Microlending: Doing Good Never Cost So Little

Looking to support a cause where you can truly see the results?

Kiva was founded in October 2005 with the purpose of helping to bring micro credit to poor people worldwide who do not have access to traditional credit.  Instead of a donation, investors give loans to help get projects started.

Kiva allows the investor to focus their money on specific sectors of interest, whether that be in the arts, agriculture, small-scale manufacturing, etc  The individual investor gets to choose who they wish to fund.  The investor goes to the Kiva website and looks at the list of borrowers' profiles and chooses which individual to fund. 

The amount of money that can be invested starts at a minimum of $25, and then it's pooled with others investors' money to fund the individual projects around the world.  Once a project is chosen, investors deposit their part of the investment into a PayPal account with the Kiva organization (PayPal does not charge Kiva any fees for using their service).  Then, Kiva transfers the money to one of their local field offices of affiliated Field Partners who are in charge of dispersing the funds and collecting the repayment.

As of December 2009, Kiva had lent approximately $110 million, with a repayment rate of 98.13 percent. For every $1 in overhead expense spent, Kiva loans out $8.  This organization is helping to spread the benefits of micro-credit to people in need of small-scale loans throughout the world, helping turn entrepreneurial dreams into reality.