Kiva (organization)

Kiva is an American non-profit organization that allows individuals to lend to micro -finance institutions microloans over the Internet to small businesses and individuals, especially in developing countries. The non-profit organization based in San Francisco is supported by donations from its users and, among others, PayPal, YouTube, Google, MySpace and Microsoft.

Expiration

Kiva allows anyone to become lender (lender ). The lenders can determine which people or projects he would like to promote themselves. Local partners ( Field Partner ) select the credit receiver ( Entrepreneurs ) and present them to the website of Kiva potential lenders. The Field Partners are regional institutions, such as national organizations of BRAC, a partner of World Vision or numerous other charitable and commercial organizations. Overall, Kiva has collaborated over the years with so far 213 partner organizations. Some of these collaborations ended for different reasons, for example, was discovered with one of the partner organizations in the Ivory Coast, in the corruption.

The Kiva lenders make their interest free credit available. Kiva itself calculates its partner organizations also no interest. However, the local microfinance institution shall calculate the borrower interest rates in order to cover its own costs. According to Kiva, the average repayment rate of borrowers is about 99.01 %.

Kiva offers since August 2008 to the lenders, to join together in groups (teams ). Thus, not only a relationship between lenders and borrowers, but also among the lenders are prepared.

Origins

The microfinance concept is based on the ideas of Nobel laureate Muhammad Yunus, who successfully founded in 1983 with the Grameen Bank in Bangladesh showed that micro loans offer many advantages over other support frameworks. Yunus criticized in the development programs of the World Bank in particular the high administrative costs and the long time it takes for the needy receive the funding.

Others

On the board of Kiva Reid Hoffman is sitting. This had $ 1 million donated to the organization in March 2012.

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