Monday, May 21, 2007

Kiva's one-time loans with interest

So Kiva, the pioneer on-line global people-to-people microlending movement, will finally pay interest on loans made.

Now that I got you interested, it's not exactly Kiva that will pay interest, but a supporter of Kiva to the first 200 lenders.

One of my favorite blogs is the Personal Finance Advice blog. As a personal initiative they decided to promote lending through Kiva by offering to pay an interest of $5 on $100 lent. This is equivalent to the exisiting savings interest rate.

I've lent on Kiva and on the more commercial Prosper. Both help people in need, but with Prosper you can earn an interest. While Kiva is focused on microlending to the developing world, Prosper focuses on the needy in the U.S. Wherever you lend, you are helping.

In any case, PFA's offer of a $5 interest has encouraged me to add to my existing loan portfolio at Kiva. It ain't much, but it gives me a good night's sleep. I have high hopes for people-to-people lending and assistance. I think we can use capitalism's instruments to turn globalization and neoliberalism on its head.

To meet PFA's requirements, I made loans to:

Héctor Conrado Rascon Ramos in Mexico for his store. He is recovering from a heart attack;

Zainab Harding in Sierra Leone for her grocery store;

Taleh Rahmanov, an Internally Displace Person from the Armenian-occupied Khojavand region of Azerbaijan, for computers for his Game café; and,

Aigatupu Saolotoga in Samoa for her pancake & snacks business, as well as for the repair of her house.

Loans were geographically distributed, made to both men and women, and were for entrepreneurial activities.

Everyone deserves a chance.

2 comments:

Anonymous said...

I disagree that lending is helping. If you want to help, give them the money.

livingplanet said...

thanks for the comment anonymous. giving money is also one way, which i support. read my earlier articles on direct cash transfer and basic income guarantee. best.