Kiva.org was recently featured in a CNN much better news source article for the interesting way it promotes microfinancing – connecting people with (relatively) discretionary cash and entrepreneurs from developing countries in need of cash advances to start businesses within their communities.
No interest is earned on the investment through Kiva (thankfully), but status updates on the business and a repayment plan is posted to the site for the investor to review. And the rate of repayment is high:
Contrary to expectations, repayment rates for microfinancing are high: Kiva’s repayment rate is about 97.2 percent, according to Shah, and Turner says the historic repayment rate on microfinance loans in general has averaged 97 percent.
So if you are looking to help someone make a positive impact on their society but don’t feel like your $20 donation to a major charity is going anywhere, seriously consider microfinancing through Kiva. You’ll form a personal connection with someone, and will be helping them to realize entrepreneurial dreams.
