Kiva is an online non-profit organization that allows people to receive microloans. A microloan is a small amount of money that also has a small interest rate. These loans are funded and supported by borrowers all around the world. Lenders can choose how much money they would like to lend towards the cause. Each borrower may have a different amount of money or a goal that they would like to reach varying in different amounts of money. Lenders can contribute as much money as they wish, starting out as low as $25 to $500.
When viewing the loans on the website, there is an option to view the borrower's story, allowing the lender to learn about them and really connect with them. There is also another section that allows lenders to view the loan details, which can help determine possible risks. To include, money that is given towards any loan is repaid, meaning all money is reimbursed by a repayment date. Once lenders receive their money, they can choose to relend, donate the money to the company, or put it back into their banking account.
Kiva is great for making a difference in many people's lives throughout the world. What makes Kiva so special is being able to help others and being able to support their story.
Click the link to check Kiva out: https://www.kiva.org/
Kiva was founded in 2005 by a couple, Matt Flannery and Jessica Jackley. The couple both attended an event to listen to a guest speaker discuss microfinance. The guest was Dr. Mohammed Yunus who shared his personal experience of starting the Grameen Bank. Matt and Jessica were both asked, "What are your Career Goals"? which Matt responds, "I want to live in the Bay Area and be an entrepreneur" and Jessica responds, "I want to go to Africa and do microfinance".
With many goals and a lot of ambition little did they know just what their future would have in store for them. Jessica began her journey to achieve her dreams of microfinance in Africa. She received an opportunity to be a part of consulting with a nonprofit, the Bay Area called Village Enterprise Fund, which assisted entrepreneurs and small businesses with getting started by providing small loans and grants (Flannery). Jessica came in contact with small businesses in Africa and asked them questions that related to the challenges that were faced and overcome being an entrepreneur (Flannery).
Throughout Matts and Jessicas lives, they both spent much time sponsoring children in Africa with their families and church (Flannery). Therefore, when the words "Sponsor a Business" were mentioned, many thoughts and ideas arose, which eventually became a new business idea. The idea in question was to focus more on loans, rather than donations (Flannery).
Poverty is defined as the inability to make ends meet with the resources needed to live. Poverty can be found just about anywhere across the globe.
The effects:
-disease
-lack of education
-lack of proper medical care
-little availability to medications
-lower life expectancy
-higher mortality (high death rates)
Individuals who experience poverty may not always be able to live a happy, fulfilling life due to financial burdens. Not only can the effects of poverty impact a person's health, but it can also affect a person's mental health significantly.
Kiva allows you to connect with the borrower as you can support a cause that you are passionate about and care for. There are a variety of different stories that are shared on the Kiva website. If you want to support and help a beginning entrepreneur get started, Kiva is a great place for that!
Other causes that need support:
-women
-shelter
-agriculture
-education
-technology
-health
Making a difference in just a few clicks. How to start and where to start:
Step 1) Go to https://www.kiva.org/
Step 2) Create an account (if a new user) or sign in
Step 3) Find a loan
Step 4) Add to basket
Step 5) Checkout
Any money lent can greatly impact a life by helping to meet goals and aspirations.
Borrowers use their loans to improve their cause, whether that be paying for a child's education, home renovations for better living, or buying stock for business.
“Matt and Jessica Return from Uganda.” Kiva, https://www.kiva.org/blog/matt-and-jessica-return-from-uganda.
“Poverty.” Poverty - Healthy People 2030, https://health.gov/healthypeople/priority-areas/social-determinants-health/literature-summaries/poverty#:~:text=Across%20the%20lifespan%2C%20residents%20of,mortality%2C%20and%20lower%20life%20expectancy.&text=Children%20make%20up%20the%20largest%20age%20group%20of%20those%20experiencing%20poverty.
“Make a Loan, Change a Life.” Kiva, https://www.kiva.org/.
Kiva and the Birth of Person-to-Person Microfinance. https://www.kiva.org/cms/files/INNOV0201_flannery_kiva.pdf.
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