;709 gift certificates purchased. No wonder they have a hard time getting more entrepreneurs. But remember, if you are an American Express Card holder, then vote for Kiva so they can reach more of these developing countries entrepreneurs on board so you and I can loan them cash to build their dreams!
Check it out at http://www.kiva.org/lender/faithsloan
God Bless
Faith