A Gathering Place for Entrepreneurial Engineers
Wednesday, April 08, 2009
Sunday, April 05, 2009
Made my Kiva micro-loan for the month of April
I made a new micro-loan through Kiva for the month of April. My intention is to make a new micro-loan every month, in large part from repayments for past micro-loans.
This one was for a man and his wife who has been selling toys and children's clothes in Mongolia for eight years now, to expand their business. It is a 26-month micro-loan for a total of $1,150, of which I lent $25. Its first repayment is scheduled for June 2009. The micro-loan was already disbursed to them on March 30, 2009 by the local partner. Kiva is raising funds to essentially buy that loan from the local partner.
Note: This is all real and good, but these micro-loans do not net any interest to us micro-lenders. Kiva's fine print:
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.
Still, at least we know our money is really helping somebody better their lives in a visible way rather than put the money in a bank account or money market fund where who knows what it helps to pay for or what good it does and for only a few pennies of profit in our pockets.