Kiva
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Now I think this is a great use of technology and one that can really help people in the world. Kiva is a small company that looks to lend money to entrepreneurs in developing countries on a small scale. Like lending $25 to someone starting a poultry business in Togo.
I'm a capitalist at heart and definitely of the "teach a man (or woman) to fish" persuasion. I know there are people that need a handout and support and it's a good thing for the government to be involved in. But I think most people can work to support themselves, and some are built to be entrepreneurs. Despite my success with this site, that's not really what I'm good at, but I can see the skill in others. Most businesses fail because of capital problems and as loans become more difficult to get, it's even harder to build your own business without risking your family's future.
And I know how difficult it can be to find capital from traditional lenders. Especially when you're looking to deal in small amounts of money. Kiva is a great way to help those in other countries build their businesses and in turn their economies.
I'm sure there are people taking advantage of this and that's the way it is in any walk of life, but the amounts we're talking about are usually small. I'd like to think that Kiva does some background, that this will continue to grow and become a source of capital and investment that's reliable enough to sustain itself. After all, if eBay can work, albeit with some fraud, this should be able to as well.
If you've got some spare money to invest, and as little as $25 can be used, maybe give Kiva a try and see if you can help someone. You won't get rich financially doing this, but you'll probably sleep a little better at night.
PS - I've put my money where my mouth is and invested in Kiva. I've spread around $100 to Abla AKLA, Kossi AZIABLE, Egnonam ASSIMPAH, and Peter Muchiri.
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ok, this is officially one of the coolest uses of internet technology ever...
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C8H10N4O2
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Supercool. Brilliant idea.
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Do the loans pay interest? The site didn't really say anything about that.
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Why just limit this to entrepreneurs in developing countries only ? I for one know of individuals working hard just to eke out an existance in the US. A program such as this would benefit those that wish to work hard and better their own lot as well !
RegardsRudy KomacsarSenior Database Administrator"Ave Caesar! - Morituri te salutamus."
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No interest on loans is paid. The charity is in letting them use your money for a period of time.
I think something like this would make sense in the US as well. Maybe a grass roots venture capital organization.
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This kind of system has been in use for a while now. It is called Micro Lending or Micro Credit. Ventures like this are being tried in Mexico and Africa with great success. Typically they do pay intrest though.
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A pretty cool idea, however I do think it would be much more popular if the lenders were able to make a small profit. Right now all the risk is taken by the lenders with no return. I wouldn't want to try it unless I was getting back a percentage to cover the cost of borrowers who never paid back at the very least.
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In the USA, you can deduct bad debts from your taxes. I don't recall if it's from gross income or adjusted gross, but it beats a blank. (Note to self: never, ever, lend anyone bail money.)
There is no "i" in team, but idiot has two. -
This is a cool idea! Thanks for posting the link, Steve.
And BTW, I learned my lesson about lending bail money a couple of years ago. Jails mail the person arrested the bail money when they're released. So one day this person gets a check for hundreds of dollars, of your money. They promise they'll pay you back...sigh.
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It would be nice to get interest, but if I get my money back I'll be pretty happy. Probably loan it out again too. If I don't get my money back at least it will help in some way. The little banks are making money off this though. There's no reason why we should not get at least a little interest.
I don't think it would work in the US. I spent a good portion of my life "living in the projects" and I just don't think people would pay it back.
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