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Author | Topic: Let's micro Loan | |||||||||||||||||||||||
jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
In this season of giving, I hope you will consider joining KIVA.org.
Kiva? What's that? KIVA is a clearing house that helps make micro loans to small business all over the world, and when I say small, I mean small. KIVA uses the internet to connect lenders (often as little as $25.00) and borrowers. These are loans, not gifts, the money you lend gets repaid, and you can then withdraw it or direct it to some other project. You get to pick which project or projects you want to support and follow their progress. To learn more about how you can help, visit Kiva.org Is there any risk? Sure. There is always risk but their record of repayment has been exceptional. For information on the risks, look here. Edited by jar, : add risk overview. Edited by jar, : fix heading Immigration has been a problem Since 1607!
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jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
Micro-loans are one of our best options for trying to help folk improve their lives. Can any of you good folk help with this?
Immigration has been a problem Since 1607!
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CK Member (Idle past 4127 days) Posts: 3221 Joined: |
This is a really excellent way to help small businesspeople do..well a little business. I've just invested in a beauty salon.
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jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
Thank you sir.
Now who else can step forward? Immigration has been a problem Since 1607!
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cavediver Member (Idle past 3643 days) Posts: 4129 From: UK Joined: |
This is excellent - will definitely be investing. Always enjoyed playing in the emerging markets
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jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
I really appreciate your help. Yup, definitely emerging, so far below the radar that it is often over looked.
Little changes though can have big results. Immigration has been a problem Since 1607!
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Modulous Member Posts: 7801 From: Manchester, UK Joined: |
KIVA doesn't pay returns to lenders for its loans. That isn't a criticism, just a statement of fact. It took me a while of reading to understand how their business compares with bonds. The advantage of Kiva is that you get to see who the borrowers are, and what they'll use the money for and that 'intimacy' can certainly provide emotional impact.
I thought I'd have a look at other similar business models and see if anything else was going on in the microfinancing world. I found Micro Place. The first issue I had with it was that it is an eBay company - but I looked past that and investigated. Instead of giving money to the borrower via field agents, you give money to the micro-financing companies (via securities) who can then loan that money. Example: Oikocredit: You get a small interest, in this case it is 1.5% It is an exercise for the reader as to which method they prefer, and I've no idea if one can be said to be 'better'.
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jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
Another great possibility.
Let's see how many micro loans we can make folk. Immigration has been a problem Since 1607!
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obvious Child Member (Idle past 4115 days) Posts: 661 Joined: |
What's the percent that goes towards running the overall agency? Do they have a 990?
And I disagree that it is one of the best thing we can do for struggling nations, but that it is just one of many things we can do.
The End of Poverty by Jeff Sachs explains a wide number of things that can help the developing world. But the key lesson from him is that we cannot assume a one size fits all, that we must tailor aid packages and programs to each nation to fit its needs. Shock therapy and debt forgiveness will not be the cure for Africa as it was for Poland. How does it deal with nations that lack the necessary infrastructure and law frameworks? Or does it simply not even try in those areas? Because without the necessary infrastructure to allow a market to function, a micro loan is rather pointless. Edited by obvious Child, : No reason given.
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Modulous Member Posts: 7801 From: Manchester, UK Joined: |
8. When is microcredit not appropriate? "Microcredit may be inappropriate where conditions pose severe challenges to loan repayment. For example, populations that are geographically dispersed or have a high incidence of disease may not be suitable microfinance clients. In these cases, grants, infrastructure improvements or education and training programmes are more effective. For microcredit to be appropriate, the clients must have the capacity to repay the loan under the terms by which it is provided." Access to this page has been denied.
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jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
What's the percent that goes towards running the overall agency? Do they have a 990? None of the loan goes to Kiva.
And I disagree that it is one of the best thing we can do for struggling nations, but that it is just one of many things we can do. There was a reason I said one of and we. These are things that the individual can do and of course, it is not all that can be done. Another of my favorites is "Playpumps International".
The End of Poverty by Jeff Sachs explains a wide number of things that can help the developing world. But the key lesson from him is that we cannot assume a one size fits all, that we must tailor aid packages and programs to each nation to fit its needs. Shock therapy and debt forgiveness will not be the cure for Africa as it was for Poland. That is not a good enough reason to not try this.
How does it deal with nations that lack the necessary infrastructure and law frameworks? Or does it simply not even try in those areas? Because without the necessary infrastructure to allow a market to function, a micro loan is rather pointless. So you don't make the loan in that case. But remember, these are person to person transactions. Even in areas without the normal legal infrastructure it may be possible to make a micro loan. As with anything else, you start small and test the waters. If it succeeds you then make more such loans. Immigration has been a problem Since 1607!
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obvious Child Member (Idle past 4115 days) Posts: 661 Joined: |
quote: That isn't what I asked. I asked how much of the donation goes towards running Kiva. Non-profits for the most part require a certain percentage to operate. The rest goes towards the people and places they are trying to help. Some of these non-profits are better then others, such as Penny Arcade's Child's play which has a virtually unheard of 100%, and some non-profits largely exist to pay their CEOs.
quote: Agreed, however, it is a good reason to try other things first, particularly in Africa. As Modulous has cited, conditions may exist which would render Micro loans useless. Thus we should focus on a tailor made aid program to fix the conditions to allow micro loans to function.
quote: That's not what I'm worried about. Without things like passable roads and safe markets, the problems of a weak legal system are pretty minor. If they cannot even make the basics of their business work due to fundamental flaws in their physical infrastructure, we shouldn't, as you stated, make a loan.
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jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
That isn't what I asked. I asked how much of the donation goes towards running Kiva. Non-profits for the most part require a certain percentage to operate. The rest goes towards the people and places they are trying to help. Some of these non-profits are better then others, such as Penny Arcade's Child's play which has a virtually unheard of 100%, and some non-profits largely exist to pay their CEOs. I don't know how to make it any clearer. Zero percent of the money loaned goes to Kiva. Kiva is supported by donations specifically directed to supporting Kiva and unrelated to the loan streams. These are loans, not donations. As to the rest of your post... whatever. Immigration has been a problem Since 1607!
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obvious Child Member (Idle past 4115 days) Posts: 661 Joined: |
quote: Do you have a tax form for that? It should be a 990. http://www.kivafriends.org/index.php/topic,562.0.html That's all I can find but there's a error message when it opens. It appears I have massively overestimated the economics, political, business and legal knowledge of people here.
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jar Member (Idle past 393 days) Posts: 34026 From: Texas!! Joined: |
It appears I have massively overestimated the economics, political, business and legal knowledge of people here. That's fine. Enjoy. Immigration has been a problem Since 1607!
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