Wed 1 Jul 2009
If you ever needed to borrow just a few dollars to make ends meet or hold you over until payday, then you already understand why the services on the website Kiva.org are in high demand. Kiva is revolutionizing the way that lenders lend and the way borrowers borrow - and it is now available in America.
What is Micro-Financing?
Micro-financing is a term used to describe small scale loans. It is for people who just need a few extra dollars to make ends meet. The funds are often used by entrepreneurs to support, supplement or develop small business endeavors. Kiva was originally developed as a nonprofit group to help poor and aspiring entrepreneurs in foreign countries. It has since turned attentions domestically to help Americans accomplish their goals and dreams. The minimum micro-financing amount available through Kiva starts at just $25 and the maximum amount is $10,000.
Why Use Micro-Financing?
Micro-financing has changed the lives of many entrepreneurs. In faraway lands, it has made sustainable living possible. Domestically, it has restored hope for struggling individuals who have often times been denied financing by large financial institutions. Micro-financing in a unique solution to traditional business loans, and it is growing in popularity. It has also opened doors for those who want to try their hand at lending to explore the industry.
How Can Micro-Financing Help?
Micro-financing is especially effective for low-income individuals who may not have pristine credit scores, but have bright hopes and dreams. Kiva provides the opportunity for these individuals to transform their dreams into realities. Typically, the funds borrowed through micro-financing are quickly reinvested in promising businesses. It provides the right combination of stimulus and fuel for entrepreneurs to get ahead.
Kiva has an impressive track record when it comes to financing. All loans are set up in a no-interest fashion. About 90% of borrowers pay back their loans in full, and many of them do it less than year. Lenders have the option to withdraw their funds after repayment has been made, turn around and loan it to someone else, or make an in kind donation to Kiva. Kiva is essentially about helping your neighbor. The site is a beacon of hope for many during these difficult economic times.