A few months ago I was introduced to Kiva. Kiva does a great job of summarizing what it does so I won’t try to paraphrase it: “We are a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world. ”
Kiva does a good job of explaining what it does and how it works (http://www.kiva.org/about/how), so I wont rehash it here.
Why I lend on Kiva:
- I like that I know where my capital goes, down to the person or group
- The money I lend provides capital to people who typically would not have access to credit
- I help supports entrepreneurs achieve their goals
- Compared to one-time charity donations, your funds can be continuously re-lent
- It’s easy and simple to execute (via Paypal)
- It doesn’t cost you to lend (but you can also donate to Kiva if you’d like)
- I can track things very closely
- It’s fun!
My Kiva strategy
- staged repayment terms to achieve the rollover profile I wanted
- a diversified mix of countries
- a mix of industries
- good quality field partners
My current Kiva loan portfolio
- Loans made: 98
- Loans outstanding: 91
- Number of countries: 36
- Largest country exposure: Peru and the Philippines each have 8 loans outstanding.
- Average country exposure: 2.5 loans
- Loans made to women: 69%