Sunday, January 11, 2009

Kiva Rocks the World

Ever heard of Kiva before?

Ever heard of Micro Financing?

It's somewhat like charity, but where you get your money back.

Mohammad Yunus started the whole thing with Grameen bank and won the Nobel Prize for it.

The IDEA is simple:
You give a small loan to a poor person with a small idea (usual example: indian lady wanting to buy a sewing machine). That lady then repays the loan (without interest) using the income of the sewing machine, and can then support herself better. The lender keeps a database of the loan and repayment schedule, and if the lady doesn't pay back in time, she's not taken to the police, she's simply blacklisted to not receive any more money in the future.

The repayment rate is usually between 98-100%!!!!

These people take their loans seriously.

So what's Kiva? It's a website that takes this model to the next level, the INTERNET.

It lists thousands of loan seekers, and you can lend any of them using paypal! You get your money back over a certain time period.

Here's a video that tells the whole story:

A Fistful Of Dollars: The Story of a Loan from Kieran Ball on Vimeo.


sadia said...

kiva going online is fantastic!!!
simply brilliant.

Sebamboot said...

I think you wrote once about Insurance companies and how you think they are completly frauds.

I wrote you back then telling defending them.

Well .. I am inviting you to read my story .. a very real one and see for yourself how frauds they are.

Now I really beleive in your theory.

falantan said...

I made a few loans already it it feels great walla! bs I got a message from another lender from the US that she never saw someone lending from the middle-east before me :-/ fashla. bs I told her that most people here give directly to charities.

Garait your story! 7aramiya thnainathom! ilinsurance company o wekalat sayartech, chlab.

7aram tasketeen. balghe 3anhom tekfain.

Yara said...

What a great idea.. thank you so much for posting about it i never heard of it before, the video wont work but still im definitley doing it :)

sadia said...

lol...fashla indeed!

Smarties said...

v nice! 5osh fekra.. mashallah!
i'd love to make some loans!