Two days back PBS (PBS Frontline World ) aired a special program on KIVA. The program gave a first hand account of their working and also highlighted how people in African countries are getting benefit from the loans.

KIVA allows anyone to make small loans directly to entrepreneurs in developing countries. Kiva finds these projects that need funding through non-profits in the local area to help guarantee that the money will be used appropriately. A KIVA volunteer uploads photo and profile of the entrepreneur and this is seen by anyone on the website looking for funding. You can pay by credit card from any amount. You can track the project development on the website. The loan guarantee system is excellent, KIVA volunteer organizes a meeting of the entrepreneur and every one is from same community, so they need to approve whether a loan should be approved or not and as they guarantee the person its always guarantor’s responsibility to pay back if entrepreneur becomes defaulter. Amazingly the loan repayment is 100%!Over time, usually around 12 months, those who have loaned money are paid back in full and can reinvest the loan and also track the progress of how their loan is being used through journal updates on the site. And PayPal offers the actual online transaction service to Kiva free of charge.

KIVA also trains people to choose right business and provides training to entrepreneurs.

Simple process:

Step 1: Choose a business

The businesses on web site are always changing. They are being uploaded by microfinance partners around the world. You can find a new business on the home page or on the Businesses ‘In Need’ page.

Step 2: Make a loan

When you have selected a business, you can make a loan using your credit card (via PayPal). You can loan as little as $25 at a time. Checking out is easy and safe because of PayPal.

Step 3: Receive journals and payments

Periodically, you will hear back from the business you sponsor. Partner representatives (often loan officers) write directly to the website to keep you informed on the progress of the business. If you choose, you can receive these via email.

Step 4: Withdraw or re-loan
When your Kiva loan is repaid, you can choose to withdraw your funds or re-loan to a new business.

Here is a movie file from

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