Are you looking to lend some of your disposable income to needy entrepreneurs? Now all that you need, is to have a Paypal account! Read on…
As Wikipedia puts:
Microfinance refers to the provision of financial services to poor or low-income clients, including consumers and the self-employed
In other words, Microfinance refers to lending small amounts of money to the needy entrepreneurs, which they otherwise may not get from Banks either due to the smaller amount or the lack of repayment record.
Kiva provides a unique channel to directly lend the needy entrepreneurs. Each needy entrepreneur has a profile for the lenders to know, what they will do with the money. You can lend as low as $5 and there are professional and dedicated Kiva fellows to make sure that the money is appropriately disbursed. They also take of training the entrepreneurs, if needed, to make the best use of the money.
This is how the entire cycle works:
- A needy entrepreneur creates a profile with the project details and request for loans
- A lender goes through the profile and decide to lend part or full amount
- The lender pays via Paypal and Kiva takes care of disbursing the loan
- The entrepreneur uses the money to build their business and repays during course of time
- The lender gets back the money. He/she can choose to lend it back or withdraw
To know more, check out How Kiva Works.
Kiva is highly unique due to the following reasons:
- Direct channel and provides high transperancy for the lenders
- Simple to use, as all that you need is a Paypal account to start lending
- One can easily track the progress of an Entrepreneur and how the money is used