on 21-10-2011 10:13 PM
on 22-05-2012 03:26 PM
Sorry, I actually meant that the amount I posted earlier I thought it was the total repaid so far, it wasn't. My second post was the whole amount paid so far.
on 23-07-2012 07:27 AM
You Loaned: $25.00
Newly Repaid: $8.33
Total Repaid So Far: $20.83 (83.32% of your loan)
Repayment Status: Paying back on time
Latest update.
on 23-07-2012 01:06 PM
"if you research, "Kiva is a connector not of individual lenders to individual donors, but of individual lenders to microfinance institutions,”If Kiva’s users want to be connected to an individual borrower, Kiva doesn’t do that"
"According to its web site, Kiva quotes interest rates as the "self reported average rate charged by the Field Partner to the entrepreneur." As of January 7, 2010, 35.21% is the Average Interest Rate and Fees Borrowers Pay (Portfolio Yield)...
I wouldn't mind that return of interest as a "Field Partner".
on 23-07-2012 04:36 PM
I gave a Kiva loan ($25) with the promotional credit (not my money).
It is a 'delinquent' loan now. Repaid 34c in July.
on 23-07-2012 07:13 PM
My sister has had a delinquent loan, that's her first out of around 6, I think it was one of the group loans. I'm on my fourth with no problem and the work one has two going with no problem.
It's a risk you take with Kiva. I've just had a look and I nearly have enough to loan again 🙂
on 23-07-2012 07:21 PM
I received another two repayments on my loans a few days ago. John, I'm aware that mainly the money has already been lent to the person and they are just funding existing loans. To be able to see the people that are being helped just encourages people to make what could be just a donation.
I didn't know that the field partners charged such hight interest but are you sure that information is correct? After all, it say's
"After receiving a user's money, Kiva aggregates loan capital from individual lenders and transfers it to the appropriate Field Partners, who then disburse the loan to the entrepreneur chosen by the lender", which isn't really how it is done.
on 23-07-2012 07:36 PM
I've posted this link before and it explains the high interest rates. It's one of the things I like about Kiva it seems quite transparent and also does well on Charity Navigator receiving its highest rating.
http://www.kiva.or/help/interestRateComparison#AverageInterestRateBorrowerPaysToKivaFieldPartner
Average Interest Rate Borrower Pays To Kiva Field Partner: The self reported average rate charged by the Field Partner to the entrepreneur. Note that Kiva.org does not currently take a cut of the interest rate charged by Field Partners and instead relies on an optional lender fees/donations to help pay for running our website (small core staff, rent, servers, etc).
If the Field Partner interest rate seems high, consider the following:
Field Partner interest rates are a highly affordable alternative to the local money lender
Local money lenders - often the only option for poor entrepreneurs to get a loan - charge interest rates ranging from 60% to 800% annualized.
A poor entrepreneur can generate greater benefits from additional units of capital than can a highly capitalized business, because she or he begins with so little.
According to the World Bank, studies covering India, Kenya, and the Philippines found that the average annual return on investments by microbusinesses ranged from 117 to 847 percent.
The costs of making a micro-loan in the developing world are higher versus larger loans in the West.
Cost of screening - Field Partners must screen entrepreneurs who commonly have no credit history, no collateral, are frequently illiterate, and often live in remote areas. To responsibly assess the credit worthiness of each entrepreneur, the cost is higher than the West where most everyone has a credit score and screening / loan application can be done electronically.
Cost of in person collections - Field Partner staff typically travel to each entrepreneur on a monthly basis to make collections. Compared to the West, where mail and internet repayments are standard, the costs are higher.
Cost as a size of the loan - If the Field Partner's actual cost per loan is $25, the percentage cost is 0.25 percent for a $10,000 loan, but 25 percent for a $100 loan.
Field Partners must charge an interest rate that allows them to pursue their social impact agenda sustainably.
In order for Field Partners to reach more of the poor with relatively low interest loans (vs. local money lender), they need to cover their costs.
Given the higher costs of microloans discussed above, Field Partners must charge a sufficient interest rate.
Kiva aspires to provide transparency around the social impact and relative Field Partner interest rates in order to ensure to reward Field Partner that successfully create social value while lowering their costs to do so.
on 23-07-2012 07:38 PM
And here you go, the simplified version of how it works, the long version is a link on the left of the page.
http://www.kiva.org/about/how/more
on 23-07-2012 07:41 PM
Thanks for that Cosmosgrove. Anyone else that wants to look, you need to put a g in org.
on 23-07-2012 07:43 PM
I will relend when mine is done. 🙂