Suggested Notes: The poor are typically excluded by financial service providers: No collateral No credit history Illiteracy The poor need financial services, and already use them informally: Borrowing money from loan sharks with interest rates so high that it may be impossible to ever pay back Savings accounts kept in the home, vulnerable to theft Investing in livestock which is vulnerable to disease Microfinance works to provide the poor with these financial services, in a safe and controlled environment, through a microfinance institution
Suggested Notes: With Kiva, you can be micro-lender You can act as a banker and provide the funds to microfinance institutions that they then lend to entrepreneurs
Suggested Notes: There are thousands of microfinance institutions around the world, and they all vary a little depending on the region they are in and people they are targeting to help Some focus on women in places where women don’t have the same rights as men and so have no economic empowerment Some focus on the rural population in areas where people are isolated and cannot travel to cities to access services Some focus on a comprehensive program which includes business training with financial products What ties them all together, however, is a desire to help the poor by providing them with financial services The Good and the Bad of Microfinance: (Optional Notes) What are the good things about Microfinance? With a relatively small amount of money, poor people can start or improve their business Most formal lending institutions won’t lend to them. Why? Microfinance can help women and girls Microfinance works inside communities Microfinance is empowering Microfinance is person to person development What are the bad things about microfinance Takes a long time to get a loan Borrowers have to do a lot of things to get a loan So borrowers look for MFIs with the fewest requirements What does this mean? It costs a lot to give a loan, so interest rates are high How high? Not everyone wants a business, some wish they could be an employee
*** Please fill in X’s with numbers from the Kiva Facts and History Page. Go to this link to find the latest numbers http://www.kiva.org/about/facts Also, please, carefully read the statistics and double check that your presentation represents the correct numbers. The stats in red are responses to these facts on the Kiva website: - Total value of all loans made through Kiva Number of Kiva Field Partners (microfinance institutions Kiva partners with) - Number of countries Kiva Field Partners are located in
$1B in cumulative loans via 3m lenders
1. Kiva.org Event Title Presentation Date Speaker’s Name
2. First loans made in Uganda, 2005
3. Introduction to Microfinance Half the world lives on <$2/day Microfinance is the provision of financial services to the poor Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime. What if he knows how to fish, but just can’t afford a fishing net?
4. The Traditional Microfinance Lending Process Banks and NGOs <ul><li>Microfinance institutions typically get the money that they lend, from banks or non-governmental organizations, or both </li></ul><ul><li>This can be expensive , as it is often borrowed with interest </li></ul><ul><li>There may also be difficult application procedures to access debt capital from non-governmental organizations </li></ul><ul><li>Some organizations can even find themselves shut out due to the region they operate in, particularly post-conflict regions </li></ul><ul><li>Restrictions that microfinance institutions face ultimately affect the entrepreneurs, who rely on microfinance institutions to serve them </li></ul>Microfinance Institutions Entrepreneurs
5. How Kiva works Internet Lender Online marketplace Local Partner (MFI) Entrepreneur Money Information
6. “ Kiva in a Box”: The Big Picture
7. Online lending platform <ul><li>Kiva.org is a website which allows you to lend to an entrepreneur who needs a loan </li></ul><ul><li>Through Kiva, you loan as little as $25 to an entrepreneur at 0% interest </li></ul>
8. www.kiva.org <ul><li>The Kiva website lists loan requests which you can browse , just like browsing items on eBay or another website </li></ul>
9. www.kiva.org Size of the loan and status Summary of the business and loan, including when it is expected to be paid back Information on the microfinance institution which is managing the loan on the ground Picture of the entrepreneur Description of the business and what the loan will be used for
10. www.kiva.org The business page also shows you all of the other people around the world who are contributing to this loan
11. Where are we today? Mexico Guatemala Honduras Nicaragua Haiti Dominican Republic Samoa Ecuador Peru Bolivia Paraguay Senegal Sierra Leone Cote d’Ivoire Ghana Togo Nigeria Cameroon DRC Mozambique Tanzania Kenya Uganda South Sudan Indonesia Vietnam Cambodia Nepal Pakistan Afghanistan Tajikistan Lebanon Gaza Iraq Azerbaijan Ukraine Moldova Bosnia Bulgaria Kiva has lent over $ XX dollars in loans through XX Microfinance Partners in XX countries and is still growing
12. New loan categories Scale Break Even Innovate $1 Billion for 2M borrowers Self-sufficiency at scale The next 5 years: 3 aspirations
13. Yenku: Sierra Leone Yenku Sesay is a 30 year old Sierra Leonean In 2006 rebel soldiers cut off his hands as punishment for voting When he was 21 years old, Yenku was a double amputee, whose only prospects were begging in the streets of Freetown
14. Yenku Sesay: Survival to Success Yenku was approached by a microfinance institution The microfinance institution encouraged Yenku to take a loan of 300,000 Leones (about $100) to start a small business Yenku sold soap, biscuits and small items for a small profit As Yenku made a profit, he reinvested it into the business Yenku now supports his family of three children, and even pays for his younger brother’s schools fees
15. <ul><li>Make a $25 Loan </li></ul><ul><li>Give a $25 Kiva Gift Certificate </li></ul><ul><li>Spread the Word! (email footer, add Kiva to your blog, join Facebook cause, follow Kiva on Twitter) </li></ul><ul><li>Start a Lending Team (join an existing team, start your own team with family and friends) </li></ul>Get Involved Today!
16. Become a Kiva Fellow! - Work overseas with one of Kiva’s Field Partners to help facilitate connections between Kiva Lenders and Borrowers http://www.kiva.org/fellows Join Kiva’s Loan Review & Translation team - Volunteer your time remotely to help review and translate loan profiles that are posted by our Field Partners http://www.kiva.org/volunteer Intern in Kiva’s San Francisco Headquarters - Volunteer with Kiva in a part-time capacity for 4-8 months, it’s a great opportunity to learn more about Kiva’s model http://www.kiva.org/volunteer Join Kiva’s Developer Community - Are you a developer, designer or tech-fanatic? Learn more about our API and join our awesome developer community! http://build.kiva.org/ Take it to the Next Level: Want to get more involved or know someone who might?
17. Questions ? Please visit our Help Center http://kiva.org/help