loans that change lives $25 loaned so far $475 still needed $25 LEND NOWKiva.org is a non-proﬁt revolutionizing the ﬁght against global poverty byenabling people to connect with and make personal loans to low-incomeentrepreneurs in the developing world. Through Kiva, anyone can make a direct loan of as little as $25—and in doing so contribute to a vital inﬂux of “Innovation of the Week: Kiva.org uses capital to the developing world where smart design to make a little cash most of the poor are self-employed go a long way.” entrepreneurs. A small loan to purchase business-related items such “If you’ve got 25 as sewing machines or livestock can bucks, a PC and a dramatically improve the life of an PayPal account, you’ve now got the entrepreneur and his/her family, thus wherewithal to be an international empowering them to earn their way ﬁnancier.” out of poverty.
Access to a Worldwide farmer in Kenya, a man who wants to open a shoe shop in Honduras, or a tailor in Bulgaria. Network Lenders can then loan as little as $25 to the entrepreneur of their choice via PayPal, a The concept behind Kiva is simple: globally recognized online payment service. Bring together lenders and worthy enterprises on Kiva’s website. ? When a loan is — From Kenya to Ecuador, microﬁnance completely funded Microﬁnance institutions (MFI) around the world go to by individual institutions (MFI) Kiva.org and post photos and proﬁles of low- lenders, Kiva pools Organizations that income entrepreneurs in need of money for the money and give small loans their businesses. transfers it to an that help poor people who MFI partner who wish to start or expand administers it to the their small businesses but Loans made easy and personal. entrepreneur. are too poor to qualify — Lenders go to Kiva.org and browse for traditional bank loans. through proﬁles of low-income — Journal updates Over 10,000 MFI exist entrepreneurs—a dairy keep the lenders worldwide informed about the progress of the entrepreneur they sponsored. LoanMFI posts an entrepreneur’s repayments made by the entrepreneur over thephoto and loan information course of about 6-18 months are sent back to Kiva by the MFI partner.on www.kiva.org Once loans are repaid, Kiva users can choose to withdraw their principal—or re-loan to another entrepreneur. Kiva users browse proﬁles, select an entrepreneur, and then loan money using a PayPal account Kiva wires the loaned funds to the MFI partner, who in turn disburses them to the entrepreneur. $ MFI
Revolutionizing Philanthropy stopped many would-be entrepreneurs from achieving their potential. Thus, Kiva wasUnlike any other organization, Kiva allows born—founded to decrease the burden ofindividuals to ﬁght global poverty in a high interest rates by enabling internet userspersonal and sustainable way by enabling to make personal loans to entrepreneurs inthem to directly connect with low-income poor communities throughout the world.entrepreneurs in the developing world. After considerable research and planning,A loan through Kiva is not a hand-out: it the Kiva.org website was launched inis a source of empowerment for both the October of 2005. In its ﬁrst year, Kiva rapidlygiver and the recipient. Kiva users are not grew to become the most trafﬁcked site indonors; they are lenders in “peer-to-peer” microﬁnance, generating millions in loans tomicroﬁnance, a process based on mutual thousands of entrepreneurs in developingrespect and trust. Kiva lenders see exactly countries. Kiva has also received wide acclaimwho their money goes to, what the recipients from the blogosphere, mainstream mediaare doing with it, and how it is making a (including NPR, BBC, CNN, Wall Street Journal)difference. For and development experts. The Kiva websitethe entrepreneur has fostered cross-cultural relationships ?and their family, and provided thousands of families with What doesone small loan small loans and fresh hope for a sustainable “kiva” mean?can change livelihood. Kiva is a Swahilitheir lives—and word meaningtheir whole “agreement” or “unity”. Inside Kivacommunity’sfuture prosperity. Headquartered in San Francisco, Kiva is staffed and headed by experienced consumer internet and microﬁnance leaders with yearsKiva’s History of technology proﬁciency from companiesKiva was founded in 2004 by husband and such as Ebay/PayPal, LinkedIn, TiVo, Google,wife team Matthew and Jessica Flannery. and MySpace. A number of major internetDuring a trip to East Africa to assess how partners support Kiva, includingmicrolending impacts local communities, PayPal, YouTube, Google,Matthew and Jessica became concerned with MySpace andthe dependence of microﬁnance institutions Microsoft.on local banks, most of which charge highinterest rates on loans. The pair was certainthat the prohibitive cost of loan repayment “Revolutionizing how donors and lenders in the US are connecting with small entrepreneurs in developing countries” “Kiva simply “At Kiva.org, a democratizes access to a schoolteacher worldwide microﬁnance in Kansas can partner with an expert movement that has been seamstress in countries like Kenya, empowering the working poor for Mexico and Ecuador to jump-start a two decades.” tailor shop.”
Elizabeth Omalla Location: Uganda Loan Use: Fish Seller Loan Amount: $500.00 A widow from Tororo, Uganda, Elizabeth supports eleven people by selling ﬁsh. Thanks to the loan, which she has repaid, Omalla now sells more $500 loaned so far varieties of ﬁsh and has been able $0 needed to “take my children to school, buy two cows and ﬁve goats, and open a $25 LEND NOW savings account.”Name: Maria Elena Mejia Name: Denis Tukei Name: Khadijatou NdiayeLocation: Nicaragua Location: Uganda Location: SenegalLoan Use: Tailoring Loan Use: Clothing Sales Loan Use: Fish SellingLoan Amount: $200.00 Loan Amount: $900.00 Loan Amount: $1000.00Name: Alice Wairimu Kimani Name: Shukufa Feyzullayeva Name: Hilario OlveraLocation: Kenya Location: Azerbaijan Location: EcuadorLoan Use: Dairy Farming Loan Use: Clothing Sales Loan Use: Shoe MakingLoan Amount: $1800.00 Loan Amount: $800.00 Loan Amount: $600.00