Originally Posted by
oliver2002
The donation is not mandatory, if you click on the amount you can dial it down to 0.
What annoys me the most is that they happily pass on the risk of default, but don't share the profits they make and ding you for 'donations' to Kiva on top. The recepients of the loan also pay interest for the loan to the local agency, which is shared by Kiva too.
I'd not be in favor of no interest loans, believing the borrower must have skin in the game. The local micro lender also has expenses - offices, staff, servicing the loan and often providing technical assistance. Often enough servicing the loan and providing technical support require a staff use bike or moto to go out into remote and rural areas to deal with the borrower.
And Kiva itself, as a loan aggregator with costs including marketing, loans processing and administrative costs vetting and working with the US sponsors, local lenders and regulators in loco. TANSTAAFL. The alternative is no micro loans for the entrepreneur on the ground who will be laughed out of a normal bank and have to resort to usurious and often criminally associated lenders.
I don't object to supporting these costs. If someone objects to supporting Kiva, as you mention it's pretty easy to opt out. And over the years, as I posted recently,
"In my personal experience, with $28,405 lent in total in 1,065 loans, I've had three loans go belly up - and those were partially repaid.
Given most loans are $25.00 per lender, I reckon I'm out of ~$50.00 over my tenure with Kiva. I'm sure I've spent $50 less wisely."