Help Center
Kiva Microfunds
3180 18th Street, Suite 201
San Francisco, CA
94110 USA
3180 18th Street, Suite 201
San Francisco, CA
94110 USA
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PayPal 1-800 Number for
Questions Regarding The Payment Process
Dial 888-445-5032 (Toll Free US)
or 402-952-8811 (International),
Monday through Friday, 8 a.m. to 5 p.m. CST
for assistance in completing your transaction.
Interested in becoming a Kiva Field Partner? Visit our Field Partner Information Center for more information.
Questions Regarding The Payment Process
Dial 888-445-5032 (Toll Free US)
or 402-952-8811 (International),
Monday through Friday, 8 a.m. to 5 p.m. CST
for assistance in completing your transaction.
Before submitting your email, select a topic, so we can route your question appropriately. Please combine multiple questions in one email.
Topic:
How do I lend to a business?
Step 1: Click the "Lend" button at the top of the Kiva home page. You will be taken to the businesses In Need.
Step 2: Select an entrepreneur to whom you would like to lend and click "Lend $25" to the right of the business description.
Step 3: Add additional loans to your basket or click "Loan Added! Checkout."
Step 4: Review your Basket: If you want to change the amount you wish to lend, select the amount in the drop down menu and click "Update" and then click "Continue."
Step 5: Choose a password to create an account, or log into your Kiva account.
Step 6: Make an optional donation to Kiva's operational expenses or click "No Thanks."
Step 7: Pay for the loan through PayPal's secure website.
Step 2: Select an entrepreneur to whom you would like to lend and click "Lend $25" to the right of the business description.
Step 3: Add additional loans to your basket or click "Loan Added! Checkout."
Step 4: Review your Basket: If you want to change the amount you wish to lend, select the amount in the drop down menu and click "Update" and then click "Continue."
Step 5: Choose a password to create an account, or log into your Kiva account.
Step 6: Make an optional donation to Kiva's operational expenses or click "No Thanks."
Step 7: Pay for the loan through PayPal's secure website.
How do I lend with the “Kiva Credit” in my account?
Step 1: Click the "Lend" button at the top of the Kiva home page. You will be taken to the businesses In Need.
Step 2: Select an entrepreneur to whom you would like to lend and click "Lend $25" to the right of the business description.
Step 3: Add additional loans to your basket or click "Loan Added! Checkout."
Step 4: Review your Basket: If you want to change the amount you wish to lend, select the amount in the drop down menu and click "Update" and then click "Continue."
Step 5: When prompted, log into your account.
Step 6: Make an optional donation to Kiva's operational expenses or click "No Thanks."
Step 7: Review your transaction and click "Pay with Kiva Credit."
***If your total exceeds the amount of Kiva Credit in your account, the amount of your Kiva Credit will be deducted from your total, and you can proceed to PayPal to pay for the remainder of your purchase with funds from a credit card or a PayPal account.
Step 2: Select an entrepreneur to whom you would like to lend and click "Lend $25" to the right of the business description.
Step 3: Add additional loans to your basket or click "Loan Added! Checkout."
Step 4: Review your Basket: If you want to change the amount you wish to lend, select the amount in the drop down menu and click "Update" and then click "Continue."
Step 5: When prompted, log into your account.
Step 6: Make an optional donation to Kiva's operational expenses or click "No Thanks."
Step 7: Review your transaction and click "Pay with Kiva Credit."
***If your total exceeds the amount of Kiva Credit in your account, the amount of your Kiva Credit will be deducted from your total, and you can proceed to PayPal to pay for the remainder of your purchase with funds from a credit card or a PayPal account.
Can I lend less than $25 of Kiva Credit?
You can apply any amount of Kiva Credit to a loan purchase during checkout. $25 is the minimum amount that Kiva lenders can contribute to an entrepreneur, so if your total exceeds the amount of Kiva Credit in your account, the amount of your Kiva Credit will be deducted from your total, and you can proceed to PayPal to pay for the remainder of your purchase with funds from a credit card or a PayPal account.
Can we lend as a group?
Any Kiva lender can create a lending team by following these steps:
Step 1: Log into your Kiva account and click “Community.”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen. First, choose a name for your team and enter it in the “Team Name” field. Then, click the drop down box next to “Category” and select the category that you think best fits your team. If you would like to upload a photo, click the “Browse” button and locate the photo on your computer. Click “Open” to upload the photo. Complete the rest of the required fields and indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team.”
Step 4: You’ll be given the chance to recruit team members on the next page, or you can continue without inviting by clicking “Skip this Step”. Once you’re finished with this step, you’ll be taken to your Lending Team’s page. You are automatically made the captain of any lending team that you create, which gives you administrative privileges.
Step 1: Log into your Kiva account and click “Community.”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen. First, choose a name for your team and enter it in the “Team Name” field. Then, click the drop down box next to “Category” and select the category that you think best fits your team. If you would like to upload a photo, click the “Browse” button and locate the photo on your computer. Click “Open” to upload the photo. Complete the rest of the required fields and indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team.”
Step 4: You’ll be given the chance to recruit team members on the next page, or you can continue without inviting by clicking “Skip this Step”. Once you’re finished with this step, you’ll be taken to your Lending Team’s page. You are automatically made the captain of any lending team that you create, which gives you administrative privileges.
Was my transaction successful?
When you successfully complete a transaction, you receive a receipt confirming your purchase from PayPal. This receipt contains a transaction ID that will be referenced in your Kiva Transaction History. You can log into your Kiva Account at any time to view your transaction history or to view the loans to which you contributed. These are two great steps to take to ensure that your purchase was successful.
Simply log into your Kiva account and click "My Portfolio." Then click "Account" and "Transaction History" to view your transaction history. Or, you can click “Loans” to view the businesses to which you contributed. Here, please note that you can select from the following options under the heading "My Loans:" In Need, Raised, Paying Back, Paid Back, Defaulted, Refunded. Depending on the heading you chose, different loans in your portfolio will be displayed.
Simply log into your Kiva account and click "My Portfolio." Then click "Account" and "Transaction History" to view your transaction history. Or, you can click “Loans” to view the businesses to which you contributed. Here, please note that you can select from the following options under the heading "My Loans:" In Need, Raised, Paying Back, Paid Back, Defaulted, Refunded. Depending on the heading you chose, different loans in your portfolio will be displayed.
Do I have to use PayPal?
You can pay by credit card through PayPal's website, even if you don't have a PayPal account. You will, however, need a PayPal account when you withdraw your funds, as Kiva.org uses PayPal to handle all financial transactions. PayPal provides Kiva.org with free payment processing, which helps us to keep our operational expenses low.
What if PayPal will not accept my credit card?
Kiva.org does not have access to your payment details, as PayPal processes all of our financial transactions.
