Kiva loan :)

[cosmosgrove]

Aww my 14 year old son just happily paid for a Kiva loan out of his own money. I suggested it to him after showing him the one I did last night and he didn't hesitate to say yes.

Just a little bit proud that he did that :-x

[azureline**]

I just got my first repayment for my Kiva loan.:-)

[cosmosgrove]

Yay 😄

Who would think you would be happy to receive $2.50 loan repayment 🙂

We have enough to do another loan (minus the optional fee), so I'll probably get my son to choose one next. Although he briefly entertained the thought of redrawing his initial $25 😐

The two we did at work have started getting repayments not sure if anyone there seems that interested in watching the progress. But oh well...

[azureline**]

Since your last update a total of $3.12 has been repaid into your Kiva account.:-x

[margo120_0]

Thanks for posting this topic. I meant to do it some time ago but forgot. I've now done a loan but what surprised me was that the guy that the money is going to needed $1,500 and was at 96% raised before my loan, 95% during the loan paying process and now 91% after the $25. I know that the amounts are in US dollars but I would have expected the percentage to go down.

As a single mum finding it tough years ago when my children were young I might go and look for some single mums next.

Thanks again

[monman12]

JMK: "You choose someone to loan your 25.00 to"

Not correct JMK, "if you research, "Kiva is a connector not of individual lenders to individual donors, but of individual lenders to microfinance institutions,” he said. “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".

[cosmosgrove]

Thanks for posting this topic. I meant to do it some time ago but forgot. I've now done a loan but what surprised me was that the guy that the money is going to needed $1,500 and was at 96% raised before my loan, 95% during the loan paying process and now 91% after the $25. I know that the amounts are in US dollars but I would have expected the percentage to go down.

As a single mum finding it tough years ago when my children were young I might go and look for some single mums next.

Thanks again

I'm not sure what is happening there, it should show the % raised which generally goes up not down. I haven't seen an example of what you have posted unless it is showing the % of how much left to raise ?:|

And Monman the high interest rates seems to be the 'fault' that people find with Kiva. I certainly don't know the workings enough to debate but the way I understand it is that the entrepenuers on Kiva have already been loaned the money before it even gets on the site. What you help to do is effectively pay the field partners their loan back for them, ideally before too much interest is charged.

This means if your choice of entrepeneur then defaults on loan repayments you lose your money not the 'field partner'. Hey I could have this wrong but this is how I understand it.

http://www.kiva.org/about/how/even-more

[monman12]

CMG: "This means if your choice of entrepeneur then defaults on loan repayments you lose your money not the 'field partner"

I think the Kiva (micro financing) concept is praiseworthy CMG, however I must point out again that you do not have your choice of entrepeneur when donating to Kiva.

“If Kiva’s users want to be connected to an individual borrower, Kiva doesn’t do that, and so the big question is, do Kiva’s users want to be connected to a microfinance institution — in which case, why do they need Kiva?”

Indeed, individual lenders can support microfinance institutions directly through, for example,  Microplace, or make donations to support nonprofit groups like the Grameen Foundation and Accion that support microfinance."

Whilst Kiva is a not for profit organisation, the funds it collects are distributed by its "Field Partners",  and as of April 2012, there are a total of 188 field partners listed on the Kiva website.

If one bothers to research more, you will discover that  35.21% is the average interest rate  and fees borrowers pay  to all Kiva Field Partners(2010).

An old NYT article: http://www.nytimes.com/2009/11/09/business/global/09kiva.html?_r=1

[cosmosgrove]

I understand what you are saying about choice of entrepeneur and it is explained on the website but that is the way Kiva works and markets the concept.

Kiva are a very transparent organisation and score very well on Charity Navigator. It isn't too hard to find information about their financials or those of their field partners. I guess if you wanted you could choose by field partners and choose those that charge less interest.

I did find this which I thought was interesting and explained the high interest rates.

http://www.kiva.org/help/interestRateComparison#AverageInterestRateBorrowerPaysToKivaFieldPartner

And the fact is I'm not the most charitable soul around but it sold me 😄

[cosmosgrove]

Just a heads up that there are more free Kiva trials available for new lenders. Great opportunity to try Kiva for yourself to see how it works.

My son has just reloaned his money again 🙂

[j*oono]

That's nice 🙂

I've been repaid about ten percent of the initial offering which was not that long ago.  It's non profit and to help others.