Loan Money to Small Business at Kiva

A unique way to support fledgling businesses internationally and feel better about the world is presented through Kiva. An unusual charity, Kiva extends loans to small, needy businesses throughout the world through its members and was recently made notorious by Oprah Winfrey.

The word “kiva” means “agreement” or “unity” in Swahili, which this California—based, non—profit organization successfully seeks to achieve through voluntary loans made online to small businesses. Lending your money to a business on Kiva does not yield a profit and cannot be considered a donation because the money is being repaid. Rather, it is a way for small businesses with little or no credit to raise the capital they need to make a living. The risk factor is minimal for the lender because the Kiva community currently enjoys a repayment rate of 99.74 percent.

If you want to feel good about helping international commerce without really spending a dime, consider lending money at Kiva. You simply select the business you want to help, designate a loan amount as little as $25, make the loan through the secure online payment system and you will receive journals outlining the progress of the business you loaned money to and charting your repayments. Once the loan is repaid, you can withdraw your funds from Kiva or lend them to another business in need.

The money you lend is transmitted to Kiva through PayPal and then Kiva Field Partners distribute and manage the money loaned to the entrepreneurs. The entrepreneurs do pay interest to Kiva and the Field Partners to keep this online lending service alive. Overall, this charitable organization has found a terrific way to meet a growing international need for revenue to further commerce through its navigable, secure website.