If you have trouble making your payment, please contact the PayPal Customer Service line created by PayPal specifically for Kiva users at 888-445-5032 (Toll Free US) or 402-952-8811 (International), Monday through Friday, 8 a.m. to 5 p.m. CST. These phone numbers are staffed by PayPal employees who are specially trained to help Kiva lenders!
If you have trouble making your payment, please contact the PayPal Customer Service line created by PayPal specifically for Kiva users at 888-445-5032 (Toll Free US) or 402-952-8811 (International), Monday through Friday, 8 a.m. to 5 p.m. CST. These phone numbers are staffed by PayPal employees who are specially trained to help Kiva lenders!
How do I create a lending team?
Any Kiva lender can create a lending team by following these steps:
Step 1: Log into your Kiva account and click “Community”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen. First, choose a name for your team and enter it in the “Team Name” field. Then, click the drop down box next to “Category” and select the category that you think best fits your team. If you would like to upload a photo, click the “Browse” button and locate the photo on your computer. Click “Open” to upload the photo. Complete the rest of the required fields and indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team”.
Step 4: You’ll be given the chance to recruit team members on the next page, or you can continue without inviting by clicking “Skip this Step”. Once you’re finished with this step, you’ll be taken to your Lending Team’s page.
You are automatically made the captain of any lending team that you create, which gives you administrative privileges.
Step 1: Log into your Kiva account and click “Community”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen. First, choose a name for your team and enter it in the “Team Name” field. Then, click the drop down box next to “Category” and select the category that you think best fits your team. If you would like to upload a photo, click the “Browse” button and locate the photo on your computer. Click “Open” to upload the photo. Complete the rest of the required fields and indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team”.
Step 4: You’ll be given the chance to recruit team members on the next page, or you can continue without inviting by clicking “Skip this Step”. Once you’re finished with this step, you’ll be taken to your Lending Team’s page.
You are automatically made the captain of any lending team that you create, which gives you administrative privileges.
How do I join a lending team?
You can join a public lending team by following these steps:
Step 1: Go to www.kiva.org and click “Community”.
Step 2: Enter your search criteria in the field next to “Search for a lending team” and click “Search”.
Step 3: You’ll see a list of teams that best match your search. If the team you’re interested in is open to all Kiva lenders, click “Join Team.” If the team is closed, click “Request to Join”.
*You’ll receive an email confirming your acceptance to a closed team pending the team captain’s approval.
Step 4: Log in to or create a Kiva account.
Step 1: Go to www.kiva.org and click “Community”.
Step 2: Enter your search criteria in the field next to “Search for a lending team” and click “Search”.
Step 3: You’ll see a list of teams that best match your search. If the team you’re interested in is open to all Kiva lenders, click “Join Team.” If the team is closed, click “Request to Join”.
*You’ll receive an email confirming your acceptance to a closed team pending the team captain’s approval.
Step 4: Log in to or create a Kiva account.
How do I create a lending team for my special event?
Many lenders choose to create lending teams for special events such as weddings, birthdays, bar/bat mitzvahs, or any large milestone or gathering. You can create a lending team for your special event by following these steps:
Step 1: Go to Kiva (www.kiva.org) and click “Community”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen where you can fill out the details of your team.
First, choose a name for your team and enter it in the “Team Name” field.
Then, click the drop down box next to “Category” and select the category that you think best fits your team.
You can upload a photo, if you would like by clicking the “Browse” button and locating the photo on your computer. Click “Open” to upload the photo.
The “We Loan Because” and “How Would You Describe Your Team?” sections allow you to explain a little bit about your event and why you chose to lend with Kiva.
You can enter where event will take place in “Location” and if there is a website for your event, you can enter it in “Lending Team Website”.
Finally, you’ll have to indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team”.
Step 4: You’ll be given the chance to recruit team members on the next page. Once you’re finished with this step, you’ll be taken to your group’s lending team page. You can always log into your account to invite additional group members later.
Step 1: Go to Kiva (www.kiva.org) and click “Community”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen where you can fill out the details of your team.
First, choose a name for your team and enter it in the “Team Name” field.
Then, click the drop down box next to “Category” and select the category that you think best fits your team.
You can upload a photo, if you would like by clicking the “Browse” button and locating the photo on your computer. Click “Open” to upload the photo.
The “We Loan Because” and “How Would You Describe Your Team?” sections allow you to explain a little bit about your event and why you chose to lend with Kiva.
You can enter where event will take place in “Location” and if there is a website for your event, you can enter it in “Lending Team Website”.
Finally, you’ll have to indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team”.
Step 4: You’ll be given the chance to recruit team members on the next page. Once you’re finished with this step, you’ll be taken to your group’s lending team page. You can always log into your account to invite additional group members later.
How do I create a lending team for my company?
You can create a lending team for your company (or for a division or group within your company) by following these steps:
Step 1: Go to Kiva (www.kiva.org) and click “Community”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen where you can fill out the details of your team.
First, choose a name for your team – usually your company’s name - and enter it in the “Team Name” field.
Then, click the drop down box next to “Category” and select the category that you think best fits your team. For most companies, “Businesses” will fit. However, if you are creating a lending team for a group within your company, you should select “Businesses – Internal Groups”.
You can upload a photo, if you would like. Most companies use their logo as their lending team’s photo. If you would like to upload a photo, click the “Browse” button and locate the photo on your computer. Click “Open” to upload the photo.
The “We Loan Because” and “How Would You Describe Your Team?” sections allow you to explain a little bit about your company and why you chose to lend with Kiva.
You can enter where your company or division is headquarted in “Location” and you can provide your company’s website under “Lending Team Website”.
Finally, you’ll have to indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team”.
Step 4: You’ll be given the chance to recruit team members on the next page, or you can continue without inviting by clicking “Skip this Step”. Once you’re finished with this step, you’ll be taken to your company’s lending team page.
Step 1: Go to Kiva (www.kiva.org) and click “Community”
Step 2: Click the “Start a New Team” button on the top left side of the page.
Step 3: You’ll be taken to the “Edit Team” screen where you can fill out the details of your team.
First, choose a name for your team – usually your company’s name - and enter it in the “Team Name” field.
Then, click the drop down box next to “Category” and select the category that you think best fits your team. For most companies, “Businesses” will fit. However, if you are creating a lending team for a group within your company, you should select “Businesses – Internal Groups”.
You can upload a photo, if you would like. Most companies use their logo as their lending team’s photo. If you would like to upload a photo, click the “Browse” button and locate the photo on your computer. Click “Open” to upload the photo.
The “We Loan Because” and “How Would You Describe Your Team?” sections allow you to explain a little bit about your company and why you chose to lend with Kiva.
You can enter where your company or division is headquarted in “Location” and you can provide your company’s website under “Lending Team Website”.
