Using Kiva to manufacture spend
#46
FlyerTalk Evangelist
Join Date: Dec 2003
Location: Benicia, California, USA
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#47
Join Date: Oct 2012
Location: 5280/8150
Programs: Flying and sleeping
Posts: 341
Some of the comments in this thread remind me that there are some very paranoid and very cynical people in the world.
I, for one, will continue reaching out my hand to help people despite the minuscule chance that it may get chopped off.
I, for one, will continue reaching out my hand to help people despite the minuscule chance that it may get chopped off.
#48
Join Date: Jan 2008
Location: LAS
Programs: DL PM, UA PS, Hyatt Globalist, Marriott Titanium
Posts: 4,904
As someone who has actually visited multiple micro-lending institutions in rural areas of developing countries, I trust small amounts of loans ($25, $50, $75) with them through Kiva.
#50
Join Date: Aug 2012
Location: MKE
Posts: 56
I consider giving small amounts ($25-50) to a number of different people in developing countries to be nearly the least I can do to help those not as lucky as I am. I am a bit disheartened by some of the cynicism of this thread.
I aim to keep a fixed amount in Kiva, cycling funds to bump my spend a little. That amount only increases if I think I can absorb a total loss of the funds, even if that's basically never going to happen. Spread your risk by country, lender and type of project and it's a low risk activity.
I aim to keep a fixed amount in Kiva, cycling funds to bump my spend a little. That amount only increases if I think I can absorb a total loss of the funds, even if that's basically never going to happen. Spread your risk by country, lender and type of project and it's a low risk activity.
#51
Join Date: Jan 2009
Location: LAX
Posts: 670
Anyone care to elaborate on this? I'm rather confused.
#52
Join Date: Dec 2008
Location: PHL, NYC, DC
Posts: 9,708
Even though Kiva is a lending/payback program, one should treat it as a charity....... Donate something that you are comfortable with the intention of helping someone in need.......
If you are serious with getting something in return and repayments etc, I highly suggest bonds/fixed deposit.
If you are serious with getting something in return and repayments etc, I highly suggest bonds/fixed deposit.
#53
Join Date: Mar 2010
Location: mountains of western NC
Programs: Life, Love and Laughter
Posts: 8,537
Kiva works with micro-lending organizations which in turn loan money to individual (or group) borrowers. Kiva does not charge interest to these micro-lending organizations. But the micro-lending organizations do charge interest to the borrowers.
It's important to understand that the costs involved in running a micro-lending organization are very high. For example many of the borrowers live in remote areas where communications, roads and other infrastructure are very poor. Doing due diligence on a third world borrower is a complex task. Also, most of the micro-lending organization provide many, many other services to help the borrowers in addition to providing capital.
Here are a couple articles which provide more explanation:
http://fellowsblog.kiva.org/fellowsb...misconceptions
http://www.kiva.org/help/interestRateComparison
It's important to understand that the costs involved in running a micro-lending organization are very high. For example many of the borrowers live in remote areas where communications, roads and other infrastructure are very poor. Doing due diligence on a third world borrower is a complex task. Also, most of the micro-lending organization provide many, many other services to help the borrowers in addition to providing capital.
Here are a couple articles which provide more explanation:
http://fellowsblog.kiva.org/fellowsb...misconceptions
http://www.kiva.org/help/interestRateComparison
#54
Join Date: Jan 2009
Location: LAX
Posts: 670
Kiva works with micro-lending organizations which in turn loan money to individual (or group) borrowers. Kiva does not charge interest to these micro-lending organizations. But the micro-lending organizations do charge interest to the borrowers.
It's important to understand that the costs involved in running a micro-lending organization are very high. For example many of the borrowers live in remote areas where communications, roads and other infrastructure are very poor. Doing due diligence on a third world borrower is a complex task. Also, most of the micro-lending organization provide many, many other services to help the borrowers in addition to providing capital.
Here are a couple articles which provide more explanation:
http://fellowsblog.kiva.org/fellowsb...misconceptions
http://www.kiva.org/help/interestRateComparison
It's important to understand that the costs involved in running a micro-lending organization are very high. For example many of the borrowers live in remote areas where communications, roads and other infrastructure are very poor. Doing due diligence on a third world borrower is a complex task. Also, most of the micro-lending organization provide many, many other services to help the borrowers in addition to providing capital.
Here are a couple articles which provide more explanation:
http://fellowsblog.kiva.org/fellowsb...misconceptions
http://www.kiva.org/help/interestRateComparison
#55
Join Date: Aug 2011
Location: Idaho
Programs: US Airways, Silver United, Gold Hilton, Platinum Marriott, Gold SPG
Posts: 749
Another place to help less fortunate and to increase spend:
https://www.zidisha.org/
What are your thought FTs?
https://www.zidisha.org/
What are your thought FTs?
