It encourages financial independence through entrepreneurship. As pointed by another lender, Kiva is not just another charity. On top of the money, it delivers development planning, organizational and financial advices and best of all it gives dignity to the borrowers who can say at the end: I DID IT.
On the personal side, it's good to think you did something useful...without that much of an effort. Congratulations to the Kiva teams for this excellent initiative.