Finally, you’ll have to indicate whether or not you’d like the team to be open to all Kiva lenders, or if it should be closed – and members can only be added by your approval. When you’re finished, click “Save Team”.
Step 4: You’ll be given the chance to recruit team members on the next page, or you can continue without inviting by clicking “Skip this Step”. Once you’re finished with this step, you’ll be taken to your company’s lending team page.
I’m a member of more than one lending team. How do I pick which team my loan counts towards?
Whenever you lend, you have the opportunity to count that loan toward one of your lending team’s Impact. You can count a loan toward a lending team of your choosing by following these steps:
Step 1: Log into your Kiva account and click on the "Lend" button at the top of the Kiva home page. You will automatically be taken to the entrepreneurs in need.
Step 2: When you find an entrepreneur that you would like to fund either click “Lend $25” to quickly lend $25, or click the name of the entrepreneur and then select the amount you would like to fund from the drop down box and click “Lend”.
Step 3: Add additional loans to your basket or click "Loan Added! Checkout."
Step 4: You’ll be taken to your basket where you can select what lending team your loans should count towards. Beneath the “Count Towards Team” column, you’ll see a drop down box with your preferred lending team’s name listed. Click that box and select the lending team you wish the loan to count towards. If you want to change the amount you wish to lend, select the amount in the drop down menu. When you’re finished, click "Continue."
Step 5: Make an optional donation to Kiva's operational expenses or click "No Thanks."
Step 6: You will be automatically transferred to PayPal to pay for the loan through PayPal's secure website.
***Please note that you will not have the ability to count your loans towards any of your lending teams unless you log into your Kiva account before going through the checkout process.
Step 1: Log into your Kiva account and click on the "Lend" button at the top of the Kiva home page. You will automatically be taken to the entrepreneurs in need.
Step 2: When you find an entrepreneur that you would like to fund either click “Lend $25” to quickly lend $25, or click the name of the entrepreneur and then select the amount you would like to fund from the drop down box and click “Lend”.
Step 3: Add additional loans to your basket or click "Loan Added! Checkout."
Step 4: You’ll be taken to your basket where you can select what lending team your loans should count towards. Beneath the “Count Towards Team” column, you’ll see a drop down box with your preferred lending team’s name listed. Click that box and select the lending team you wish the loan to count towards. If you want to change the amount you wish to lend, select the amount in the drop down menu. When you’re finished, click "Continue."
Step 5: Make an optional donation to Kiva's operational expenses or click "No Thanks."
Step 6: You will be automatically transferred to PayPal to pay for the loan through PayPal's secure website.
***Please note that you will not have the ability to count your loans towards any of your lending teams unless you log into your Kiva account before going through the checkout process.
How can I send Lender Messages?
Currently, you can only send a Lender Message from a public Lender Page by clicking on the Send Message button. You can also reply to a message you've received by using the 'Reply' button in My Portfolio -> My Messages --> Received.
How do I Purchase a gift certificate?
*Step 1: Click “Kiva Gifts” at the top of the Kiva home page.
*Step 2: Click “Purchase Now” under the gift certificates heading.
*Step 3: Enter the amount/number of gift certificates desired and uncheck the box, “Email this to the recipient immediately after purchase,” if you wish to give the gift certificate later. Enter the name of the intended recipient if you wish his or her name to appear on the certificate.
***You will not be able to enter the recipient's name/email address if you purchase multiple gift certificates at one time
*Step 4: Log into your Kiva account or create a Kiva account.
*Step 5: Pay for the loan through PayPal's secure website.
You will then receive an email from Kiva.org confirming your purchase. This email will contain a link to a printable gift certificate that you can print and mail or give to a friend.
Please note that you can also log into your Kiva account and click “My Portfolio” and then “Gift Certificates” to view and/or print the gift certificates that you have purchased.
The gift certificate obtained through this link will provide the recipient with the two items of information necessary to redeem a Kiva gift certificate: the purchaser's email address and the certificate's unique gift code.
*Step 2: Click “Purchase Now” under the gift certificates heading.
*Step 3: Enter the amount/number of gift certificates desired and uncheck the box, “Email this to the recipient immediately after purchase,” if you wish to give the gift certificate later. Enter the name of the intended recipient if you wish his or her name to appear on the certificate.
***You will not be able to enter the recipient's name/email address if you purchase multiple gift certificates at one time
*Step 4: Log into your Kiva account or create a Kiva account.
*Step 5: Pay for the loan through PayPal's secure website.
You will then receive an email from Kiva.org confirming your purchase. This email will contain a link to a printable gift certificate that you can print and mail or give to a friend.
Please note that you can also log into your Kiva account and click “My Portfolio” and then “Gift Certificates” to view and/or print the gift certificates that you have purchased.
The gift certificate obtained through this link will provide the recipient with the two items of information necessary to redeem a Kiva gift certificate: the purchaser's email address and the certificate's unique gift code.
How do I use a Kiva Gift certificate?
*Step 1: Click "Kiva Gifts" at the top of the home page.
*Step 2: Under "Gift Certificates" click "Redeem".
*Step 3: If you already have a Kiva Account click "Login Now" at the top of the page, then enter the Gift Code and Email of Purchaser, which appear on your Gift Certificate (to the right of the Kiva logo). Click Redeem Gift Certificate.
*Step 4: If you are a new Kiva User, enter the Gift Code and Email of Purchaser, which appear on your Gift Certificate (to the right of the Kiva logo). Then enter your details, including a password, to create a Kiva Account. Click Sign Up.
*Step 5: Your Gift Certificate has now been redeemed, and the value of your gift is available as a credit balance in your account. To make a loan, click on LEND to browse the businesses in need of funding.
*Step 6: Click "Pay with Kiva Credit” during checkout.
***If your total exceeds the amount of Kiva Credit in your account, the amount of your Kiva Credit will be deducted from your total, and you can proceed to PayPal to pay for the remainder of your purchase with funds from a credit card or a PayPal account.
*Step 2: Under "Gift Certificates" click "Redeem".
*Step 3: If you already have a Kiva Account click "Login Now" at the top of the page, then enter the Gift Code and Email of Purchaser, which appear on your Gift Certificate (to the right of the Kiva logo). Click Redeem Gift Certificate.
*Step 4: If you are a new Kiva User, enter the Gift Code and Email of Purchaser, which appear on your Gift Certificate (to the right of the Kiva logo). Then enter your details, including a password, to create a Kiva Account. Click Sign Up.
*Step 5: Your Gift Certificate has now been redeemed, and the value of your gift is available as a credit balance in your account. To make a loan, click on LEND to browse the businesses in need of funding.
*Step 6: Click "Pay with Kiva Credit” during checkout.
