Making Loans through Kiva to People in Developing Countries
@DeborahDiane (40843)
Laguna Woods, California
September 25, 2019 8:49pm CST
About a year ago or so, I wrote a post about how I had decided to give Kiva a try. This is an organization which enables you to make a $25 loan (or more, if you want) to a poor person in a developing country who will use the money to better the lives of themselves and their family.
Since then, I have made three loans:
A group of 5 women in Lesotho wanted to buy one stove for their five families to share, so they could cook without walking long distances to get fuel. They bought the stove and repaid the loan in full.
I then loaned the same $25 to a group of women in Senegal who wanted sewing equipment so they make clothing and other items to sell for income. They must be successful with their new business, because they also repaid the loan in full.
Now I have loaned the same $25 to a group of women in Guatemala who want to use their funds to buy belts and other items from local people who make these items, and they are starting a business reselling these items. I now feel confident that these women will eventually repay me, too. The picture above is of the group of women in Guatemala who applied for this loan.
In addition to the $25 I have loaned and re-loaned, I have also donated about $16 over the past year to Kiva to help them keep their business running, since they do not hold back for themselves any of the money which I lend.
So far, I have been very impressed with this worthwhile organization. I know that @JudyEv in Australia has also made loans through them. I hope her experience has been as good as mine!
If any of you have been wondering about Kiva, I highly recommend it as a way to help people around the world improve their lives ... all with $25 which you can loan over and over again!
18 people like this
15 responses
@LadyDuck (502148)
• Italy
26 Sep 19
I am really happy that you have been able to help people who really needed that money. What I cannot understand is why there are no organizations to bring things to those population. When we emptied the apartment of my mother there were plenty of things that we were ready to donate (two sewing machines, the stove, two refrigerators...), no one wanted them. The charities want MONEY, that is not really honest in my opinion. They could sell for a little money those thing and they would help many people.
6 people like this
@LadyDuck (502148)
• Italy
27 Sep 19
@DeborahDiane They send containers all the time to Africa, shipping is surely not the problem. They have electricity there, this is also not a problem. Of course collecting used items and sending them to Africa brings nothing in the pockets of the Administrators of charities, collecting money YES. I have heard how much they spend and how little money is re-distributed, another scandal!
4 people like this
@DeborahDiane (40843)
• Laguna Woods, California
27 Sep 19
@LadyDuck - Yes, that is a huge problem that the administrators of these charities take huge salaries, and very little money ends up helping the people who need it. That is why I like these loans through Kiva. The administration fee is separate and you know the full loan is actually going to the people ... and you get it back and can reloan it! I agree it would be helpful if appliances in good condition were sent to Africa ... especially those that are available from Europe, since it is so close!
3 people like this
@DeborahDiane (40843)
• Laguna Woods, California
26 Sep 19
@LadyDuck - You make a good point. I see so many things that get dumped, especially when people remodel an older home or apartment. These things could be sent to developing countries and make their lives much better. Maybe the shipping costs are too high, or the equipment is not always the kind that the people need (for example, maybe they often need sewing machines that do not require electricity). It would be interesting to know more about that.
4 people like this
@stringer321 (5682)
• Kiryat Ata, Israel
8 Oct 19
That is a good way to help. I just prefer to give directly to people around me, I leave recyclable cans and bottles near the super market so people can take them and use them for money. I sometimes give someone a big amount of cans for a little work, to help me sweep the floor and wash for 10 minutes.
2 people like this
@stringer321 (5682)
• Kiryat Ata, Israel
8 Oct 19
@DeborahDiane they can one day help us, they have life experience, who knows what the homeless people went through...
They can be good friends to talk with.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
8 Oct 19
@stringer321 - Yes, together people are always stronger.
@DeborahDiane (40843)
• Laguna Woods, California
8 Oct 19
@stringer321 - Yes, it is good to help the people around us, too. My husband and I volunteer at a local homeless shelter. It is important not to ignore the needs of those closest to us.
1 person likes this
@changjiangzhibin89 (17239)
• China
26 Sep 19
It is all in a good cause ! It is nice of you to make loan to people in their need ! A little goes a long way !
1 person likes this
@changjiangzhibin89 (17239)
• China
27 Sep 19
@DeborahDiane There are still lots of people that live in poverty in the world.The small amount of money may solve their problem.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
26 Sep 19
@changjiangzhibin89 - They put the small amounts of money together into larger sums, so that it really does help people. I was especially impressed by the five women who just wanted one stove to share among their five families. I was happy to know it would make all their lives easier.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
27 Sep 19
@changjiangzhibin89 - Yes, there are far too many people who live in poverty. If a $1000 or $2000 loan can help them start a business and improve the lives of their families, it is money well used.
1 person likes this
@crazyhorseladycx (39503)
• United States
26 Sep 19
dang, i reckon i missed that discussion durin' my 'no net' period. 'tis wonderful 't takes so lil to enhance the lives 'f others. i'm all fer anythin' that 'tis helpin' the poor make a better life fer 'emselves, families'n ultimately their communities.
1 person likes this
@crazyhorseladycx (39503)
• United States
29 Sep 19
@DeborahDiane most definitely so :) particularly the womenfolk'n those 'nderdeveloped countries.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
29 Sep 19
@crazyhorseladycx - Yes, I read decades ago that when you help women in underdeveloped countries, more of the money goes to help their family and their community. So far, all the funds I have loaned have gone to women who were trying to improve the lives of their families and community. I feel good about that.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
29 Sep 19
@crazyhorseladycx - Yes, I think this is a wonderful way to give a helping hand to other people. Making them a simple loan, which they could never get from a bank, in order to start a business or improve their lives, seems like such a worthwhile thing to do!
