Microfinancing is a concept that aims to provide financial services to the very poor, who often lack access to traditional banking services (typically loans).
If you like to do your bit to reduce poverty in the world through microfinancing, you can do so by joining Kiva.
Kiva is a non-profit website that allows you to lend as little as US$25 to a specific low-income entrepreneur across the globe. You choose who to lend to – whether it is a baker in Afghanistan, a goat herder in Uganda, a farmer in Peru, a restaurateur in Cambodia, or a tailor in Iraq.
The money you lent them will enable them to start or improve their business and help them get out of the poverty trap.
As they repay the loan, you get your money back and you can choose to either withdraw the money or lend it to someone else. As you recycle your capital into making more loans, the initial capital that you contribute has a multiplier effect towards changing other people’s lives.
If you have benefited from this website in one way or another, I would like to invite you to join my Make a Difference (MAD) team on Kiva where we can work together to alleviate poverty.
Once you’re a part of my team, you can choose to have a future loan on Kiva “count” towards our team’s impact. The loan is still yours, and repayments still come to you – but you can also choose to have the loan show up in our team’s collective portfolio, so our team’s overall impact will grow.
I’m sure many of us want to leave behind some form of legacy. You don’t need to be a millionaire to do so – you can start small by simply loaning out an amount as low as US$25 through Kiva. You can also do your part by telling other people about Kiva.