Friday, 13 April 2012

Of King Kiva

Occasionally you come by a site which really excites you. This happened to me last week. It's called Kiva.Kiva follows the principles of third world aid first popularised by Nobel Prize Winner Mohamed Yunus. Yunus claims that the way to help third world countries is by giving out small loans rather than handouts. Loans he claims encourage entrepreneurship and a business spirit which will lift people, communities and countries out of poverty. Handouts encourage dependency and achieve little except donor gratification.
Kiva is a great site.It allows you to lend as little as $25 to individuals dotted around the world all of whom want money for a business venture.Not only does this provide them with an opportunity to start or grow their business but it allows you to help out again once the money is repaid. And here's the rub. The repayment rate is an astonishing 98.90%. This is a rate the every high street bank in the West would be proud of I'm sure.
So rather than hand out a small amount of cash you'll never see again Kiva allows you to give it in the form of a loan and for the money to keep tumbling forward onto one project after another.Top stuff.

No comments:

Post a comment