Giving back has a ways been a priority to Fred Isler, a computer
programmer from Unionville, Virginia. But when he learned of a Website
that would let him fund entrepreneurial ventures in Africa, he realized
that charities weren't the only vehicle for sharing his wealth.
"With charities, you don't really know where your money
is going," says the 49-year-old Isler. "This is better than a
charity because you're able to help somebody directly."
Kiva.org, which launched in 2005, lets consumers lend a minimum of
$25 to their choice of prescreened entrepreneurs in developing
countries. Microfinance institutions partner with the San
Francisco-based company to identify the small business owners and
disburse the funds to the local entrepreneurs. Defaulting on the loans
is almost unheard of. With a default rate of only 0.14%, loans are
typically repaid within three to 18 months, and users of the site can
withdraw the money or lend it to another entrepreneur.
As of the end of March, nearly $26 million in loans have been
distributed through Kiva.org in 42 countries. Since last April, Isler
has loaned $5,775 to 229 different borrowers. So far, he's been
paid back $975 of that amount in monthly installments.
Through the site, consumers can see how much individual
entrepreneurs need in total, how much of that amount has already been
raised, and what the money will be used for. Consumers can also see the
repayment terms up front.
"Our philosophy is to create a transparent microlending
platform, say. Kiva.org spokeswoman Fiona Ramsey.
For more information, go to www.kiva.org.
Other resources to get you started
* The Hicrocredit Summit Campaign is the largest network of
institutions involved in microfinance and microenterprise development.
(www.microcreditsummit.org)
* The Crafts Center at CHF International is a global network
dedicated to supporting low-income artisans. (www.craftscenter.org)
* The Global Fund for Women has provided low-interest loans,
grants, and technical assistance since 1987.
(www.globalfundforwomen.org)
COPYRIGHT 2008 Earl G. Graves Publishing Co.,
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