Kiva - Micro Loans

[prawn_86]

I have been using this site for the last couple months. Its a great idea. Basically instead of just handing money to a charity to dispurse as they see fit, you help fund microfinance loans (still administered through a charity).

This means it helps break the 'hand out' mentality, and allows people in less fortunate areas begin to earn money for themselves.

You generally only get your money back on your loan (no interest), but its a good feeling to know you are helping people change their lives for the better

www.kiva.org

 

[gordon2007]

I like the concept of this. However it seems there are too many middle men involved. It states that the money is basically already loaned out and you're just putting money back in the main organisation.

Am I interpreting this correctly?

 

[prawn_86]

Am I interpreting this correctly?

Yeh. So the person goes to the charity for the loan, gets approved etc then the charity gives them the money. Your payment then goes to the charity to backfill the loan so to speak. So the quicker the loans get backfilled then the charity can loan more.

I know what you mean about middle-men, but its the best i have found enabling me to loan directly to people/causes im interested in. most other microfinance charities just ask for a donantion in general, not for a specific loan/project

 

[gordon2007]

I wonder how many people here in oz could use the same type of loans. How many people have a great idea, but for whatever reason they can't get a loan for $5000 to make it happen.

 

[So_Cynical]

I wonder how many people here in oz could use the same type of loans. How many people have a great idea, but for whatever reason they can't get a loan for $5000 to make it happen.

I'm struggling to think of any great missed idea where 5K (in Aust) could make all the difference. :dunno:

 

[poverty]

Ship me 5K and i'll think of one

 

[prawn_86]

I;ve now made 10 loans through Kiva and the original ones have started to be repaid. I just re-invest the payments back into more loans.

Although you are just backfilling loans already made by the charities i like the fact that i can choose which type of person/enterprise to sponsor. IE - i will only give to people who want the moeny for a business rather than repairs to their home.

 

[NewOrder]

I have been with kiva since Nov 2007, made 38 loans and only had 1 delinquency. I specifically select women who are supporting their families. To me it is an easy way to contribute and be a global citizen.

About a year ago they changed the system so you could donate the money back out as soon as you had accumulated enough back into your portfolio, great idea as it means new loans turn over faster.

 

[Glen48]

I read in India farmers wanted $100 to buy seeds but had to pay an application fee for a loan because they didn't have the application money they were considered high risk so had to pay the high interest rate so many gave up and suicided.
Here in the Philippine the average wage is $5 a day or about 1,200 PA which means they can't get ahead and the rich get richer.

Pawn shops charge 5% a month.

Buffet et al would be better donating money to these people rather than handing over money were they have no control. of the funds direction
Saw were Gates, Buffet flew in to China on their private jet , police escort, guided by minders so saw nothing of the real world.

 

[prawn_86]

I have been with kiva since Nov 2007, made 38 loans and only had 1 delinquency. I specifically select women who are supporting their families. To me it is an easy way to contribute and be a global citizen.

I look for people who are looking to invest or re-invest into their business and i only suppost the charities who have positive profitability/ROA.

I try and spread the funds around a bit, no particular areas i continents i focus on.

 

[prawn_86]

So i have now made 22 loans at $25 a piece. This means so far i have loaned $550.

I looked back and my initial deposits were only $175, so all the remaining loans have been from amounts being repaid. So far i have not had anyone default on their loan which is pretty amazing (only loss so far has been 5c due to currency).

So for $175 i have been able to help out 22 people who are trying to improve their life through business

Buy some Kiva credit as an xmas gift for that person who has everything

 

[prawn_86]

Just had enough in my Kiva account to make another 3 loans, taking my loans to a total of 25. 13 fully repaid with the rest paying back as we speak

This means so far i have got $625 'value' worth of loans for the initial $175 i put into the Kiva account. By focusing on charities with a positive ROA it means i am less likely to have any delinquencies

 

[suhm]

I support your efforts with Kiva as well its nice to read the stories of the people getting the loans. There is an australian version as well and if you donate the money you are lending up front it is tax deductible as well.

goodreturn.org it isn't as old as kiva and if you want to reinvest your loans i think kiva is better.

 

[NewOrder]

prawn_86 do you have a record of your initial loan payments or is there something on Kiva that tells you? I have made 38 loans so far but no idea how much I have put in. Can I work it out from the details below?
I always donate a % to Kiva as well so that would make it harder to work out.

Total Amount Lent $950.00
Total Amount Repaid $841.52
Total Amount Lost $16.54
Total Amount Refunded and Expired $0.00
Outstanding Portfolio $91.94
Delinquency Rate 0.00%
Default Rate 2.13%
Currency Exchange Loss Rate 0.00%
*Updated as of Feb 09, 2012 12:02 am
My Loans by Status

 

[prawn_86]

prawn_86 do you have a record of your initial loan payments or is there something on Kiva that tells you? I have made 38 loans so far but no idea how much I have put in. Can I work it out from the details below?
I always donate a % to Kiva as well so that would make it harder to work out.

If you go to 'My Portfolio > Transactions' there is a dropdown box in which you can select 'deposits' this will tell you how much you have deposited in total.

Turns out its actually $225 i have put in in total, not $175.

 

[NewOrder]

Cheers, very interesting. I have deposited $208.75 in total.

 

[prawn_86]

Cheers, very interesting. I have deposited $208.75 in total.

Almost 4:1, talk about value for money

 

[prawn_86]

Well my Kiva strategy is continuing to work for me. Every one of my loans i have given has been repaid on time and in full, meaning i was just able to make another 8 loans today.

Out of $225 i originally deposited i have now lent $825 dollars in total across 33 different loans.

I only give loans to people who repay monthly, nothing over 12 months so i can get the funds back quicker, and the lending partner must have positive yeild and ROI so i know that they have a sustainable business model.

I find it strange there isn't more interest here on ASF, but if anyone would like to try it you can get a free $25 loan by clicking here...

 

[suhm]

I support kiva and good return (like Kiva but australian so if you donate your loan it is tax deductible but not as enjoyable to use as kiva).

I tried sending out invites to friends and talked to a couple of them about kiva but no one took up the free trial loans. I would have thought it was a good deal, its essentialy $25 USD for free if you dont want to reinvest the money and good for the contributor because it gets more people using kiva.

Vast amount of apathy though.

 

[CanOz]

Well my Kiva strategy is continuing to work for me. Every one of my loans i have given has been repaid on time and in full, meaning i was just able to make another 8 loans today.

Out of $225 i originally deposited i have now lent $825 dollars in total across 33 different loans.

I only give loans to people who repay monthly, nothing over 12 months so i can get the funds back quicker, and the lending partner must have positive yeild and ROI so i know that they have a sustainable business model.

I find it strange there isn't more interest here on ASF, but if anyone would like to try it you can get a free $25 loan by clicking here...

Prawn, this is a great idea...I'll be considering this for sure.


Thanks,


CanOz