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When was the last time you donated a dollar to help someone
in need time and again? Oh! you are confusing right, let’s take an example of
books; one book can be read by millions of people which give some benefit,
knowledge etc. if we buy one book for reading and then after some time we get
rid of it, we will kick away that and looking for something new or we will use
to give the same book to another person to get benefit. The concept of reusing
the same thing again and again which give benefit to us as well to other people
also by investing small amount of money is tremendous. According to this
concept, Imagine if there is way that if we donate small amount of money to
grow someone’s business and after that we get the payment so we can donate the
same money to someone else, It’s a marvellous idea right? I was totally shocked
when I came to know that there is an organization which helps people
financially because there are billions of people who wanted to start their
business by some amount but they can’t due to some circumstances or else they
don’t have access to the local banks from where they borrow some loan.

Yes, there is an organization which plays the same concept. KIVA
is one of the world famous organizations found in 2005 based in Sanfransisco.
Main mission of kiva is to help and connect needy people through lenders to
reduce poverty. It is an international non-profit organization so 100% of
lender’s money goes to borrower. There are around 2.6 million borrowers and 1.7
million lenders using KIVA to send loans and to borrow loan, the payment
rate is about 96.9%. Actually in this organization people don’t give donations
they give loan like borrower has to repay the lender also, but not necessary. This organization is based upon
three participants:

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1.    
LENDERS:

Lenders are those who lend money to help someone with the expectation
that they will get back the payment.

2.    
KIVA:

It is an organization by which lenders lends money to the borrowers.

3.    
BORROWERS:

Borrowers are those who take money from lenders for some need and then
paid back to them.

There
are multiple categories of borrowers; women, men, agriculture, education,
health, single parents, refugee, food and many other. So, we can choose what type of loan we
want to make or what is important to us. Each lender has to pay only $25 or
more if he wants to. The procedure that how kiva works is totally simple:

 

 

HOW IT WORKS

Ø  Borrower applies for a loan.

Ø  Loan goes through the underwriting
and approval process (where partner loans are facilitated by local nonprofits
institutes and organizations).

Ø  Loan disbursal period:

v Loan is posted in KIVA for the lenders to lend.

ü  Fundraising period (where lender
lends $25 or more).

ü  Fundraising complete.

Ø  Borrower repays the loan.

Ø  Lender use repayments to fund new
loan, donate or withdraw.

 

Now a question rises that if KIVA is a
non-profit organization then how KIVA cover it cost? KIVA cover it cost by
optional donation; like when lender lends money to the borrower so during
fundraising period additional loan is donated to KIVA by KIVA lenders with each
and every loan, More than two-third part of their cost is covered by KIVA
lenders and rest of the cost is covered by the grants and sponsors. Anyone can
donate KIVA to grow their operating process and business as well. The main
objective of KIVA is to help needy people who want some amount to grow their
business or to start their business  but
they can not able to borrow loan from the local banks because they don’t have
access to it and even don’t able to pay interest also. So, KIVA helps them to
do so; without any interest or with out any additional charges. But on the
other side KIVA declared straight forward about the risk of lending money to
KIVA, KIVA due delligience does not gurrantee that the lender wil get the
payment back. KIVA has been awarded for effectiveness
and efficiency form Global Impact Award
(Google), Charity Navigator, The Wall Street Journal.

 There
are many people live far from city, take one for an example like a farmer; his
income swings with the seasons so he need a loan for his fertilizers and he
will only able to repay it once he grow up his harvest, or having another
example of a student he got good grades in his high school but younger siblings
school fees too but the parents are so poor and not able to pay school fees and
decided to sacrifice future of rest of the children. So, he need a loan for to
pay fees and he will only able to pay it back when he will graduate and doing
job. Borrowing a small loan from local banks is too expensive because they
charge a higher insterest also, most of the people especially those who live in
villages far from city so it would be difficult to to cover a long distance.
When nobody is going to help them so, this is where KIVA step in by helping
these kinds of people by lending a loan from lenders to borrower without any
interest.

I really appreciate an outstanding  work and a concept of KIVA; when you lend you
get a good chance  to get that money back
and when you do get back you can lend it again and again even you are fully
repaid or not, you are participated in a grand experiment that determines what
works and what doesn’t. Why don’t i use KIVA to help people, why don’t you help
people by lending same amount and others dreams true. Automatically by
conneting other people around whole over the world you revolutionized that how
financial services real people needs.

·       With you KIVA learns
about the creative solutions about the tough challenges.

·      
With you KIVA will try to lend new types of loans for a new
types of borrowers.

·       With you KIVA can
take more risks to make more amazing things happen because this oraganaization
is not banks, KIVA gets alots of ideas of life changing solutions.

If we cannot
then who will? Be a part of KIVA by visiting such an awesome organization.

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