asian new zealand IT fighting loan sharks in poor countries?

, posted: 12-Feb-2007 14:57

It's a non-profit version of (although it seems started first). Basically people can loan money to other people without charging interest, mainly to start business although some borrow for better standard of living (e.g.: healthier house/hutt). Apparently, these poor people will have to pay 30%-300% interest borrowing from for-profit lenders (wow! talking about exploiting the poor!).

This is loan, not donation, so lender can expect to get 100% of their money back, and most of them did. claimed to have 100% rate of repayment (means that no body has fraud the system, yet?). At the moment it is funded through donation from big companies (Microsoft, Google, Paypal), but Kiva aimed to be self-funded in the future, by charging small fees to both borrowers and lenders. Transaction can be done using Paypal with no transaction fee. The highest loan that I've found so far was USD$2000 (many of which have been paid back in full). The smallest amount people can lend using Paypal is USD$25.

At the moment, the lenders are generally from wealthy countries like U.S., and the borrowers are from poor countries like Afghanistan. But, I don't see why we shouldn't have this sort of service in NZ, just because NZ isn't a poor country. It could be a good way to raise fund for non-profit cause in NZ.

I hope to see in the future is the borrowers becoming lenders as their lives are improved. Kind of like that movie 'pay it forward'.

Afterall, it's about giving other people chance to better their lives.

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Comment by weblordpepe, on 13-Feb-2007 19:42

A very logical approach. Someone should tell the save-the-chrildren chick who came to my door and failed to scam $30 a month out of me. Lending money is a much better solution to get people up & running because it doesnt hurt the lender in any way, yet a loan can be a life-line to some poor dude provided its spent on good things and not crack.

Comment by Steve, on 1-Nov-2007 23:39

Hi, I thought you'd be interested to see how we are using Kiva to help fund a new business each day. Kind of a unique approach. It all began with the idea, "Can business be used for good?" I'd love for you to come and see an entirely new approach to helping people through business. Our blog helps to financially support and fund a small business in a developing country, each and every day. In return for this all we ask is for people, just like you, to donate a business idea that we post. Those business ideas are made available for free on the site to help spark the imagination of budding entrepreneurs. By donating an idea you can help to change a life. Providing a link and doing a review of the site would be nice but I'd like to invite you to take five minutes out of your busy day and donate a business idea to the site. Your business idea will directly help fund a small business in need at no cost to you. When your idea is published you'll get a link back to any website you want plus you'll get to see the picture of the exact person you helped through the donation of your business idea. So don't miss seeing that, subscribe to our free RSS feed or daily email while you are on the site. I'd like to leave you with a big virtual hug as a thank you for your time and hopefully your donation of a business idea. Steve Site Link:

Comment by Bogdan Bilyk, on 1-Dec-2008 10:49

Sirs, I received a loan offer from KIVA LOAN FIRM" < They offered to lend me $50 million to make a movie for a script I wrote. Here is a copy of the last email I received from them when I questioned their legitimacy about making the loan to me. REF: NG-LRC/7430TYS/03/LN-NGR SSL: 03/26/0051 GOVERNMENT ACCREDITED LICENSED! DIAMOND LENDING INC IS REGISTERED UNDER THE DATA PROTECTION ACT 1967 HAVE: Registration (Z770638X). Plot 102, Garki phase 2, Maitama, Abuja Nigeria. Tel: +234-703-578-9370. Hello, Thank you very much for your co-operate ideal.i have earlier sent you a mail befor i recieved your mail.well first of all i have to explain the insurance charge fee. 1.The insurance as you know covers a gurranty for a huge some of money.because it has become a Imperative of constant occurance in the lending firm,that after a borrower must have succided in having his loan trasfered to his or her bank account,he or she might not be able to get to the agreement of the terms and conditions,so that is were the insurance can help in this case.. So the loan must be insured incase of lost,death or any case that might come up in this transaction 2.Validity of my company.This Company is a registered company under a stipulate law,the company has it ethics and principals which cannot be violated by any legit can find out more of my company in the company web sit WWW.KIVA.ORG.I belive you will have to see cases that is more than your demand that my company has lately handled without delay of skeptical reasons. 3.Transfer of the loan..You will have to provide on how you want the loan to be tranferd to you.but i will advice that you will have to open a domicillary account which is most preferable in this case, But you have a right to chose any bank transfer of your chioce. Finaly,I belive you are not naive about insurance in the business systerm of any country.because insurance help in networking between lost and death.but we dont pray for that. PLease get back to me as soon as possible so that we can start the immediate update of the documetation of the transfer you will prefer. Thanks. Mrs Kiva-Sylivia. MD/CEO/KIVA LOAN FIRM WWW.KIVA.ORG Is this for real or is it just another Nigerian scam?

Comment by Elizabeth, on 25-Dec-2008 05:12

That letter is definitely some sort of scam but is not. My daughter has been to villages in Senegal where the loans are being put to good use, and being monitored by reputable NGOs to make sure repayments are on time and in full.

Comment by John, on 21-Jul-2010 01:06

You could check, if you were so inclined, what the interest rates being charged actually are. The information is clearly listed for each lender on Kiva's website. (The average is a little over 30%) No one is lending at anywhere near 300%. That is just rampant misinformation.

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