***If your total exceeds the amount of Kiva Credit in your account, the amount of your Kiva Credit will be deducted from your total, and you can proceed to PayPal to pay for the remainder of your purchase with funds from a credit card or a PayPal account.
How can I print the Gift Certificates I purchased?
Your Gift Certificates are available for printing anytime before the gift has been redeemed.
*Step 1: Log into your Kiva account
*Step 2: Click "My Portfolio"
*Step 3: Click "Gift Certificates"
*Step 4: Scroll down to your Gift Certificates, and click on the link, "print this gift certificate" beside the Gift Code.
*Step 5: Print the certificate on your printer.
***When the gift has been redeemed, the name of the account which the gift was redeemed to will appear beside the gift code.
*Step 1: Log into your Kiva account
*Step 2: Click "My Portfolio"
*Step 3: Click "Gift Certificates"
*Step 4: Scroll down to your Gift Certificates, and click on the link, "print this gift certificate" beside the Gift Code.
*Step 5: Print the certificate on your printer.
***When the gift has been redeemed, the name of the account which the gift was redeemed to will appear beside the gift code.
How can I tell if the recipient has used the gift certificate?
Log into your Kiva account and click "My Portfolio" and then "Gift Certificates." Scroll down to view the certificates that you purchased. If a gift certificate has been redeemed, who redeemed the certificate and when will appear to the right of the gift code.
Do Kiva gift certificates expire?
Yes, Kiva gift certificates purchased after October 19, 2007 expire within one year from the date of purchase. You can log into your Kiva account and select "Gift Certificates" to view the date of purchase for each of your certificates and to see when they expire.
How can I view the loans in my portfolio?
You can log into your Kiva Account at any time to view the loans in your portfolio. Simply log into your account and click "My Portfolio" and then click "Loans." If you click on the name of a business you can view that business' profile page, which will display any journal entries posted for that business.
When a business makes a partial repayment, can I re-lend or withdraw the funds immediately?
Yes, your Kiva account will be credited each time a repayment is made, and you can then re-lend your funds, donate them to Kiva, or withdraw them into a PayPal account.
How does Kiva's repayment system work?
Kiva’s repayment system is designed to accurately reflect the way that our Field Partners collect funds from the entrepreneurs that you’ve supported with loans.
When one of Kiva’s Field Partners uploads an entrepreneur’s loan request to Kiva, they set the anticipated repayment dates for the loan and the date that the loan is set to be disbursed to the entrepreneur. This repayment schedule can be monthly, once at the end of the loan term, or whatever most accurately reflects the way that the entrepreneur will be making repayments.
Our Field Partners have until the end of the month that each anticipated repayment is due to let Kiva know whether or not they actually collected the repayment. Once we have all of this information, we use it to generate a bill to charge our Field Partners for all of the repayments they collected that month.
To speed things up and to minimize the number of wire transfers being sent overseas, Kiva works on a net billing system. This means that, for any given month, we subtract the amount of repayments that a Field Partner owes to Kiva lenders from the amount that a Field Partner fundraises for entrepreneurs on Kiva.
If the balance is positive, that means that the Field Partner has raised more than they need to repay, and we use those funds to credit your lender account with the repayments due to you.
If the balance is negative, then the Field Partner has 30 days to send us a payment for the balance. As soon as we receive that payment, we use those funds to credit your lender account with the repayments due to you.
Once the repayment is made into your Kiva account, you can re-lend the funds, donate them to Kiva’s operating expenses, purchase a gift certificate or withdraw them into a PayPal account.
When one of Kiva’s Field Partners uploads an entrepreneur’s loan request to Kiva, they set the anticipated repayment dates for the loan and the date that the loan is set to be disbursed to the entrepreneur. This repayment schedule can be monthly, once at the end of the loan term, or whatever most accurately reflects the way that the entrepreneur will be making repayments.
Our Field Partners have until the end of the month that each anticipated repayment is due to let Kiva know whether or not they actually collected the repayment. Once we have all of this information, we use it to generate a bill to charge our Field Partners for all of the repayments they collected that month.
To speed things up and to minimize the number of wire transfers being sent overseas, Kiva works on a net billing system. This means that, for any given month, we subtract the amount of repayments that a Field Partner owes to Kiva lenders from the amount that a Field Partner fundraises for entrepreneurs on Kiva.
If the balance is positive, that means that the Field Partner has raised more than they need to repay, and we use those funds to credit your lender account with the repayments due to you.
If the balance is negative, then the Field Partner has 30 days to send us a payment for the balance. As soon as we receive that payment, we use those funds to credit your lender account with the repayments due to you.
Once the repayment is made into your Kiva account, you can re-lend the funds, donate them to Kiva’s operating expenses, purchase a gift certificate or withdraw them into a PayPal account.
Why do most expected repayments come in on the 1st of the month?
When one of Kiva’s Field Partners uploads a loan request to Kiva, they provide Kiva with a schedule of repayments that they anticipate the entrepreneur will make. At the end of every month, Kiva requires that our Field Partners indicate whether or not they’ve collected these repayments from the entrepreneur. They have a 15 day grace period after the end of the month to do so.
After this 15 day grace period, we bill our partners for all of the repayments that they indicate they’ve collected. Our Field Partners then have an additional 15 days to make a payment to Kiva so that we can deposit the repayments into your Kiva account.
For example, if a Field Partner posts a loan with the first repayment on January 10th, we ask them to indicate whether or not they’ve received this repayment by January 31st.
On Feburary 15th, at the end of the grace period, we generate a bill to the Field Partner for all of these repayments.
The Field Partner then has until March 1st to pay this bill before we mark the payment on Kiva as delinquent.
After this 15 day grace period, we bill our partners for all of the repayments that they indicate they’ve collected. Our Field Partners then have an additional 15 days to make a payment to Kiva so that we can deposit the repayments into your Kiva account.
For example, if a Field Partner posts a loan with the first repayment on January 10th, we ask them to indicate whether or not they’ve received this repayment by January 31st.
On Feburary 15th, at the end of the grace period, we generate a bill to the Field Partner for all of these repayments.
The Field Partner then has until March 1st to pay this bill before we mark the payment on Kiva as delinquent.
What if a loan is only partially repaid?
If a partially repaid loan is declared in default (it is determined the entrepreneur cannot repay the rest of the loan), the repayments collected so far will be distributed to the lenders proportionate to their contribution to the loan. In short, Kiva.org never keeps any of the funds, we always send 100% of funds loaned to the partner, and 100% of funds repaid are returned to the lenders.
Can I forgive a loan?
You cannot request that an entrepreneur not be required to repay your portion of the loan he or she received. If an entrepreneur defaults on his or her loan, the outstanding payments must be forgiven by all lenders. Kiva does not facilitate taking action against an entrepreneur whose loan has defaulted, so all default costs are borne by lenders. As Kiva's lending process is designed to accommodate loans and not donations, all funding requests on the Kiva site are considered loans.
