Kiva.org - loans that change lives

Beth and I saw a TV show on PBS about Kiva - they are a non-profit organization that connects willing US lenders to international recipients in second and third world countries through micro-loans. Micro-loans are small loans at low finance rates used to help individuals begin or expand their personal businesses. These loans are often provided at significantly lower interest rates than a small business owner could receive through their local bank or money-lender. The business owners are typically from impoverished areas and are using the loans to make a better life for themselves and their families.

You can provide a loan - yes, YOU - as small as $25. Often times, several Kiva users will fund small amounts to total what one individual lendee is requesting. Just browse the site and find a business which you feel like lending to and you will see all the other current lenders to that business. Once the business owner is fully funded Kiva distributes the loan through a local NGO.

That is one of the cool parts: all of the individual businesses requesting loans are screened by local NGOs who specialize in micro financing. And, another great aspect is you - yes YOU, because I know you will go there and make a loan - you get paid back! So, you are empowering a small business owner in some far-away land to make a better life for themselves through a loan, which you get paid back! Kiva's default rate on loans is less than 1%! That way, you can make another loan down the road! Over and over you can help someone improve their lives!

Beth and I think it is great! Click here to read about how the program works. Oh yeah, another great part is PayPal doesn't charge Kiva users any fees for making the loans!

We were online tonight browsing and made two loans. Our first loan provided the last $25 a woman in Ecuador was requesting to buy inventory for her store. We were one of 17 individuals from around the world who loaned money to help out the owner, Daysi Suárez. We picked her because we wanted to help someone complete their loan and because she seemed to have a good plan for the use of the money and demonstrated how it would help her business and her life. We feel good that we are able to help her move forward in life! Heck, I would have been okay donating her the money, it is just an added bonus to get it paid back!

The other loan we made is featured on the banner I added on the right side of my blog template. The loan is to Sok Seng Horn in Cambodia. He is going to be purchasing a new Tuk Tuk, which is like a motor bike taxi. We liked Sok because his income, combined with his wife's, is helping to support his children and his sisters. Also, while he is going to be purchasing a new Tuk Tuk, he is also going to be renting out his old Tuk Tuk, in effect doubling his income! When we made our loan (I keep wanting to type donation) five minutes ago, we were the initial lender. Now, SokSeng is 22% funded, including funding from some guy in Chandler!

So, join in on the fun and help make someones life better! A small loan out of your pocket now will help improve the lives of families throughout the world. And, once they repay the loan you can make another loan or put the money back in the bank.

Beth and I think it is a great way to save the world and ask you to join us =) Head to kiva.org now and make your first loan!