Kiva Loans

I am an international financier. I've been reluctant to write about this because there are problems with my kind of banking. No, I don't add unwanted charges like Bank of America or break legs for late payments like the boys on the corner. I make microloans through www.kiva.org. I've been doing this since shortly after Christmas in 2008 when I saw my cousin give kiva loans as gifts. I've loaned $1,700 in that time in $25 chunks. Lest you start thinking good thoughts about me, a lot of that sum is simply reinvestment of paid back loans. Of my 68 loans, one ended in default (I lost $2.94!), 47 were paid back in full, and 20 are currently paying back. I'll be making three more loans later today.

Kiva along with Heifer International and the Mercy Corps are my international development charities. Heifer funds agricultural programs around the world while the Mercy Corps mixes emergency relief with development projects. With Kiva I get to loan money to a real individual or group almost anywhere in the world. Kiva provides all sorts of information worthy of a real banking operation plus the pictures and stories of people seeking the loans. Right now I have money in El Salvador, Tajikistan, Azerbaijan, Uganda, Togo, Kenya, Afghanistan, Cambodia, Armenia, Pakistan, Mongolia, Palestine, The Philippines and Lebanon. I'm surprisingly low on loans to South America right now, but that has been a major focus throughout the years. My two loans to Americans helped a writer buy a computer and a farrier fit out a truck to shoe horses. The main focus of my loans has been on agriculture-people wanting a loan to buy seed, or chickens, pigs, and cattle, but I have loaned money to someone trying to buy a taxicab, stock a convenience store, buy novelties and make native crafts. Most of my loans pay back in under 15 months so that the money can be turned to a new use quickly.

I really enjoy doing this, and, as you know, I usually tell you that what I like is something you should try. Microloans are not without controversy, however. You hear stories that in some countries men force their wives to apply for loans and then take the money for themselves. Since microloans are often risky, interest rates tend to be higher than the norm for a given country thus opening the process up to charges of gouging the poor. Another problem is that the loan process itself is part of the inexorable and homogenizing process of globalization. The Kiva organization works hard to overcome these problems. They have checkers making sure the money gets to where it belongs and you can often read updates on your loans from these people. Information about the lending agencies is easily available at the Kiva site so you can refuse to loan to an agency that charges steep interest rates. Can't beat the charge that I'm spreading capitalism, however, but I'm not sure there is any better way to lift people's standard of living. Just thought I'd mention Kiva at this season of the year (and Heifer and Mercy Corps also). I'm not exactly brimming with Christmas spirit this year, but helping others help themselves is always a good thing at any season.