Kiva - Micro Loans

[CanOz]

I just made my first loan! a free $25 loan! This is a really cool idea....

CanOz

 

[prawn_86]

I just made my first loan! a free $25 loan! This is a really cool idea....

CanOz

Woo hoo!

It can get quite addictive scrolling through all the potential borrowers and finding loans that suit you. The other good thing is seeing you balance grow again as they repay the loan and you can then relend it. (As yours was a free loan i'm not sure if you will be able to relend or not)

 

[prawn_86]

Another 3 loans since all my others have been repaying on time. 36 loans made and not one default yet

 

[dead trader]

I use Kiva too!

I find it extremely rewarding to know that my "small money" can make such a big difference to someone else's life.

Let's keep lending!

 

[prawn_86]

Over $100 had been repaid so just made another 4 loans. Still no losses as yet...

 

[sydboy007]

Another 3 loans since all my others have been repaying on time. 36 loans made and not one default yet

I believe there is a lot of peer pressure within the community to ensure loans are repayed.

Microfinancing is a great way to help people build up capital and benefit not only themselves and direct family, but it helps to develop what most of us in Australia would think of as a normal economy.

Most of the time free market works, just sometimes it needs to be nudged in the right direction, or as with Kiva, a helping hand to start with.

I quite often give to the Smith Family or Salvos to help parents with school expenses. Education is the best way out of poverty. I'm a test case of this

Thinking will top up the $25 with $25 of my own money and see what business I can help to grow.

 

[Some Dude]

I have money in kiva also and despite a couple of issues that I have around packaged stories and pre-embursment, I think it is a great idea.

 

[CanOz]

I have a loan outstanding to an Iraqi lady...she has a sewing business. I'm doing my part to repair relations...

Got a payment back today!

CanOz

 

[prawn_86]

I have money in kiva also and despite a couple of issues that I have around packaged stories and pre-embursment, I think it is a great idea.

Yeh i would prefer to fund the borrower direct and before they get the money (not after) but Kiva is the closest thing i have found to being able to contribue to micro-financing

 

[Some Dude]

Yeh i would prefer to fund the borrower direct and before they get the money (not after) but Kiva is the closest thing i have found to being able to contribue to micro-financing

Agreed. My co-worker comes from Bangladesh and he has been telling me his opinion about the good and bad regarding micro-credit in his country. Bottom line from his perspective was that despite the imperfections, of which he recounted many, the net benefit was worth it.

 

[So_Cynical]

So these are interest free loans?

 

[prawn_86]

So these are interest free loans?

Bascially what you are doing is back filling loans already made by lenders. So the lenders charge interest but you dont see any of that. Your donations essentially allow the lenders to lend more and help more people out (in theory).

The lenders then use the interest they earn to cover admin, grow their loan book etc i assume

 

[Julia]

Bascially what you are doing is back filling loans already made by lenders. So the lenders charge interest but you dont see any of that. Your donations essentially allow the lenders to lend more and help more people out (in theory).

The lenders then use the interest they earn to cover admin, grow their loan book etc i assume

So what's in it for you?

 

[sptrawler]

Can I get a loan?

 

[gordon2007]

Satisfaction.

So what's in it for you?

 

[prawn_86]

So what's in it for you?

Satisfaction.

As Gordon says. The fact i can give to a charity, get my money back and re-lend it and in the process hopefully help to break the handout mentality of a lot of countries (giving and receiving). Usually when you give to a charity they just take it and you have no idea where the money is going.

I have deposited $225 in total and have now made $1000 worth of loans, thats value for money if you ask me.

 

[Julia]

Thanks for explaining how it works. So you limit your loans to small amounts so if the money isn't paid back you're not down thousands?
Is it complicated to get involved?

 

[prawn_86]

Thanks for explaining how it works. So you limit your loans to small amounts so if the money isn't paid back you're not down thousands?
Is it complicated to get involved?

Yes bascially the person is asking for an amount (say 1k) and you can lend in blocks of $25, and other people lend too until the loan is (hopefully) filled.

Click on this link and you will get a free $25 to get started