How can I re-lend funds from a repaid loan?
*Step 1: Log into your Kiva account and click "My Portfolio." Make sure that you have "Available Kiva Credit" posted in the upper right corner of your screen.
*Step 2: Click "Lend" to browse the businesses in need of funding.
*Step 3 When you are ready to check out, click "Pay with Kiva Credit."
***If your total exceeds the amount of Kiva Credit in your account, the amount of your Kiva Credit will be deducted from your total, and you can proceed to PayPal to pay for the remainder of your purchase with funds from a credit card or a PayPal account.
*Step 2: Click "Lend" to browse the businesses in need of funding.
*Step 3 When you are ready to check out, click "Pay with Kiva Credit."
***If your total exceeds the amount of Kiva Credit in your account, the amount of your Kiva Credit will be deducted from your total, and you can proceed to PayPal to pay for the remainder of your purchase with funds from a credit card or a PayPal account.
How can I donate funds from a repaid loan to Kiva.org?
When a loan that you contributed to is repaid in-full, you can log into your Kiva account and select "Donate" in the upper right hand corner of your portfolio page in order to donate these funds to Kiva.org's operational expenses.
How do I withdraw funds from my Kiva account?
*Step 1: Log into your Kiva account
*Step 2: Click "My Portfolio"
*Step 3: Click "Withdraw" in the upper right hand corner of the screen
*Step 4: Enter the amount that you wish to withdraw and enter the email address registered with your PayPal account
Kiva and PayPal will process your withdrawal request, and in 1 to 2 weeks the funds will be deposited into your PayPal account. As PayPal processes all of Kiva.org's financial transactions, it is necessary to withdraw the funds into your PayPal account. Kiva cannot send you a personal check or deposit the funds into your personal bank account.
If you do not have a PayPal account, please create a PayPal account athttp://www.paypal.com. If you have any issues in creating or updating your PayPal account, you can contact PayPal at 888-445-5032 (Toll Free US) or 402-952-8811 (International), Monday through Friday, 8 a.m. to 5 p.m. CST. These phone numbers are staffed by PayPal employees who are specially trained to help Kiva lenders!
*Step 2: Click "My Portfolio"
*Step 3: Click "Withdraw" in the upper right hand corner of the screen
*Step 4: Enter the amount that you wish to withdraw and enter the email address registered with your PayPal account
Kiva and PayPal will process your withdrawal request, and in 1 to 2 weeks the funds will be deposited into your PayPal account. As PayPal processes all of Kiva.org's financial transactions, it is necessary to withdraw the funds into your PayPal account. Kiva cannot send you a personal check or deposit the funds into your personal bank account.
If you do not have a PayPal account, please create a PayPal account athttp://www.paypal.com. If you have any issues in creating or updating your PayPal account, you can contact PayPal at 888-445-5032 (Toll Free US) or 402-952-8811 (International), Monday through Friday, 8 a.m. to 5 p.m. CST. These phone numbers are staffed by PayPal employees who are specially trained to help Kiva lenders!
How do I upload a new lender picture?
*Step 1: Log into your Kiva account.
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Lender Page" at the left of the screen.
*Step 4: Upload your new pic and click “Save Changes" at the bottom of the page
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Lender Page" at the left of the screen.
*Step 4: Upload your new pic and click “Save Changes" at the bottom of the page
How can I re-set my email preferences?
*Step 1: Log into your Kiva account.
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Account" at the left of the screen.
*Step 4: Select/De-Select “send me news from Kiva" and/or “send me updates from businesses I sponsor," and click save.
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Account" at the left of the screen.
*Step 4: Select/De-Select “send me news from Kiva" and/or “send me updates from businesses I sponsor," and click save.
How can I make my account anonymous?
*Step 1: Log into your Kiva account.
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Lender Page" at the left of the screen.
*Step 4: Select "Anonymous" under "Display Name."
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Lender Page" at the left of the screen.
*Step 4: Select "Anonymous" under "Display Name."
How do I Change the email address registered with my account?
*Step 1: Log into your Kiva account.
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Account" at the left of the screen.
*Step 4: Enter your new email address, and click “save New Email."
*Step 2: Click "My Portfolio" at the top of the page.
*Step 3: Click "My Account" at the left of the screen.
*Step 4: Enter your new email address, and click “save New Email."
How do I reset my Password
Select "Log In" at the top of the Kiva home page. Then click the "Forget Your Password?" link. Enter your email address, and we'll send you instructions on how to reset your password.
***For security reasons, the instructions we send expire if they are not used soon after being sent, so make sure you change your password directly.
***For security reasons, the instructions we send expire if they are not used soon after being sent, so make sure you change your password directly.
Why can't I log into my account?
Account log in issues usually occur due to password or user email address issues. First, please be sure that the email address you are entering is the email address that you registered with your account. Also, try resetting your password by selecting "Log In" at the top of the Kiva home page. Then click the "Forget Your Password?" link. Enter your email address, and we'll send you instructions on how to reset your password.
***For security reasons, the instructions we send expire if they are not used soon after being sent, so make sure you change your password directly.
***For security reasons, the instructions we send expire if they are not used soon after being sent, so make sure you change your password directly.
How can I tell if my transaction went through?
When you successfully complete a transaction, you receive a receipt confirming your purchase from PayPal. This receipt contains a transaction ID that will be referenced in your Kiva Transaction History. You can log into your Kiva Account at any time to view your transaction history or to view the loans to which you contributed. These are two great steps to take to ensure that your purchase was successful.
Simply log into your Kiva account and click "My Portfolio." Then click "Account" and "Transaction History" to view your transaction history. Or, you can click "Loans" to view the businesses to which you contributed. There, please note that you can select from the following options under the heading "My Loans:" In Need, Raised, Paying Back, Paid Back, Defaulted, Refunded. Depending on the heading you choose, different loans in your portfolio will be displayed.
Simply log into your Kiva account and click "My Portfolio." Then click "Account" and "Transaction History" to view your transaction history. Or, you can click "Loans" to view the businesses to which you contributed. There, please note that you can select from the following options under the heading "My Loans:" In Need, Raised, Paying Back, Paid Back, Defaulted, Refunded. Depending on the heading you choose, different loans in your portfolio will be displayed.
Why did I receive a receipt from PayPal, when I used my credit card?
PayPal processes all of Kiva.org's financial transactions, so you will receive a receipt from PayPal recording your purchase at Kiva.org regardless of whether you pay with a personal credit card or with funds from a PayPal account.
Why don't you work with a field partner in XX country?
A list of Kiva's current Field Partners can be found on our Partner pages: www.kiva.org/about/partners .
We are working hard to expand our partnerships to all regions across the globe at a pace that is healthy for both our current partners and for Kiva.org.
