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Microfinance meets Prosper.com = A fun way to give! Kiva.org

KIVA.ORG is a great way to give. They have combined the elements of prosper.com with microfinance.

I am so excited about finding this website. After I decided to write a post about it, I did a quick search in AR to see if anyone else was posting about it. There was one guy. ART BLANCHET. He has written multiple posts about Kiva.org. Check it out. Thank you, Art, for writing your posts.

Here is how it works, in a nutshell: You pick a business you want to make an interest free loan to and, using any credit card via paypal, loan as little as $25 to that business. That business is "mentored" by one of many microfinance organizations who helps them manage their business and repay the loan. According to Yahoo!News, they have a 99% repayment rate. (Just so you know, that is UNBELIEVABLE!) They pay you back usually in around 6 months to a year. At that point, you can re-lend the money, or withdraw it.

When I first saw that you had to use paypal, I thought Wow! That has to get expensive. Turns out, paypal likes what the folks at Kiva.org are doing and PAYPAL DOESN'T CHARGE KIVA.ORG ANYTHING TO USE THEIR SERVICE! I was blown away. So, I dug a little to see who was partnering with Kiva.org. Here is what I found.

Something else, isn't it? I thought so, too. I first read about microfinance organizations several months ago in Fast Company. They were honoring companies who had found a way to profit and help the community. One of them was a microfinance organization. Then, shortly after, while at a Dodger game with JT, he mentioned wanting to get involved in microfinance. I didn't really dig too much after that night, until I read an article on Kiva.org and decided to explore a bit.

This kind of thinking, using the internet for good, connecting people in this way,

IS GOING TO CHANGE THE WORLD.

Kudos to Kiva.

Posted by John Evarts on 09/13/2007 01:41 PM

Comments (15)

kiva, kivaorg, microfinance, lending, giving, charity, loan

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15 Comments on Microfinance meets Prosper.com = A fun way to give! Kiva.org

SEP

2007

Thanks to Oprah millions of people know about this site.

Pam, isn't that great? She is on the list of "in the press" on their site.

I have heard it can be a good way to make some money. It still has a risk, and people need to know that too. Still seems to be a good place to place some small amounts of money to test it out.

Dave, I don't think you make any money on kiva.org. You do at prosper, but I think Kiva is all interest free loans. That is what makes it great.

Ok, so I put my money where my mouth is and loaned to two people.

A quick glance at the site and I see the majority of businesses are in Nigeria and other African countries. Isn't this a huge red flag? Isn't Nigeria scam capital of the world?

Dennis, look deeper.

Maybe I am using the site incorrectly. but the only place I see in need of loans are in Africa.

Dennis, although that is where many of the scams come from, there is real need there. The "supporting partners" of this site are good enough for me. If I get scammed out of $50, so be it. I sometimes give to the homeless with their signs, too.