#56
FlyerTalk Evangelist
Join Date: Dec 2003
Location: Benicia, California, USA
Programs: AA PLT,AS,UA PP,J6,FB,EY,LH,SQ,HH Dmd,Hyatt Glbl,Marriott Plat,IHG Plat,Accor Gold
Posts: 10,820
Kiva works with micro-lending organizations which in turn loan money to individual (or group) borrowers. Kiva does not charge interest to these micro-lending organizations. But the micro-lending organizations do charge interest to the borrowers.
It's important to understand that the costs involved in running a micro-lending organization are very high. For example many of the borrowers live in remote areas where communications, roads and other infrastructure are very poor. Doing due diligence on a third world borrower is a complex task. Also, most of the micro-lending organization provide many, many other services to help the borrowers in addition to providing capital.
Here are a couple articles which provide more explanation:
http://fellowsblog.kiva.org/fellowsb...misconceptions
http://www.kiva.org/help/interestRateComparison
It's important to understand that the costs involved in running a micro-lending organization are very high. For example many of the borrowers live in remote areas where communications, roads and other infrastructure are very poor. Doing due diligence on a third world borrower is a complex task. Also, most of the micro-lending organization provide many, many other services to help the borrowers in addition to providing capital.
Here are a couple articles which provide more explanation:
http://fellowsblog.kiva.org/fellowsb...misconceptions
http://www.kiva.org/help/interestRateComparison
The second link seems incomplete in that the link within it (on money lenders' rates) seems incomplete.
Still, both of the links you provide are well worth reading.
#57
Join Date: Aug 2009
Location: RDU
Programs: A few
Posts: 5,499
Well thanks to this thread I have already learned a lot about Kiva. Basically it looks like you are providing interest free financing to a series of enterprises that in turn lend that money on at huge interest rates to the end borrowers - justified by stating that the high rates (which are not disclosed despite a "transparency" claim) are not as high as other "local lenders". I am yet to be convinced any of the end borrowers have any resemblance to the people listed in the website. It's more like adopt a whale/dog/tiger type thing. You think you are adopting harry the humpback but in reality you are just giving money to some black box. So presumably for every 1 dollar you lend the borrower gets maybe 30 or 40 cents and the rest goes to these enterprises you folks are providing interest free financing for.
Maybe I am too cynical, but as I have said before, I find other ways to give back that I have more faith in.
Maybe I am too cynical, but as I have said before, I find other ways to give back that I have more faith in.
#58
Join Date: Jan 2009
Location: LAX
Posts: 670
Well thanks to this thread I have already learned a lot about Kiva. Basically it looks like you are providing interest free financing to a series of enterprises that in turn lend that money on at huge interest rates to the end borrowers - justified by stating that the high rates (which are not disclosed despite a "transparency" claim) are not as high as other "local lenders".
#59
FlyerTalk Evangelist
Join Date: Dec 2003
Location: Benicia, California, USA
Programs: AA PLT,AS,UA PP,J6,FB,EY,LH,SQ,HH Dmd,Hyatt Glbl,Marriott Plat,IHG Plat,Accor Gold
Posts: 10,820
Well thanks to this thread I have already learned a lot about Kiva. Basically it looks like you are providing interest free financing to a series of enterprises that in turn lend that money on at huge interest rates to the end borrowers - justified by stating that the high rates (which are not disclosed despite a "transparency" claim) are not as high as other "local lenders". I am yet to be convinced any of the end borrowers have any resemblance to the people listed in the website. It's more like adopt a whale/dog/tiger type thing. You think you are adopting harry the humpback but in reality you are just giving money to some black box. So presumably for every 1 dollar you lend the borrower gets maybe 30 or 40 cents and the rest goes to these enterprises you folks are providing interest free financing for.
Maybe I am too cynical, but as I have said before, I find other ways to give back that I have more faith in.
Maybe I am too cynical, but as I have said before, I find other ways to give back that I have more faith in.
#60
Join Date: Jan 2009
Location: LAX
Posts: 670
Even though I've raised questions myself, I wouldn't necessarily jump to these conclusions. The issue really reaches beyond Kiva to microfinance more generally, but it is very possible that under some circumstances people really do get a chance to move ahead in life even though they pay interest rates that we would consider too high in a domestic context. And there are many other factors at play that make this a complicated issue and that mean that what Kiva does could well be very worthwhile.
I now see Kiva is not a charity service. In fact, I now wonder if it actually limits the amount of capital poured into microfinance. Since the borrowers are willing to pay interest, imagine how many more people would be willing to invest in microfinance if the lenders made a modest return.