Posts Tagged ‘microfinance’
Kiva.org in the Philippines
Kiva.org is a microfinancing site that started a couple of years ago and has already helped thousands of small entrepreneurs in developing countries all over the world lift themselves out of poverty by providing the extra little push that they need to establish their livelihoods. It differs from other microfinancing initiatives in that it actively matches would-be lenders with the actual entrepreneurs, who use it for varied business like fishing, transportation, vegetables, and handicrafts, among others. In the two years since it started, Kiva.org has experienced virtually zero default and delinquency rates.
A lender can extend loans of from as low as $25 up to the target loan amount, with repayments typically within a year. Lenders are presented a list of entrepreneurs, with information on their location, their area of business, and best of all, their stories. Kiva.org has helped families who were earning barely enough for food develop their businesses to yield enough not only for food but for education as well. In one example, a single mother who has been disqualified by traditional financial institutions turned to Kiva.org for capital and has since been able to develop her livelihood enough to support her two children.
In order to do this, Kiva.org partners with local institutions that help in administrative areas, as well as providing support and infrastructure for the people of that locality. There are partners in many African countries, as well as many parts of Asia, like Cambodia, Vietnam, and India. What I found missing when I was looking through the site was that there weren’t any partners in the Philippines! Last I checked, we were still among the poorest of the poor countries.
This entry’s to hoping that someone picks this up and initiates a Kiva.org partnership for the Philippines.
