Kiva - Team Anandtech!

[AreaCode707]

How many of you use Kiva for microlending? We started an Anandtech team in 2008 and it's about time we promote it - we need some new members!

https://www.kiva.org/team/anandtech

If you don't know, Kiva is a site where you can lend as little as $25 to entrepreneurs in third world countries (or business hopefuls in disadvantaged areas in first world countries.) Often just a very little capital (by our standards) is all it takes to transform and open doors to success for hard-working folks.

Personally, I like to loan to people who are raising goats. Goats are awesome! We are the internet, we love goats, right?

https://www.kiva.org/lend/1011873
https://www.kiva.org/lend/1010443
https://www.kiva.org/lend/1001804
https://www.kiva.org/lend/1012522

Join Team Anandtech and lend through Kiva. Make the goats happy.

 

[Bird222]

What kind of returns do you get?

 

[AreaCode707]

What kind of returns do you get?

https://www.kiva.org/about/how/even-more

6. Borrowers repay their loans

Field Partners collect repayments from borrowers and any interest they charge to help cover their operating expenses. 80% of the partners we work with are non-profits that simply charge interest to cover their overhead. Kiva does not charge any interest to its Field Partners and does not provide interest to lenders. Kiva also gives Field Partners the option to cover currency losses. Learn more >>

To minimize the expense of wire transfers, Kiva uses a net billing system. For any given month, we subtract the amount of Field Partner repayments from the amount of loans made by Kiva lenders. We only ask our partners to wire payments us the difference.

It's not an investment strategy to rival your 401k, that's for sure. However by funding folks that are actively engaged in the economic health of their communities, building their own businesses, you can do a lot of good in the world.

 

[radhak]

Why do you need a group to do this? What purpose does that serve?

We (as a family) have around $400 out on loan on Kiva at any time (when a loan is repaid, we re-use it for somebody else). I provide the funds, my girls decide to whom it goes. I only mandate that they choose based on how dire the recipient's situation is, and how well they'd use it.

 

[AreaCode707]

Why do you need a group to do this? What purpose does that serve?

We (as a family) have around $400 out on loan on Kiva at any time (when a loan is repaid, we re-use it for somebody else). I provide the funds, my girls decide to whom it goes. I only mandate that they choose based on how dire the recipient's situation is, and how well they'd use it.

I'm already involved in lending, just thought I'd do a promo and see if we could get some new blood. You never know who's never even heard of Kiva who would think it's neat and want to get involved.

I LOVE that you have your kids involved! It's a great way to help them develop empathy, global perspective and an appreciation for all they have. I've given Kiva gift certificates as gifts for several different friends and family for Christmas, especially the younger ones.

 

[radhak]

Thanks.

And that's a neat thought - to promote it here, because it's an unusual way of doing good : lending money instead of giving away money; and many people have not heard of it.

I found that my girls were fascinated by the fact that poor people, living half a globe away, have always kept their word and returned their loan, despite the fact that there is no reasonable pressure on them to do so. When we began a few years ago, both of them, not yet teens, had said "you are losing your money. nobody's gonna return it", but were pleasantly surprised later.

As a great return, I see them becoming more honest themselves, even when nobody's looking !

 

[RearAdmiral]

I've been on Kiva for years, give it plenty of times for gifts...always a super positive response vs. a donation to the human fund that vanishes. It is pretty awesome to hear updates on where your money and gifts are being utilized.

 

[AreaCode707]

Thanks.

And that's a neat thought - to promote it here, because it's an unusual way of doing good : lending money instead of giving away money; and many people have not heard of it.

I found that my girls were fascinated by the fact that poor people, living half a globe away, have always kept their word and returned their loan, despite the fact that there is no reasonable pressure on them to do so. When we began a few years ago, both of them, not yet teens, had said "you are losing your money. nobody's gonna return it", but were pleasantly surprised later.

As a great return, I see them becoming more honest themselves, even when nobody's looking !

Wow, so the return on your investment is that your children have more faith in the goodness of people. That's neat.

 

[isekii]

do you pick and choose who you give it to?

 

[Hoober]

But you don't collect interest on the loan?

 

[RearAdmiral]

do you pick and choose who you give it to?

Yes. There's a ton of choices depending on where you would like your money to go.

 

[AreaCode707]

do you pick and choose who you give it to?

Yep! You can read about the individuals you loan to, know their family situation, how they intend to use their loan, see a photo, know the charitable organization managing the loan and what their delinquency rates are, etc.
For example:
https://www.kiva.org/lend/1013165

You can also search for people you want to lend to by country, gender, industry, whether you're lending to a group or individual, if you want to focus on a particular type of need like disaster recovery or conflict zones, if you want to loan through a particular organization, etc.
See all the lending opportunities that are currently in fundraising here: https://www.kiva.org/lend

I honestly just like reading through them because it provides another lens on the world. Somewhere out there is someone who is trying to come up with a few hundred dollars because owning two cows instead of one materially changes the nutritional balance of her family. That is so far away from my experience of the world, but somehow it seems to me important that I realize those types of situations are a reality of life for millions, if not billions, of people.

 

[AreaCode707]

But you don't collect interest on the loan?

No, Kiva does not charge or pay out interest.

https://www.kiva.org/about/how/even-more

6. Borrowers repay their loans

Field Partners collect repayments from borrowers and any interest they charge to help cover their operating expenses. 80% of the partners we work with are non-profits that simply charge interest to cover their overhead. Kiva does not charge any interest to its Field Partners and does not provide interest to lenders. Kiva also gives Field Partners the option to cover currency losses. Learn more >>

To minimize the expense of wire transfers, Kiva uses a net billing system. For any given month, we subtract the amount of Field Partner repayments from the amount of loans made by Kiva lenders. We only ask our partners to wire payments us the difference.