Kiva.org - A Microfinance Example

I've spoken about microfinance before on this site. I learned a bit more about it while attending this year's Net Impact conference when I got to hear Maria Otero, the president and CEO of Accion International.

Two days after returning from the conference, PBS featured microfinance on their Frontline program. In this case, they featured Kiva.org, an organization that allows people to lend their money to specific projects. The Kiva.org site shows the entrepreneurs in need of funding. Individuals can choose to loan money to specific entrepreneurs and are able to receive updates about their progress with their business. To date, the repayment rate on Kiva.org loans are a perfect 100%. Lenders do not receive interest and are not allowed to write off any of the loan amount, but I feel strongly that if more people knew about this, the more help people in need would get the help they need to start or continue businesses that can literally turn their lives around. The reason for this is that they would have a personal connection with the specific projects they choose to lend their money to. And 100% of the money they lend goes to the entrepreneur - no administration fees are skimmed off the top like occurs when money is donated to charities.

Please check out Kiva.org's website and pass their information and information about other organizations dealing in microfinance, like Accion Internation, to people you think might be interested in helping touch the lives of individual entrepreneurs in countries throughout the world.