Kiva-Why I loaned Alice $25

November 17, 2009 · Posted in Commentary 

I made my first loan of $25 to an entrepreneur through Kiva in September, 2007.  Someone on an online forum talked about having lent money through Kiva.  Intrigued, I asked him for more information and received an invite to join Kiva through email.  Upon doing some research, I found that Kiva gave small loans to entrepreneurs in the developing world.  The overall delinquency rate on their loans is a little over 2%, which is not too bad. 

Kiva posts the profiles of entrepreneurs seeking financing.  Most entrepreneurs are looking for around $1,000.  I decided to take a chance and lent a female entrepreneur in Africa $25 towards her loan request, which is the minimum one can loan on Kiva.  The great thing about Kiva is you can use several criteria in choosing a person to loan money to.  I wanted my loan to have the most impact.  I decided to loan my money to a woman with children in Africa.  Women on the African continent have it rough and suffer a lot of discrimination and poverty.  My $25 financed a small portion of an $1,100 loan, with a term of 17 months.  In 10 months, the loan was repaid in full.  I have re-lent that original $25 a total of four times without losing a dime of it.

My third loan was just paid back in full today, so I wanted to find another person to loan my money to.  Searching for women in Africa, I found Alice, who is a widow with seven children.  Alice has run a provision store in Ghana for the last 10 years.  All seven of her children are in school and Alice wants all of them to be educated.  Illiteracy is a huge problem on the African continent.  The loan is being processed through Sinapi Aba Trust, which has loaned close to $3 million in the last two years with a 0% delinquency rate. They must be doing something right.

I am hoping that Alice continues to be successful in her endeavors and raises seven well educated children who will do their best to lift their country out of poverty.  My measley $25 loan will hopefully make an impact in Alice’s life.

Be Sociable, Share!


Leave a Reply

You must be logged in to post a comment.

Get Adobe Flash player