Re: A unique charity, KIVA... have you seen this? Is it as good as it looks?
2014/01/06 02:02:48
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I am not familiar with KIVA but I am familiar with the concept of the micro-loan (or as KIVA calls it, micro-financing).
When I was in Kenya last year, we met with a bank that manages the microloans ... disbursing and collecting the monies.
If you are asking if a micro-loan is a good idea and if it works? I would say yes. If you are asking if KIVA in particular does a good job, that I can't answer.
I will say that the organization we visited reduces its risk by dispersing the money not to a single individual, but to a small group. Say for example, if an individual needs a $500 loan, they would get together with a group of 5 or 6 other individuals seeking small loans and approach the bank as a group. The responsibility of repaying the loan then falls on the group ... or in other words, if 1 individual doesn't pay, the group is responsible for his/her share.
Dave
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