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
26 Sep 19
@just4him - I love the fact that I can use the same $25 donation over and over again to help others. So far, all the loans have been paid off. The donations I have also made to Kiva have been purely voluntary. I think it is a good organization.
1 person likes this
@just4him (323168)
• Green Bay, Wisconsin
27 Sep 19
@DeborahDiane That's wonderful it is.
1 person likes this
@porwest (112717)
• United States
11 Mar 22
Hmm. That is interesting actually. I may actually check that out if it is still around. I usually would frown against loaning money to the poor, since most in the U.S. are poor for reasons of their own design and would likely never pay the money back.
But people in other countries in similar situations have a very different attitude when it comes to money, opportunity, and don't have the same mentality people here do that they are owed something just because you have something they do not.
I like the idea of it, and I am glad you are able to help people truly in need and also get your money back to do it over and over again.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
11 Mar 22
@porwest - I have really liked Kiva. I have made about half a dozen loans now, since writing this article. The people make their payments. Whenever my account gets $15 to $20 in repayments, I add a little and loan another $25 to someone else. The other day, I had three repayments from different loans, so it really popped up the amount in my account. The payments they make are small, but they add up. I enjoy feeling that I am helping people who are really struggling and just need a little investment to become self-sufficient. I have now helped people all over the world.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
12 Mar 22
@porwest - Yes, it is a site, and I love feeling that I am helping people directly, rather than giving to a big organization like the Red Cross or Salvation Army and just assuming they do something good with the money (although I sometimes donate to them, especially during an emergency).
With Kiva, I know exactly who I am helping, and have the ability to choose which person to help. The $25 you lend is pooled with money from 50 or 100 other lenders, so they get the amount they need. I never loan more than $25, but sometimes I add a little to the repayments I received, so I have several active loans at a time. The repayments are usually in tiny amounts of 50 cents or a dollar, but they gradually repay. Here is a link to the site:
You can look at the site and see some of the people who are hoping to be loaned money, and how much money has already been pledged to their loans.
1 person likes this
@porwest (112717)
• United States
11 Mar 22
@DeborahDiane So, I am taking it the site is still around—assuming it's a site. I may have a look. Thank you.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
17 Mar 22
@kixsh101 - I feel it is a worthwhile organization. In addition, you can choose to help people in your own country, or in countries around the world!
@psanasangma (7910)
• India
28 Sep 19
This is good source of help for the needy people. You are doing good work. Are you lending them with interest ?
In my place group of men or women (10-15 members) make group which is popularly known as Self Help Group and they do activities among the groups and earn sufficient amounts are lend by own member with small interest ..
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
29 Sep 19
@psanasangma - I did not think that the people were charged interest. However, I have been loaning out $25 and now I have a $26 credit which I can re-loan, so it appears that Kiva does charge a small amount of interest. When it accumulates, I will loan that out, too.
@BelleStarr (61463)
• United States
27 Sep 19
I am going to look into this when I get back on Monday, I am very interested,
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
27 Sep 19
@BelleStarr - I am glad to let other people know about this organization. I feel that it is helping people around the world, and doing it with donors who do not have to spend a fortune in order to make a difference.
1 person likes this
@Alexandoy (65302)
• Cainta, Philippines
26 Sep 19
I don't understand the loan. Kiva advances the money to the beneficiary and you pay later?
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
26 Sep 19
@Alexandoy - No. Here is how it works. Someone applies to Kiva for a loan to start a small business or improve their life in some way. They may ask for $1000. Then, Kiva promotes the request on their website and, hopefully, 40 people will agree to loan $25 each ... so the total of $1000 is reached. Then, the $1000 is given to the person who requested the loan. However, they are expected to make repayments, and Kiva has a 96% success rate in having the money returned. Then, they let the people who loaned out the money know that the money has been returned and they now have $25 each that they can reloan to another group. The people who are making the loans go back on the site and choose another person or group to loan the money to. This keeps happening, and the original $25 you loaned gets reloaned over and over again. That way, you can help many, many people with the same $25. It is a pretty amazing idea!
@DeborahDiane (40843)
• Laguna Woods, California
11 Oct 19
@sol_cee - I enjoy doing it. It is fun to look through the different choices and picking a person or group I think I can help the most with my loan.
@DeborahDiane (40843)
• Laguna Woods, California
29 Sep 19
@DianneN - Oh, yes. I have a number of other charities to which I also donate. However, I like this because I know exactly where the money is going and it seems like a unique way to help people start small businesses and find ways to improve their own lives. Apparently, most of these small businesses are successfully, because nearly all the loans get repaid. If I ever was not repaid, I would not worry about it. It would be no worse than donating to a regular charity and not getting the money back ... which, of course, I never do!
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
26 Sep 19
@JudyEv - I am glad to hear that you are also getting repayments. I pretty much ignored what was going on with my loans for a long time, because of our move into the hotel and everything else that was going on. Then, I got a notice that I had over $26 available to loan again, so I did it yesterday.
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
9 Oct 19
@paigea - I have really enjoyed being part of the Kiva community, loaning and re-loaning the money every few months. I hope I continue to help women around the world for years!
1 person likes this
@RasmaSandra (97912)
• Daytona Beach, Florida
26 Sep 19
That is wonderful to hear and you have been such a great help to them all
1 person likes this
@DeborahDiane (40843)
• Laguna Woods, California
26 Sep 19
@RasmaSandra - I love the fact that, after I made the first loan, I have been able to reloan the same money over and over again and help more and more people. It is a wonderful way to make it possible for people to start small home businesses and help themselves.
1 person likes this
