Kiva Disappointment

I have just received a message from this Kiva group and after checking the Kiva forum and I tend to agree with Ashley “Check this one out. I’m genuinely concerned about this woman I mean,¬†what is she going to do without an outsdoor storage shed?!”

I have always been a firm supporter of Kiva and I introduced their case study to my classes. This is a disappointment. Microfinance, in my opinion, has to stay “micro” and relevant to these under served countries that need it the most. I perfectly understand that many families in the US are navigating in turbulent waters but this is certainly not a good reason to use microfinance – in the case of kiva free credit – to finance 5000-10,000+ $ loans. There are a good deal of peer to peer lending platforms like zopa and many other opportunities for Americans or British lenders. ¬†Very little, if any, for people in Samoa, Cambodia etc.

Additionally, some MFI institutions complained that Kiva does restrict their projects: they can only post small loans of less than 500$. This is completely fine but why then open US loans to these “jumbo” loans ? If Kiva wanted to do something in the US it should have focused in entrepreneurial micro projects for the needy and not these type of loans.

Gladly I am doing my with direct microfinance initiatives and trying something out with myc4 too.

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