If we do not partner with an MFI in your area of interest, you can check out the Mix Market, which is a great website that collects data on microfinance institutions around the world. You may be able to find a microfinance institution in your area of interest on this site. Please refer to their website athttp://www.mixmarket.org.
We are working hard to expand our partnerships to all regions across the globe at a pace that is healthy for both our current partners and for Kiva.org.
If we do not partner with an MFI in your area of interest, you can check out the Mix Market, which is a great website that collects data on microfinance institutions around the world. You may be able to find a microfinance institution in your area of interest on this site. Please refer to their website athttp://www.mixmarket.org.
Do Kiva.org's Field Partners charge interest to the entrepreneurs?
Yes, self-sustainability is critical to creating long-term solutions to poverty, and charging interest to entrepreneurs is necessary for microfinance institutions to achieve this. Our Field Partners are free to charge interest, but Kiva.org will not partner with an organization that charges exorbitant interest rates. We also require Field Partners to fully disclose their interest rates. You can find more information about the interest rates that Kiva's field partners charge on our partner pages: www.kiva.org/about/partners/ .
Microfinance is an expensive business, which is essentially the reason small loans are not provided by large banks. While Kiva.org's Field Partners do not bear the cost of capital or the cost of default, they do bear transaction costs and currency risk. Charging interest to entrepreneurs enables our Field Partners to bear these costs and achieve self-sustainability.
Microfinance is an expensive business, which is essentially the reason small loans are not provided by large banks. While Kiva.org's Field Partners do not bear the cost of capital or the cost of default, they do bear transaction costs and currency risk. Charging interest to entrepreneurs enables our Field Partners to bear these costs and achieve self-sustainability.
Why are your field Partners' interest rates so high?
The average interest rate that a Kiva field partner charges is about 21%, and Kiva.org only partners with microfinance institutions that have a social mission of lending to the poor. To obtain more information about how Kiva.org evaluates and selects its field partners, please see our Risk and Due Diligence center: www.kiva.org/about/risk/overview .
The nature of microcredit " small loans " is such that interest rates need to be high to return the cost of the loan. To quote (CGAP) (Consultative Group to Assist the Poor):
"There are three kinds of costs the MFI has to cover when it makes microloans. The first two, the cost of the money that it lends and the cost of loan defaults, are proportional to the amount lent. For instance, if the cost paid by the MFI for the money it lends is 10%, and it experiences defaults of 1% of the amount lent, then these two costs will total $11 for a loan of $100, and $55 for a loan of $500. An interest rate of 11% of the loan amount thus covers both these costs for either loan.
The third type of cost, transaction costs, is not proportional to the amount lent. The transaction cost of the $500 loan is not much different from the transaction cost of the $100 loan. Both loans require roughly the same amount of staff time for meeting with the borrower to appraise the loan, processing the loan disbursement and repayments, and follow-up monitoring. Suppose that the transaction cost is $25 per loan and that the loans are for one year. To break even on the $500 loan, the MFI would need to collect interest of $50 + 5 + $25 = $80, which represents an annual interest rate of 16%. To break even on the $100 loan, the MFI would need to collect interest of $10 + 1 + $25 = $36, which is an interest rate of 36%. At first glance, a rate this high looks abusive to many people, especially when the clients are poor. But in fact, this interest rate simply reflects the basic reality that when loan sizes get very small, transaction costs loom larger because these costs can't be cut below certain minimums." (CGAP)
The nature of microcredit " small loans " is such that interest rates need to be high to return the cost of the loan. To quote (CGAP) (Consultative Group to Assist the Poor):
"There are three kinds of costs the MFI has to cover when it makes microloans. The first two, the cost of the money that it lends and the cost of loan defaults, are proportional to the amount lent. For instance, if the cost paid by the MFI for the money it lends is 10%, and it experiences defaults of 1% of the amount lent, then these two costs will total $11 for a loan of $100, and $55 for a loan of $500. An interest rate of 11% of the loan amount thus covers both these costs for either loan.
The third type of cost, transaction costs, is not proportional to the amount lent. The transaction cost of the $500 loan is not much different from the transaction cost of the $100 loan. Both loans require roughly the same amount of staff time for meeting with the borrower to appraise the loan, processing the loan disbursement and repayments, and follow-up monitoring. Suppose that the transaction cost is $25 per loan and that the loans are for one year. To break even on the $500 loan, the MFI would need to collect interest of $50 + 5 + $25 = $80, which represents an annual interest rate of 16%. To break even on the $100 loan, the MFI would need to collect interest of $10 + 1 + $25 = $36, which is an interest rate of 36%. At first glance, a rate this high looks abusive to many people, especially when the clients are poor. But in fact, this interest rate simply reflects the basic reality that when loan sizes get very small, transaction costs loom larger because these costs can't be cut below certain minimums." (CGAP)
How does Kiva fund its operations?
Kiva.org currently sends 100% of your loans to the borrowers listed on the site. However, self-sustainability is critical to us. To this end, we support ourselves principally on the "optional fees" our lenders voluntarily pay to the organization in addition to the loans they make. Based on this income stream alone, we are currently self-sufficient. In the future, as the needs of our charitable cause dictate, we are open to considering additional revenue streams such as partnership fees.
Lastly, we have raised growth capital from a small group including Silicon Valley angel donors, corporate sponsors and foundations such as the Draper Richards Foundation and the Kellogg Foundation. We are incredibly thankful for this support that has helped us keep up with a fast pace of growth.
Lastly, we have raised growth capital from a small group including Silicon Valley angel donors, corporate sponsors and foundations such as the Draper Richards Foundation and the Kellogg Foundation. We are incredibly thankful for this support that has helped us keep up with a fast pace of growth.
What happens if a loan expires on the Kiva Website?
All loans can fundraise for up to a month on the Kiva website. If a loan is not fully funded within a month, all contributing lenders will be refunded and notified by email.
How will I receive repayments?
Each time a repayment is made on your loan, you will receive an email notifying you that funds were deposited into your Kiva account as Kiva credit. Then you can re-lend your funds, donate them to Kiva, or withdraw them to a PayPal account.
How does Kiva's repayment system work?
Kiva’s repayment system is designed to accurately reflect the way that our Field Partners collect funds from the entrepreneurs that you’ve supported with loans.
When one of Kiva’s Field Partners uploads an entrepreneur’s loan request to Kiva, they set the anticipated repayment dates for the loan and the date that the loan is set to be disbursed to the entrepreneur. This repayment schedule can be monthly, once at the end of the loan term, or whatever most accurately reflects the way that the entrepreneur will be making repayments.
Our Field Partners have until the end of the month that each anticipated repayment is due to let Kiva know whether or not they actually collected the repayment. Once we have all of this information, we use it to generate a bill to charge our Field Partners for all of the repayments they collected that month.
