Kiva Lending Team: Kiva Savings Account
We loan because...
Why keep money sitting around somewhere when it could be much more useful as capital for entrepreneurs?
Many people have large amounts of money just lying around, not accruing interest or being utilized in any useful way. This team is about making that money work – by shifting excess unused capital from your household into Kiva, you can help others while staying financially secure!
Keeping a high balance in your checking/savings account is unnecessary for many people. The yearly interest you earn on this amount, even in high-yield savings, usually won’t even top $100 on $10,000 in the current interest rate climate. How many Kiva entrepreneurs could you help with that money? (Answer: up to 800!*)
Shift some of that redundant money to Kiva and help alleviate poverty!
Notes: Since this money is being shifted from funds that you are somewhat used to having at your disposition, it is important that you are selective with your loans. You can loan to whoever you want, but it’s prudent to have this money available in a reasonable amount of time. Remember, you cannot get money from Kiva back immediately; you have to wait for repayments. That’s why we recommend investing in short-term loans of 5 or 6 months (so your repayments come in quickly and you can recoup all of your capital within half a year), spreading loans across multiple entrepreneurs/field partners/geographical regions (“diversifying” your loans to mitigate risk), and choosing field partners that have at least a 3-star rating (higher ratings means less delinquent/defaulted loans). Following these suggestions minimizes the risk inherent in loaning on Kiva.
*Assuming you invest the $10,000 in individual $25 loans of
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Francisca Magali received a loan from Lawrence to buy make-up, clothing, shoes, costume jewelry, lotions, and other things.
Fidele received a loan from Lawrence to purchase 20 dozen plastic plates, 30 trays and 10 cartons of knives.
Melaia received a loan from Lawrence to buy a new vehicle and to also buy cotton and fabric for her sewing business.
Fatuma received a loan from Lawrence to stock more clothes for sale to raise her children's school fees.
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