– Review

Kiva is a p2p lending organization which came in the market with the aim of eradicating poverty from the society. This was achieved by providing small loans to mainly startup entrepreneurs in the developing countries who cannot afford to go to the bank for a loan mainly because of their inability to pay any deposit or collateral for the loan. Thus Kiva doesn’t work for the lenders who are trying to earn interest on their money but rather it focuses on helping out the potential entrepreneurs who need financial help to get started.

How kiva works:

Basically Kiva operates by collecting microloans from organizations and individuals and then it employs its field partners who then distribute the money among the deserving entrepreneurs in the developing countries.

One notable aspect about the operations of Kiva is that it also provides training and support programs to the entrepreneurs who need some sort of help. The details of the loan repayment are posted on the Kiva website and also emailed to the lenders who want to receive it.

Making loans via Kiva:

For the ease of lenders, Kiva has maintained a list of entrepreneurs who are looking for safer loans to improve their operations. Lenders can browse through the list and select the entrepreneurs they wish to give loan to. The payment can be made through PayPal or via credit card. Once the loan has been repaid the lender has the option to lend someone else from the list or even withdraw their money if they want to. The best thing about Kiva loan service is that you can contribute with as little as $25 which is not that burdensome to do. Hence in this way Kiva is alleviating poverty in the most efficient way possible; one entrepreneur at a time.

Well, the biggest plus side is that a person gets to help improve a life of a deserving person with as little a risk as $25. The impact of such a lending is multifold. Not only you work for a noble cause by lending money, but you also get to realize the importance of money and how little is required to transform an individual’s life in the most safest way possible. Your lending can help the entire community without you ever realizing the full impact of your donation. Kiva follows a simple and straightforward formula: one entrepreneur at a time, which will ultimately help eliminate the disease of poverty from the developing nations and help them grow and prosper so that they can stand on their own feet.

Although Kiva’s loan repayments are not guaranteed, they do have an impressive loan repayment rate of 98.43%.

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How Kiva works – Example