Kiva Starts Student Loan Microfinance Program

When Kiva.org started up in 2005, it was the world’s first microlending website, a pioneer in the world of microfinance. By inviting people the world over to make interest-free loans as small as $25 to impoverished entrepreneurs with a click of the mouse, Kiva has inspired a whole new generation of philanthropists.

In the five years since its founding, over 477,000 people have logged onto the website and loaned more than $150 million to 408,000 entrepreneurs in 53 countries.

On Monday, Kiva announced its latest pioneering effort: a pilot program for higher education student microloans. “In developing countries, access to funding for education doesn’t exist like it does in the United States,” says Premal Shah, president of Kiva.org. “We believe the internet community is in a unique position to share the risk of student lending in the developing world and if these students repay their loans — as we believe they will — it could be the very impetus needed to make education accessible for everyone around the world.”

Kiva is launching its pilot in Bolivia, Lebanon and Paraguay, and has plans to expand into at least fifteen more countries in a year’s time. Its student loans will work in much the same way as its regular loans do: after a lender goes online and chooses a recipient, he or she can track the loan’s progress — from initial funding to repayment. When the loan is repaid, the lender can choose to withdraw his or her funds, or re-lend to another student or entrepreneur, and continue the lending cycle.

“Kiva sees the educational loans as part of a larger ecosystem,” Shah said on fastcompany.com. “Not all households are in a community or have the status or luxury of having your child achieve even primary education, let alone tertiary education. It’s a massive problem when an 8-year-old girl can’t go to school,” he continued. “What we’ve seen is of those people that can get an education, there’s a 200-300% lift in income level. That’s why it’s so prized for those that can access it.”

Check out Kiva.org to read the profiles of the loan recipients, including 20- year-old Noelia Ruiz Diaz Figueredo of Paraguay, pictured above.

 

photo: Courtesy of Kiva.org

71 comments

Jake B.
Past Member 6 months ago

Your blogs and its stuff magnetize me to return again n again. pay day loan in south bend indiana

Tom C.
.6 months ago

The quality of your blogs and conjointly the articles and price appreciating.
cash advance

 .
.6 months ago

Hi Dear, have you been certainly visiting this site daily, if that's the case you then will certainly get good knowledge.pay day loan in south bend indiana

Herry P.
Past Member 8 months ago

You have discusses incredible points that sounds good, keep up the great work. pay day loans

Drjones M.
Drjones M.10 months ago

I really enjoy reading and also appreciate your work. Click Finance

Froodo F.
Past Member about a year ago

It offer to make interest-free loans, amazing service they provided us, Keep it up! car title loans in los angeles

William G.
.about a year ago

This is very essential blog; it helped me a lot whatever you have provided. instagram

William G.
.1 years ago

It's been good to see your blog when I always look for such type of blogs. It’s great to discover the post here.
here

jane d.
Sarah M.4 years ago

hello I love this initiative, I am about to give 10,000 of my butterfly credits and im sure who to give it to, one at the time I guess, love u all!

Marianne P.
Past Member 4 years ago

Has anyone used their credits to fund Kiva loans and if so, when the loan is repaid, who receives the money? Does the person donating credits receive it back ready to reloan or is someone out there making money from this as loans are repaid.