Saturday, October 4, 2014

Turn $100 into $1500

In 2007 some co-workers and I each kicked in $20 to Kiva so that we could support entrepreneurs in developing nations around the world.

How Kiva Works
1. We read personal business profiles like below and decided who we wanted to help. The entrepreneurs are searchable by region, country, gender & business. There are NGOs local to the individual entrepreneurs that vetted the businesses for Kiva.

2. Our $100 was then broken up into smaller amounts (micro-loans) and loaned to people like this...


3. Other Kiva investors also loaned money to these businesses and the loans were paid back monthly over the course of a year or so.

4. Those re-paid dollars went back into our account so we could loan the money out again. Our initial $100 has been loaned out to the tune of $1,475.

Here are the cumulative stats for the entrepreneurs that my co-workers and I have supported in the past 7 years:

As you can see, there's a default rate of 6.78% which is about the same as what American borrowers have experienced in the same time period.

If you've never tried Kiva, I highly encourage you to check it out. It's fun reading through the bios of the different entrepreneurs and is an easy way to help out.

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