To speed things up and to minimize the number of wire transfers being sent overseas, Kiva works on a net billing system. This means that, for any given month, we subtract the amount of repayments that a Field Partner owes to Kiva lenders from the amount that a Field Partner fundraises for entrepreneurs on Kiva.
If the balance is positive, that means that the Field Partner has raised more than they need to repay, and we use those funds to credit your lender account with the repayments due to you.
If the balance is negative, then the Field Partner has 30 days to send us a payment for the balance. As soon as we receive that payment, we use those funds to credit your lender account with the repayments due to you.
Once the repayment is made into your Kiva account, you can re-lend the funds, donate them to Kiva’s operating expenses, purchase a gift certificate or withdraw them into a PayPal account.
When one of Kiva’s Field Partners uploads an entrepreneur’s loan request to Kiva, they set the anticipated repayment dates for the loan and the date that the loan is set to be disbursed to the entrepreneur. This repayment schedule can be monthly, once at the end of the loan term, or whatever most accurately reflects the way that the entrepreneur will be making repayments.
Our Field Partners have until the end of the month that each anticipated repayment is due to let Kiva know whether or not they actually collected the repayment. Once we have all of this information, we use it to generate a bill to charge our Field Partners for all of the repayments they collected that month.
To speed things up and to minimize the number of wire transfers being sent overseas, Kiva works on a net billing system. This means that, for any given month, we subtract the amount of repayments that a Field Partner owes to Kiva lenders from the amount that a Field Partner fundraises for entrepreneurs on Kiva.
If the balance is positive, that means that the Field Partner has raised more than they need to repay, and we use those funds to credit your lender account with the repayments due to you.
If the balance is negative, then the Field Partner has 30 days to send us a payment for the balance. As soon as we receive that payment, we use those funds to credit your lender account with the repayments due to you.
Once the repayment is made into your Kiva account, you can re-lend the funds, donate them to Kiva’s operating expenses, purchase a gift certificate or withdraw them into a PayPal account.
Why do most expected repayments come in on the 1st of the month?
When one of Kiva’s Field Partners uploads a loan request to Kiva, they provide Kiva with a schedule of repayments that they anticipate the entrepreneur will make. At the end of every month, Kiva requires that our Field Partners indicate whether or not they’ve collected these repayments from the entrepreneur. They have a 15 day grace period after the end of the month to do so.
After this 15 day grace period, we bill our partners for all of the repayments that they indicate they’ve collected. Our Field Partners then have an additional 15 days to make a payment to Kiva so that we can deposit the repayments into your Kiva account.
For example, if a Field Partner posts a loan with the first repayment on January 10th, we ask them to indicate whether or not they’ve received this repayment by January 31st.
On Feburary 15th, at the end of the grace period, we generate a bill to the Field Partner for all of these repayments.
The Field Partner then has until March 1st to pay this bill before we mark the payment on Kiva as delinquent.
After this 15 day grace period, we bill our partners for all of the repayments that they indicate they’ve collected. Our Field Partners then have an additional 15 days to make a payment to Kiva so that we can deposit the repayments into your Kiva account.
For example, if a Field Partner posts a loan with the first repayment on January 10th, we ask them to indicate whether or not they’ve received this repayment by January 31st.
On Feburary 15th, at the end of the grace period, we generate a bill to the Field Partner for all of these repayments.
The Field Partner then has until March 1st to pay this bill before we mark the payment on Kiva as delinquent.
What if a loan is only partially repaid?
If a partially repaid loan is declared in default (it is determined the entrepreneur cannot repay the rest of the loan), the repayments collected so far will be distributed to the lenders proportionate to their contribution to the loan. In short, Kiva.org never keeps any of the funds, we always send 100% of funds loaned to the partner, and 100% of funds repaid are returned to the lenders.
What is Kiva's EIN?
71-099 2446.
How does Kiva fund its operations?
Kiva.org currently sends 100% of your loans to the borrowers listed on the site. However, self-sustainability is critical to Kiva.org. To this end, we support ourselves principally on the "optional fees" our lenders voluntarily pay to the organization in addition to the loans they make. Based on this income stream alone, we are currently self-sufficient. In the future, as the needs of our charitable cause dictate, we are open to considering additional revenue streams such as partnership fees.
Lastly, we have raised growth capital from a small group including Silicon Valley angel donors, corporate sponsors and foundations such as the Draper Richards Foundation and the Kellogg Foundation. We are incredibly thankful for this support that has helped us keep up with a fast pace of growth.
Lastly, we have raised growth capital from a small group including Silicon Valley angel donors, corporate sponsors and foundations such as the Draper Richards Foundation and the Kellogg Foundation. We are incredibly thankful for this support that has helped us keep up with a fast pace of growth.
Can I view Kiva's financial statements?
Yes, we've included a balance sheet (www.kiva.org/content/BS_1H_08.pdf) and an income statement (www.kiva.org/content/PL_1H_08.pdf) here for your reference.
How does Kiva.org choose its Field Partners?
Kiva.org partners with established microfinance institutions with a social mission of lending to the poor. We conduct extensive Due Diligence on each Field Partner. For more information, please visit our Risk and Due Diligence center: www.kiva.org/about/risk/overview.
What are the Field Partners' responsibilities?
Our Field Partners are responsible for vetting loan applications to ensure that loans uploaded to the site have a high chance of being a successful business. The Field Partner uploads the loan details, including a photo of the entrepreneur and a description of the business, to Kiva.org's website for approval and live posting.
Once a loan has been funded our Field Partners are responsible for managing the loan on the ground, including distributing loan funds, collecting repayments and providing reasonable support to entrepreneurs to ensure the highest chance of business success. Field Partners are responsible for providing updates on the progress of the business through Kiva.org's software.
Finally, Field Partners are responsible for forwarding repayments to Kiva.org on a quarterly basis.
Once a loan has been funded our Field Partners are responsible for managing the loan on the ground, including distributing loan funds, collecting repayments and providing reasonable support to entrepreneurs to ensure the highest chance of business success. Field Partners are responsible for providing updates on the progress of the business through Kiva.org's software.
Finally, Field Partners are responsible for forwarding repayments to Kiva.org on a quarterly basis.
Do Kiva.org's Field Partners charge interest to the entrepreneurs?
Yes, self-sustainability is critical to creating long-term solutions to poverty, and charging interest to entrepreneurs is necessary for microfinance institutions to achieve this. Our Field Partners are free to charge interest, but Kiva.org will not partner with an organization that charges exorbitant interest rates. We also require Field Partners to fully disclose their interest rates. You can find more information about the interest rates that Kiva's field partners charge on our partner pages: www.kiva.org/about/partners .
