KIVA.org
Recently I was introduced to an non-profit organization called KIVA.org through an acquaintance. Kiva headquarters are located in San Francisco, but their work is done on 5 continents through micro-finance institutions that they call Field Partners.
So, what does Kiva do? Through the Field Partners, they accept loan applications from individuals and groups that normally would not have access to capital.
For example, Gantumur Rolomjav is a 50 year woman living in Ulaanbaatar, Mongolia. As I write this, she is a featured borrower attempting to raise $2,025 to help her daughter’s grocery store grow with needed working capital. Mrs. Rolomjav works in a meat factory packaging department, but works with her daughter when she is not on the job. With this loan they will be able to buy more inventory and stock to sell.
So, far lenders such as you and I, have committed 45% of the total she asking for. You can lend as little as $25. The loan will be paid back over the next 21 months.
You might be wondering if these loans really get paid back. The short answer is, YES, they do and this allows your money to keep on doing good things.
In the example above, the Field Partner that will administer this loan is called Credit Mongol LLC. Here are some statistics about their activity.
Field Partner: Credit Mongol LLC
Field Partner Risk Rating: 4 out of a possible 5 stars
Active Time on Kiva: 13 months
Kiva Entrepreneurs: 345
Total Loans Made: $508,625
Portfolio Yield: 29.00% Profitability
(Return on Assets): 3.7% Average Loan Size
Delinquency Rate: 0.00%
Default Rate: 0.00%
Currency Exchange Loss Rate: 0.00%
As you can see, this Field Partner is have wonderful success. In looking through the various loan requests, I noticed that other Partners may have not quite as good a rating, but on the whole….the organization is making very good decisions and the delinquency rates are extremely low.
One aspect about Kiva that it is very appealing, is that 100% every dollar loaned goes to the borrowers. Kiva funds it’s costs from donations from corporations and individuals. After learning of how much other charitable organizations extract from donors, this is really refreshing way help some good happen in the world. I think it proves most people really don’t want just a “handout”, just want an opportunity.
When I first went to the site today, I noticed they have a great way to share this…..through gifts. I immediately recalled I have a niece and a nephew with birthdays coming up. I have racked my brain trying to think of something to give them…they pretty much have everything they want and really needs a new toy or game.
I don’t know if they will enjoy this, but I was able to send them gift cards with enough money attached to make a few small loans. They will have to scan the over 1000 current loan requests and decide if they want to help a farmer, a merchant, a family trying to build a house, or any other worthy requests. I hope it will bring a real sense of the needs in the world to them.
In any event, you should check the organization out for yourself at http://Kiva.org .