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Kiva anyone?

I just discovered Kiva.org and it seems like an awesome concept. Basically, it allows individuals to pool their resources to help entrepreneurs in poor countries get off the ground. You can make loans as small as $25 to someone who needs it. The cool thing is that once the loan is paid back, your account is credited and you can reloan the same funds to someone else, helping MANY people over time with the same initial investment (or you can withdraw the money via paypal if you really need it). The current repayment rate is 99% so these folks obviously know what they are doing. This just seemed like a great cause so I thought I'd spread the word here. If we get enough people, perhaps we could form a TA group and get a little friendly competition going with the other groups on the site.

i dunno cap. that sounds an awful lot like socialism to me

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Originally posted by pkcRAISTLIN i dunno cap. that sounds an awful lot like socialism to me

not rly..socialism is coercive..this is voluntary, the way it should be.

This is going to sound terribly uncharitable; however, I'm wondering what the interest rates are like... I didn't see them posted.

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Originally posted by Capitalizt not rly..socialism is coercive..this is voluntary, the way it should be.

ok...lending money at artificially low rates will create inflationary pressures

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Originally posted by Moral Hazard This is going to sound terribly uncharitable; however, I'm wondering what the interest rates are like... I didn't see them posted.

moral hazard: third-world money lender.

Re: Kiva anyone?

quote:

Originally posted by Capitalizt I just discovered Kiva.org and it seems like an awesome concept. Basically, it allows individuals to pool their resources to help entrepreneurs in poor countries get off the ground. You can make loans as small as $25 to someone who needs it. The cool thing is that once the loan is paid back, your account is credited and you can reloan the same funds to someone else, helping MANY people over time with the same initial investment (or you can withdraw the money via paypal if you really need it). The current repayment rate is 99% so these folks obviously know what they are doing. This just seemed like a great cause so I thought I'd spread the word here. If we get enough people, perhaps we could form a TA group and get a little friendly competition going with the other groups on the site.

How do you know it goes to the people directly, and not some corrupt scammer?

Re: Re: Kiva anyone?

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Originally posted by _Ocean_Drive_ How do you know it goes to the people directly, and not some corrupt scammer?

Well, microcredit is a common concept, and I've heard on the BBC about some websites that do just that... so I take it this is how it works.

And what sort of scammer would risk getting in trouble for just a few dollars?

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Originally posted by pkcRAISTLIN moral hazard: third-world money lender.

I'm just trying to figure out if this should be regarded as charity or capitalism.

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Originally posted by pkcRAISTLIN i dunno cap. that sounds an awful lot like socialism to me

It sounds more like a promising Ponzi scheme to me, but call me a pessimist.

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Originally posted by Arbiter It sounds more like a promising Ponzi scheme to me, but call me a pessimist.

So it's charity?

Yeah sounds kinda cool. I researched a little bit about these types of microcredit systems in a couple of courses I took this year. It's a really good way to facilitate sustainability in developing countries - and to fight the evil forces of globalization (heh).

Re: Re: Kiva anyone?

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Originally posted by _Ocean_Drive_ How do you know it goes to the people directly, and not some corrupt scammer?

Click the "about" page and read about how it works. They have been around for years and do regular audits on the "field partners" administering loans. There is a rating from one to five stars on each loan page revealing the financial health of the field partner. To date, the overall repayment rate is something like 98.9%..so the vast majority of loans do get paid back.

And moral hazard, the interest rates vary depending on country and risk factors. You just get your loan amount back when it is repaid though. The interest goes to the cost of running the programs..not the lenders, hence the word "charity".

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56 Year old Bwogi Rehema has been selling charcoal, chicken, firewood and movie DVD's

I'm struggling to find something in common among all the goods she sells

That's a smart move, actually. She's diversifying her resources.

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Originally posted by Lira I'm struggling to find something in common among all the goods she sells

Sounds like a "dinner and a movie" package to me.

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Originally posted by Miss Pie That's a smart move, actually. She's diversifying her resources.

Much to the dismay of the MPAA.

interest rates?

I just loaned $125 in 5 loans. It feels good to be a socialist..woo!

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Originally posted by Nrg2Nfinit interest rates?

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Originally posted by Miss Pie That's a smart move, actually. She's diversifying her resources.

I know, but it's still odd

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Originally posted by MrJiveBoJingles Sounds like a "dinner and a movie" package to me.

Good call

Its a worthwhile cause. Enough to earn one of the pioneers of this microcredit concept a nobel peace prize back in 2006.

National Geographic article

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Originally posted by Nrg2Nfinit

answered earlier.. The interest rate you get is 0.00%. The rates are set by the local field partners and the interest goes into running the operation. Typically rates range from 9% to 25%. That sounds high by our standards, but for small loans in developing countries, it is not out of the ordinary. They've got to hit the right balance between affordability and making enough extra to compensate for those who default. Given that the repayment rate to lenders is 98%+, it's obvious they've struck the right balance.

lol kind of sounds better then the stock market these days then.

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Originally posted by Penalba since YOU should be profiting and NOT them.

Entirely not the point of this. Jesus.

I'm pretty sure you've misinterpreted what "running the operation" means and who benefits.

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