Microfinance is an expensive business, which is essentially the reason small loans are not provided by large banks. While Kiva.org's Field Partners do not bear the cost of capital or the cost of default, they do bear transaction costs and currency risk. Charging interest to entrepreneurs enables our Field Partners to bear these costs and achieve self-sustainability.
Microfinance is an expensive business, which is essentially the reason small loans are not provided by large banks. While Kiva.org's Field Partners do not bear the cost of capital or the cost of default, they do bear transaction costs and currency risk. Charging interest to entrepreneurs enables our Field Partners to bear these costs and achieve self-sustainability.
Why are your field Partners' interest rates so high?
The average interest rate that a Kiva field partner charges is about 21%, and Kiva.org only partners with microfinance institutions that have a social mission of lending to the poor. To obtain more information about how Kiva.org evaluates and selects its field partners, please see our Risk and Due Diligence center: www.kiva.org/about/risk/overview .
The nature of microcredit " small loans " is such that interest rates need to be high to return the cost of the loan. To quote (CGAP) (Consultative Group to Assist the Poor):
"There are three kinds of costs the MFI has to cover when it makes microloans. The first two, the cost of the money that it lends and the cost of loan defaults, are proportional to the amount lent. For instance, if the cost paid by the MFI for the money it lends is 10%, and it experiences defaults of 1% of the amount lent, then these two costs will total $11 for a loan of $100, and $55 for a loan of $500. An interest rate of 11% of the loan amount thus covers both these costs for either loan.
The third type of cost, transaction costs, is not proportional to the amount lent. The transaction cost of the $500 loan is not much different from the transaction cost of the $100 loan. Both loans require roughly the same amount of staff time for meeting with the borrower to appraise the loan, processing the loan disbursement and repayments, and follow-up monitoring. Suppose that the transaction cost is $25 per loan and that the loans are for one year. To break even on the $500 loan, the MFI would need to collect interest of $50 + 5 + $25 = $80, which represents an annual interest rate of 16%. To break even on the $100 loan, the MFI would need to collect interest of $10 + 1 + $25 = $36, which is an interest rate of 36%. At first glance, a rate this high looks abusive to many people, especially when the clients are poor. But in fact, this interest rate simply reflects the basic reality that when loan sizes get very small, transaction costs loom larger because these costs can't be cut below certain minimums." (CGAP)
The nature of microcredit " small loans " is such that interest rates need to be high to return the cost of the loan. To quote (CGAP) (Consultative Group to Assist the Poor):
"There are three kinds of costs the MFI has to cover when it makes microloans. The first two, the cost of the money that it lends and the cost of loan defaults, are proportional to the amount lent. For instance, if the cost paid by the MFI for the money it lends is 10%, and it experiences defaults of 1% of the amount lent, then these two costs will total $11 for a loan of $100, and $55 for a loan of $500. An interest rate of 11% of the loan amount thus covers both these costs for either loan.
The third type of cost, transaction costs, is not proportional to the amount lent. The transaction cost of the $500 loan is not much different from the transaction cost of the $100 loan. Both loans require roughly the same amount of staff time for meeting with the borrower to appraise the loan, processing the loan disbursement and repayments, and follow-up monitoring. Suppose that the transaction cost is $25 per loan and that the loans are for one year. To break even on the $500 loan, the MFI would need to collect interest of $50 + 5 + $25 = $80, which represents an annual interest rate of 16%. To break even on the $100 loan, the MFI would need to collect interest of $10 + 1 + $25 = $36, which is an interest rate of 36%. At first glance, a rate this high looks abusive to many people, especially when the clients are poor. But in fact, this interest rate simply reflects the basic reality that when loan sizes get very small, transaction costs loom larger because these costs can't be cut below certain minimums." (CGAP)
Why don't you work with a field partner in XX country?
A list of Kiva's current Field Partners can be found on our Partner pages: www.kiva.org/about/partners .
We are working hard to expand our partnerships to all regions across the globe at a pace that is healthy for both our current partners and for Kiva.org.
If we do not partner with an MFI in your area of interest, you can check out the Mix Market, which is a great website that collects data on microfinance institutions around the world. You may be able to find a microfinance institution in your area of interest on this site. Please refer to their website athttp://www.mixmarket.org.
We are working hard to expand our partnerships to all regions across the globe at a pace that is healthy for both our current partners and for Kiva.org.
If we do not partner with an MFI in your area of interest, you can check out the Mix Market, which is a great website that collects data on microfinance institutions around the world. You may be able to find a microfinance institution in your area of interest on this site. Please refer to their website athttp://www.mixmarket.org.
Does Kiva facilitate loans to entrepreneurs in the United States?
Eventually Kiva.org would love to work with partners in the United States. However, for now, we are not currently facilitating loans in the U.S., as it is more complex legally to facilitate peer-to-peer lending in the United States. By focusing on lending in the developing world, more social good can be created for less money; it is cheaper to start a business in the developing world than in the developed world. Finally, please know that there is already an organization which facilitates peer-to-peer online lending in the US - check them out athttp://www.prosper.com.
Can I contact a field partner?
Kiva posts all available contact information for its field partners on our partner pages: www.kiva.org/about/partners/ . If you click on the name of a field partner, you will be taken to the partner's Profile Page where you will find its contact information.
Please note that many of the field partners that work with Kiva.org have limited access to the internet, may not speak English, and have a very small number of staff members. For these reasons, it may be difficult for a partner to respond to your inquiry.
Please note that many of the field partners that work with Kiva.org have limited access to the internet, may not speak English, and have a very small number of staff members. For these reasons, it may be difficult for a partner to respond to your inquiry.
Can I recommend a Kiva Field Partner?
If you know of a microfinance institution (MFI) that fits Kiva's criteria, please contact the MFI directly and ask them to review our minimum criteria to ensure they are a good fit and, if so, to submit an MFI profile using our Become a Field Partner page.
Why do some partners post group loans?
Group loans are a powerful innovation in microfinance, because they are often less expensive for partners to manage in terms of time and resources. In a group, microfinance institutions can leverage the local knowledge of individuals to select good borrowers; disburse many loans at once; collect repayments in a group; and more easily follow up on delinquent loans, as group members have an incentive to work with each other to ensure on-time repayment. By using these efficient aspects of group lending, microfinance institutions can issue more loans in smaller amounts to the poorest.
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© 2005-2009 Kiva. All rights reserved. Kiva is a U.S. 501(c)3 non-profit organization.
Lending to the working poor through Kiva involves risk of principal loss.
Kiva does not guarantee repayment nor do we offer a financial return on your loan.
© 2005-2009 Kiva. All rights reserved. Kiva is a U.S. 501(c)3 non-profit organization.
Lending to the working poor through Kiva involves risk of principal loss.
Kiva does not guarantee repayment nor do we offer a financial return on your loan.
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