Kiva.org would have to be the most incredible social organisations I have ever come across. Its aim is to alleviate poverty in developing nations and improve the standard of life – without collecting a cent in donations. Kiva understands donated money is an extremely short term solution, lending money to finance the growth of a small business in Uganda or Ghana has a multiplying affect. A $25 loan to finance the growth of a small shop, will return $100 to the owner and their family, a $25 donation is precisely that.
Kiva lends money (aka Microfinance) to entrepreneurs and small business in the worlds poorest nations.
Before I got involved I thought “Surely a poor person couldn’t pay back a loan!”. In actual fact its embarrassing how much lower the default rate is in 3rd world countries over Western countries. The stats in Australia are hard to find, but form a few Google sources and from a friend of mine in banking, the figure is around 9% for business and credit card loans. This doesn’t include late payments. I have made 5 loans, all have been repaid, and all money lent again.
The average default rate for people in Tonga, Uganda etc. 1.9%. AMAZING! of $108 Million loaned, nearly every dollar was repaid, in full, on time, no late payments. The result, $108 Million loaned has increased local economies commerce and standard of life by many hundreds of Millions of dollars, its the multiplying effect.
Please join up, research and find entrepreneurs in industries and activities interesting to you, loan $25 or more and hear first hand from their diary entries, how your money has been invested. Over time as you receive your money back, re-lend it, or have it transferred back to your bank account.
I have started a group called b2cloud (http://bit.ly/91CrMg), please feel free to lend with us, or setup your own account (kiva.org). Either way, you are helping battle poverty and improving the standard of life in developing nation.
They will eat for a lifetime, cause your helping them fish!
Thanks for your time,