Kiva (organization)

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Kiva logo and slogan

Kiva is a non-profit organization with a mission to connect people through loans for the sake of alleviating global poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help fund small businesses run by low-income entrepreneurs around the world.

Loans made on Kiva.org provide 0% interest to lenders, but borrowers are charged 16% interest to cover the cost of administration.^[1] Kiva borrowers have a historical repayment rate of 100%^[2]. Kiva is working with regulators to allow microfinance institutions to offer variable interest rates to lenders.

1 How it works
2 Early progress
3 Organization and team
4 References
5 See also
6 External links

[edit] How it works

Kiva partners around the world

Kiva enables microfinance institutions around the world to post profiles of qualified local entrepreneurs online. Lenders consist of any individual with a credit card. A PayPal account is only required to withdraw funds.^[3]. Lenders browse and choose an entrepreneur they wish to fund. Kiva aggregates loan capital from individual lenders and transfers it to microfinance partners, called "Field Partners", to disburse and administer. As loan repayments are made by the entrepreneur, the Field Partners remits funds back to Kiva. Once the loan is fully repaid, Kiva lenders can withdraw their principal or re-loan it to another entrepreneur.

PayPal does not collect a fee on Kiva transactions^[4]. Kiva distributes 100% of the loan to the entrepreneur. Lenders do not receive any interest or other profit. The Field Partner who administers the loan collects interest from the entrepreneur.

[edit] Early progress

Named as one of the top ideas in 2006 by the New York Times Magazine, Kiva (www.kiva.org) is the world’s first person-to-person lending marketplace for the poor. Kiva's goal is to reduce global poverty by letting consumers lend to and connect with a specific developing world entrepreneur online. Affordable capital helps low income entrepreneurs start or expand small businesses, creating a path towards economic self sufficiency.

In a little over a year, Kiva has rapidly grown to become the most trafficked site in microfinance with +35,000 Internet lenders generating +$3 million in loans to thousands of entrepreneurs in +25 developing countries – all with a +99% on time repayment rate thus far. Kiva is staffed and governed by experienced consumer Internet and microfinance leaders.

In addition, a number of major internet partners are supporting Kiva, including PayPal, YouTube, Google, MySpace and Microsoft. Kiva has also received wide acclaim from the blogosphere, mainstream media and development experts (featured at the 2006 Clinton Global Initiative and 2006 Global Microcredit Summit). Headquartered in San Francisco, Kiva is a 501(c)3 non-profit internet start-up.

[edit] Organization and team

Based out of Silicon Valley, Kiva is run by a team with experience in microfinance (Uganda, India, Tanzania, etc) and technology (eBay/PayPal, TiVo, Google, MySpace). Kiva is 501c3 non profit and expects to be a self-sustaining operation by end of 2008.

[edit] References

^ http://www.npr.org/templates/story/story.php?storyId=6668527
^ Kiva FAQ: "To date, Kiva.org’s repayment rate is 100%."
^ Kiva FAQ: "You can pay by credit card through PayPal’s website, even if you don’t have a PayPal account. You will, however, need a PayPal account when you withdraw your funds as Kiva.org uses PayPal to handle all financial transactions."
^ Kiva FAQ: "Kiva.org is the first organization PayPal is supporting by providing free payment processing."