In the United States, we’re fortunate to have easy access to financial services that help us achieve personal and business goals through financing and credit. This access is something we often take for granted, as many around the globe can’t imagine achieving major life milestones like buying a home, pursuing higher education, or starting a business without such resources.
Microfinance is designed to bridge this gap. It provides financial services to those who don’t have access to conventional banking. Microfinance supports low-income individuals by giving them the means to lift themselves out of poverty through access to credit.
Kiva, co-founded by Matthew Flannery and Jessica Jackley, emerged from a simple yet profound idea during Jackley’s charity work in Africa. They realized that a lack of access to seed money was a major barrier for aspiring entrepreneurs in East Africa. Starting with fundraising from their wedding guests for seven initial loans, they laid the groundwork for what would become Kiva, a platform facilitating microloans across the globe, today boasting nearly $673 million in loans.
Kiva operates through field partners who identify potential borrowers to feature on their platform. These loans, starting as low as $25, are crowd-funded by individuals worldwide, enabling ongoing business ventures far beyond a one-time charitable donation. This approach not only helps borrowers start and grow businesses but also promotes economic sustainability in underserved regions.
The beauty of Kiva is that it provides an ongoing cycle of lending and repayment, where funds are continually reused to assist more individuals. It’s about empowering people rather than just providing aid, a model that has garnered widespread support and recognition for its effectiveness and impact.
Kiva also offers a way to get directly involved through its lending teams. Whether celebrating an event or honoring a loved one, these teams allow people to come together and support causes they care about. Moreover, Kiva keeps you engaged with detailed feedback on where your money goes and the businesses it helps.
For those looking to make a more hands-on impact, Kiva provides opportunities to volunteer, whether by translating loan profiles, offering technical skills, or even becoming a Kiva Fellow or Intern, contributing directly to their mission on the ground.
Despite criticisms regarding interest rates and the handling of loans, Kiva remains a transparent platform committed to empowering the financially underserved. It stands as a testament to the power of community support and the significant impact of microfinance.
By supporting Kiva, whether through loans, donations, or volunteering, individuals can participate in a global effort to foster entrepreneurship and combat poverty. It’s a way to make a meaningful difference, offering a hand up, not just a handout, to those striving to improve their lives and communities.
