What I've learned by my 70th KIVA loan...

[sabrinamari]

1. If you pick one, or at maximum two, organizations to help, you can make a big difference.

2. Once you've funded a critical mass of microloans by doing one or two a month for a year or so, you can just keep reloaning the same dollars as they are repaid without putting more money in.

This allows you keep on giving---and keep on helping---right through tough financial times.



"Ayaba Gloria Kuegah is a young single woman with a real passion for dress-making. She opened her own studio in 2005 after training for 3 years under the instruction of a dynamic woman. Now, working for herself, she works in every possible way to ensure the success of her small business. She is asking for this first loan in order to buy ‘pagnes’ (coloured West African cloth) and fabric so that she can make and sell clothes. With the income from this business, she will be able to support herself."

http://www.kiva.org/app.php?page=businesses&action=about&id=96629

Comments

Questions about Kiva

[elphaba-of-oz.livejournal.com]

Do the borrowers pay intrest, or just pay back the moeny you lend?

Have you ever had anyone default?

Re: Questions about Kiva

[sabrinamari.livejournal.com]

Borrowers pay interest to the local grassroots organizations that coordinate and manage their loans---they don't pay interest to you, the lender. Small local banks usually coordinate these loans, and they need to pay their employees and cover a wide range of expenses (like sending field workers out into the back country over crappy roads once a month to check in with borrowers). Lenders are offering the use of their money without earning any interest, at least not financial interest.

Yes--a tiny number of laons partially defaulted. Last night Michael figured out that I've made about $2000.00 worth of loans since I began lending on KIVA, including gift certificates and starter loans for friends. This figure includes a great deal of re-lending and recycling of the same dollars: as loans were repaid I loaned out the money again.

In all that time, one local microbank went under, causing about 4 loans to partially default (the folks to whom I loaned the money were not the problem---they repaid as promised). The probelm lay with the local microbank's accounting and money handling practices, a fact that came to light after I made these loans). I lost a total of about $48. I can live with this kind of default rate. :)

Some loans have been paid back later than planned, but this was never a problem for me---it only meant that I was unable to reloan the money to someone else right on schedule. But this has been OK too: there are almost always people applying for microloans, so whenever the money is repaid, I can easily relend it.

When I've needed to withdraw money (which Ive done once or twice) I've been able do so easily via Paypal. Default is always a possibility, but thus far, the default rate on my loans, which I've spread among multiple regions and local microbanks--has been minimal.

So far, I've been very happy with KIVA.

Re: Questions about Kiva

[elphaba-of-oz.livejournal.com]

I might have to do it.

Are you back or is there only Zuul still?

Re: Questions about Kiva

[sabrinamari.livejournal.com]

I'm back. I need to get some work done and have friends make me laugh, which they did.

Apparently, silly humor, support and time working on my book banishes Zuul.

{{{elphaba}}}

[badseed1980.livejournal.com]

I've been thinking about this idea for a while now, and I decided to make a small loan. Very small, for now, but I might up it later. I thought about all the episodes of No Reservations I've seen, where Tony Bourdain visits these little hole-in-the-wall joints where people cook gobsmackingly awesome food in third-world countries, and I figured I'd like to help fund someone in the food business. I picked a woman and her husband who own a bakery in El Salvador. I put your e-mail in the "who referred you" box, so you'll probably be getting a thank-you from Kiva.

[sabrinamari.livejournal.com]

This sounds very, very cool. I would love to read about about the business you've sponsored. Can you put a link to it on LJ when you have a little time?

Thank you for noting me as the referral. I too was pointed to KIVA by a friend on LJ---the lovely wylddelirium, in fact.

[badseed1980.livejournal.com]

Sure, this is the business I'm sponsoring:

http://www.kiva.org/app.php?page=businesses&action=about&id=96997

[sabrinamari.livejournal.com]

Thank you. :)