Some time ago, I was introduced to Kiva (www.kiva.org), a web based micro loan service. According to their website “Kiva’s mission is to connect people through lending for the sake of alleviating poverty.” For as little as $25.00 you can help individual or groups of entrepreneurs from third world countries grow their small businesses and become self sufficient. “Kiva is the world’s first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world.”

Also know as compassionate capitalism, Kiva directly affects the lives of thousands of people who otherwise would not have the means to take care of themselves and their families. Local “micro-finance partners” administer the loans. Entrepreneurs apply through their local micro-finance partner by submitting their information and financial needs. Often the loan requests are fulfilled by grouping the donations of several people together. The borrower commits to a repayment schedule. When the money is paid back you are free to re-invest with another person or group. No interest is paid on the loan. This is not a profit making enterprise, but it does feel good when you realize that your donation has helped some one out of their poverty cycle.

My first loan ($25.00 of $600.00 requested) was made to a man in Khujand, Tajikistan. Hakim Umarov has been selling nuts, garlic, potatoes, turnips and fruit vinegar (circo) for 28 years. He has been a MicroInvest borrower since 2002 and has shown himself to be a responsible borrower. Hakim learned about MicroInvest from a loan officer. Due to the loan he was able to increase his purchases from wholesalers and increase his profits. Sometimes he travels to Uzbekistan and Kyrgyzstan to purchase products. Hakim is a family man and has 3 children. His son helps him in his business. In the future he plans to pass on his business to his son. Hakim will use his Kiva loan to expand his inventory and support his fast product turnover.

This loan was paid back on time and in full as promised. From what I gather, 100% of the loans are repaid.

This began when my son-in-law gave me a gift of $25.00 in “Kiva Credit.” Since then I’ve affected the lives of about a dozen people. Since then I’ve added to my loan pool and will continue to do so. Even small donations can make a huge difference because in Kiva, your donations are combined with others either by Kiva or through “giving groups” some of which have pools as large as $250,000.00 to lend.

It’s a small way of giving, but it certainly matters to the borrower in ways that I can’t imagine. This is a “pay it forward” thing. Go to the Kiva website to learn more. Join and give or give someone a gift. It will make you feel better about yourself and the world.