Kiva is a site through which you can give money as a loan to a needy person. There are poor people across the globe who need a relatively small amount of money to start or promote their business. This loan can help them improve their situation and come out of the vicious cycle of poverty. Eg. A fruit vendor may need a few hundred dollars to buy a better vending cart. A sewing shop owner may need to buy some sewing machines to expand the business. A farmer may need some money to buy seeds and fertilizer.
You can loan as less as $25 (around Rupees 1200). If a borrower needs $500 he will fund 20 persons willing to loan $25 each to him. Once he gets the money he puts it in the business and returns it to the 20 persons. Hopefully his business picks up and he starts returning the borrowed money.
I started giving loan around Jan 2010. I made it a point that I will make one loan of $25 every month. Well sometimes I get some extra money like bonus etc, I loan additional $25. With time I keep getting my previously loan money. Once I get my loan back, I have an option to get it in my account. But I used to reload that money.
Slowly, I started having more money in my portfolio and I started giving it as a loan to more people.
Since my first loan I have put total $650 in loans. But I have received the money back quite regularly and I kept reloaning it. As of now I have made loans worth $ 1450 with actual cash $ 650. Now every month I get around 4 loans back and I keep loaning it to people round or Farr from me.
Overall, I liked Kiva due to it’s simplicity it’s reach to remote Areas.