Kiva Loans

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Deleted member 26715

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After a mention in the Mundane thread by @Speicher I looked into Kiva Loans it's a way of giving directly to those in need, they ask to borrow money for a specific purpose. Then hopefully over a period of time they pay the money back which then allows you to loan it out again. I've dipped my toe in with 2x $25 loans to 2 people in Kenya, 1 wanting to borrow the money to buy livestock & the other to buy better quality grain.

I will be honest & I do not normally give to charity as I am always concerned how much of the money gets to where it is really needed & how much is syphoned off to support the organisation raising/organising the charity. But with Kiva 100% of the money you lend goes to the person, Kiva request you made a donation to them, but this is optional, I did on this occasion but not sure I will on each occasion in the future.

There is a Cycle Chat group https://www.kiva.org/team/cycle_chat between the members they have loaned nearly $10,000 since it was formed, it would be great for others to consider joining.
 
annedonnelly

annedonnelly

Girl from the North Country
Location
Blyth, Northumberland
I do something similar through Lendwithcare When I started with them they were endorsed by the Co-op so I figured that was a good recommendation. I make a loan every month - recently it's mainly reinvesting the repayments. In the years I've been doing it I think only one person has defaulted on their loan.
 
Sharky

Sharky

Guru
Location
Kent
There is a little bit of smoke and mirrors going on. I worked for CAF and the it systems which supported their equivalent.

There is no charity which can operate for nothing. The Kiva team will have highly paid fund managers, analysts and support staff. Maybe not top tier salaries, but high enough to retain key staff.

Doners donate money for a fixed term into a fund. From the fund, loans will be given to charitable causes, who cannot raise money from traditional banks. They would have to supply a credible business plan and they are expected to repay the loan in full over an agreed term. But on top of the loan amount, they will be charged fees, start up, annual etc. This is where the Kiva team get their funds to run the scheme. Once repaid, the money goes back into the fund and can be used to provide another loan.

So the donor can see his money being recycled and used to help lots of causes.

But some borrowers default and do not repay. The original donor may not get all of his money back at the end of the term.

Overall it's a good way to donate to charitable causes, but it is only to projects that can repay in due course. The money will not go simply to people in need, such as starving or disaster situations.

The Kiva may not be exactly the same, but is probably similar.
 
IaninSheffield

IaninSheffield

Veteran
Location
Sheffield, UK
Sharky said:
There is a little bit of smoke and mirrors going on. I worked for CAF and the it systems which supported their equivalent.

There is no charity which can operate for nothing. The Kiva team will have highly paid fund managers, analysts and support staff. Maybe not top tier salaries, but high enough to retain key staff.

Doners donate money for a fixed term into a fund. From the fund, loans will be given to charitable causes, who cannot raise money from traditional banks. They would have to supply a credible business plan and they are expected to repay the loan in full over an agreed term. But on top of the loan amount, they will be charged fees, start up, annual etc. This is where the Kiva team get their funds to run the scheme. Once repaid, the money goes back into the fund and can be used to provide another loan.

So the donor can see his money being recycled and used to help lots of causes.

But some borrowers default and do not repay. The original donor may not get all of his money back at the end of the term.

Overall it's a good way to donate to charitable causes, but it is only to projects that can repay in due course. The money will not go simply to people in need, such as starving or disaster situations.

The Kiva may not be exactly the same, but is probably similar.
Click to expand...
Whilst the principles of Kiva are similar, it sounds like the disbursement of loans and covering of operating costs are dealt with slightly differently:

"How does Kiva cover costs?
We cover most of our operating costs through voluntary donations made by Kiva lenders. The remainder of our costs are covered through grants and donations from foundations and supporters. ...
Kiva never takes a fee from lenders. 100% of funds lent on Kiva go to funding loans."

Borrowers do pay the usual kinds of fees to the local field partners who provide the loans, although at more affordable rates than those from more conventional sources.

@Phaeton Will have a look at the CC group with a view to joining. Thanks.
 
OP
OP
D

Deleted member 26715

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I've just received partial payments back from the 2 loans I made
 
Speicher

Speicher

Vice Admiral
Moderator
Location
Next door to Mr Benn at No 54
GordonMiller said:
Is that foundation still working?
Click to expand...

Charities Aid Foundation is still working.
 
OP
OP
D

Deleted member 26715

Guest
My niece (16yo) was supposed to go to Vietnam (I think) as part of a school project, she was trying to raise £3K to fund it, I gave her £100 towards it, it was cancelled & the insurance paid most of it back, she offered me the money but I told her to open a Kiva account & loan the money out to projects of her choice.
 
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