Named as one of the top ideas in 2006 by the New York Times Magazine, Kiva enables microfinance institutions (MFIs) to raise debt capital directly from social investors via the Internet. Kiva provides MFIs 0% interest US dollar debt capital in exchange for client impact transparency on the internet. MFIs on-lend this capital at prevailing interest rates and keep the interest income. Losses arising from client default are borne by Kiva's social investor.
Since launching in October 2005, over 89 MFIs in 42 countries have raised 0% interest debt capital from 289,000+ social investors via Kiva. Kiva partners with highly reputable MFIs across the globe. Click here to see a list of our field partners. As an online fundraising platform, well-established MFIs use Kiva to access low-cost debt financing from social investors via the internet. Smaller, less established MFIs also use Kiva's online platform as a source of growth capital and a way to prove their legitimacy to larger funders over time.
All MFIs benefit significantly by reducing their cost of capital and exhibiting their work and impact to an international audience - Kiva is the most trafficked website in microfinance with hundreds of thousands of site visitors each month. In fact, Kiva is on track to be one of the largest microfinance funds, experiencing an average month-to-month growth rate of over 30%.
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