Loans that change lives

I want to make a difference in this world. I want to leave it better than it was during my life. So how do I make that happen?

I do it with the choices I make every day of my life, from how I chose to use my money, spend my time, and the organizations and causes I support. I am a Rotarian because of what Rotary does in the world and its motto, “service above self.”

I buy “fair trade” goods, like Peace Coffee, because it improves the lives of those that work to produce the goods I consume. I like their motto, “every purchase matters” and their efforts to provide better income, working conditions and community for those workers that commit to fair trade.

I am also a fan of micro-loans, a way of investing in people living in developing countries. Micro-loans are made to low-income individuals who typically do not have access to banking services. I just made another loan this week, $25 to a woman engaged in farming in Kenya. I have 13 active loans, each for $25, to persons from 4 different countries, Nicaragua, El Salvador, Costa Rica and Kenya. Five of my previous loans have been paid back in full and then re-invested in others seeking micro-loans. Five of my active loans are to people still in need of additional loans and the others are all repaying the loans. I like this approach, a hand-up, rather than a hand-out.

The majority of my micro-loans are through Kiva (www.kiva.org), a non-profit organization with a mission to connect people through lending to alleviate poverty. They have made $442 million dollars in loans with a repayment rate of 99.03%. They have made loans to people in 68 countries, including the United States and most of the developing countries in the world. One hundred percent of every dollar you lend on Kiva goes directly towards funding loans. Kiva does not take a cut. Furthermore, Kiva does not charge interest to their field partners who administer the loans.

Today, I received an update on two of my loans, one to Bairon Angel of Nicaragua who has paid back 71.6% of his loan and the other from Jose Orlando of El Salvador who has paid back 46% of his loan.

I also support micro-loans through my church, Guardian Angels of Oakdale and through Rotary International (there are Rotary Clubs in Lake Elmo, Oakdale and throughout Minnesota.).

What has been your experience with micro-loans? I want to encourage to you to make a micro-loan through a non-profit organization like Kiva and help change the world. Their motto is “loans that change lives.”