Kiva model un

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  • Mark from Cambridge had easy access to capital when he wanted to start facebook.Not just from friends and family. He could walk down the street and request a loan.
  • Maria from Costa Rica has a business idea too, but she doesn’t have the same luxury as Mark.She lives in a small village two hours away from the closest bank.She doesn’t own a car and the dirt roads leading to her are constantly washed out by heavy rains.It is too hard for Maria to get to the nearest bank. Once more, she doesn’t own any collateral and the bank doesn’t want to take a risk on her.How does Maria get a loan to build her business?http://www.kiva.org/lend/178859
  • Micro-finance innovates on financial services you and I enjoy everyday, but uses the following innovations to make the accessible to the poor:Small loan amounts payable in small increments over an extended time table.Low interest rates. Or, at least lower than loan sharks.Loan officers travel to the local communities and take risks on lending to risky borrowersCustomized loan packages. Eg. Agricultural loans with longer payment window that match local harvest cycle.Group loans to distribute risk
  • MuhammadYunus founded modern Microfinance 30 years ago in BangladeshAnd inspired an entire industry
  • Microfinance institutions typically get the money that they lend, from banks or non-governmental organizations, or both This can be expensive, as it is often borrowed with interestThere may also be difficult application procedures to access debt capital from non-governmental organizationsSome organizations can even find themselves shut out due to the region they operate in, particularly post-conflict regions
  • You become the lender through Kiva’s lending platform.Kiva partners with Microfinance Institutions who submit entrepreneurs to the website.You lend money through Kiva to the MFI who uses the money to sponsor an entrepreneur.MFI charges interest from the borrower so they can continue to run their businessKiva receives zero interest from the MFIs, only principal repayments.This cheap capital for MFIs helps them grow and sponsor more entrepreneurs than they could traditionally.You receive your dollars back with stories from Kiva lenders on how their business has grown.
  • Kiva.org, a lending platform. You become the lender.
  • Kiva.org, a lending platform. You become the lender.
  • Give a name, story, and aspiration to the face of poverty. Lend out of hope, not give out of shame.
  • http://www.kiva.org/lend/279700
  • Many people contribute to one loan from all over the world.
  • Connect lenders and borrowers through the website, Email,sms, q&a tools, kiva fellows.Constantly seeking new ways to connect people directly
  • The dream is to flip the lending process on its headThrough Kiva Benard in Kenya can loan to a poor person in the US.
  • 77 year old woman with 76 year old husbandA few years ago her husband decided crawling through the coffee fields on the hill in the rain was too hardCoffee prices were bad and he was getting to old for the workAn entreprising woman, Dona Maria saw a business opportunity in raising pigsPreviously her village had to travel two hours away to pehiybaye to the butcher to buy meatMeat was expensiveWith her 1,200 kiva loan Dona Maria built a pigsty and purchased 4 pigs who birthed 18 piglets in their first yearWith a friend started a butcher shop in townSells her piglets and pork to the butcher who sells to the towns people so they don’t have to travel so farThis is the dream of micro-finance: Create an economy where there once was noneToday Dona Maria’s husband no longer has to pick coffee and she is even able to pay for school for her son off the money she makes with her pigs
  • Lending groups are great ways to contribute as a team.
  • Class materials for high schools
  • Kiva Founder Matt Flannery:“One of the contributions that Kiva has made is to demonstrate that empathy increases generosity. The pictures and stories on the Kiva site increase understanding between various parties that would otherwise operate in completely different universes. When understanding increases, so does empathy. When empathy increases, so does generosity. People are inherently more generous towards people and causes they understand.”
  • Kiva model un

    1. 1. National High School Model United Nations<br />Gabriel Francis<br />Kiva Fellow<br />
    2. 2. Mark, Cambridge<br />
    3. 3. Maria, Costa Rica<br />
    4. 4. Give a man a fish you feed him for one day.<br />Teach a man to fish you feed him for life.<br />But what if all she needs is <br />a better fishing pole?<br />
    5. 5. Microfinance<br />Extends traditional financial services like loans in a way that is accessible for the poor.<br />
    6. 6.
    7. 7. Traditional Microfinance<br />Microfinance Institutions<br />Entrepreneurs<br />Banks and NGOs<br />
    8. 8. Kiva’s Model<br />You become <br />the lender of a <br />0% interest loan<br />Money and stories are exchanged between lender and borrower through Kiva and the Microfinance Institution<br />
    9. 9.
    10. 10. The Kiva website lets you shop for loan requests, just like browsing items on eBay or another website <br />
    11. 11. Kiva lenders make 0% interest loans which are paid back at the end of the loan cycle. Over 98.6% of loans are paid back.<br />
    12. 12.
    13. 13.
    14. 14.
    15. 15. Kiva’s mission is to connect people through lending to alleviate poverty.<br />
    16. 16. The Dream<br />You in USA<br />Benard in Kenya <br />
    17. 17. 562,273 Kiva lenders have lent over $ 198 million dollars to 515,195 entrepreneurs through 126 Microfinance Partners in 58 countries and the numbers are growing<br />Ukraine<br />Bosnia<br />Moldova<br />Azerbaijan<br />United States<br />Tajikistan<br />Bulgaria<br />Lebanon<br />Afghanistan<br />Iraq<br />Gaza<br />Nepal<br />Haiti<br />Pakistan<br />Mexico<br />Dominican Republic<br />Honduras<br />Senegal<br />Nigeria<br />Vietnam<br />Guatemala<br />Nicaragua<br />Ghana<br />South Sudan<br />Sierra Leone<br />Columbia<br />Cambodia<br />Uganda<br />Indonesia<br />Togo<br />Cote d’Ivoire<br />Cameroon<br />Ecuador<br />Kenya<br />Samoa<br />Tanzania<br />DRC<br />Peru<br />Mozambique<br />Bolivia<br />Paraguay<br />South Africa<br />Chile<br />
    18. 18. Kiva’s goal is $1 Billion <br />for 2 million borrowers <br />by 2015<br />
    19. 19. Success Story: Doña Maria<br />
    20. 20. How do I get involved?<br />Make a $25 loan<br />Start a lending group at your school<br />Volunteer<br />Translation<br />Programming<br />Community Outreach<br />
    21. 21.
    22. 22. Kivahighschool.org<br />
    23. 23. Understanding leads to empathy<br />and empathy is a core component <br />of world peace<br />
    24. 24. Kiva.org<br />gabe.francis@fellows.kiva.org<br />
    25. 25. APPENDIX<br />
    26. 26. Kiva in a box<br />
    27. 27. Yenku: Sierra Leone<br />Yenku Sesay is a 30 year old Sierra Leonean<br />In 2006 rebel soldiers cut off his hands as punishment for voting<br />When he was 21 years old, Yenku was a double amputee, whose only prospects were begging in the streets of Freetown <br />
    28. 28. Yenku Sesay: Survival to Success<br />Yenku was approached by a microfinance institution<br />The microfinance institution encouraged Yenku to take a loan of 300,000 Leones (about $100) to start a small business<br />Yenku sold soap, biscuits and small items for a small profit<br />As Yenku made a profit, he reinvested it into the business<br />Yenku now supports his family of three children, and even pays for his younger brother’s schools fees<br />

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