My aunt used to donate monthly to a charity that helped people obtain finance in places where ‘our normal financial institutions’ do not reach. I want to continue with this spirit of helping those who struggle to access financial resources, so I have taken another look at https://www.kiva.org/
I know there are ethical concerns around the kind of finance provided by the local lenders associated with Kiva, and I do worry about the interest rates that some of the money is leant out at. The borrowers seem like genuine people who would otherwise not have access to such finance, so tipping the balance in their favour seems like what I want to do.
The way Kiva works is not as an investment vehicle, I am making no gain by lending money, though there are lending partners who are, instead I am taking on some of the risk, making that more palatable to those lending partners, allowing them to lend to people with worse risk profiles.
So far I have made three loans:
- Bakhtbek, Kyrgyzstan
- Dorothy, Uganda
- Sunshine, Philipines
My plan is to add $25 per month to loan out, relending the repaid capital. I aim to focus on individuals where small loans could make a big impact on their lives.
If you have suggestions for similar organisations with a better ethical stance, let me know. Kiva is something I have been vaguely following for a few years, and I like the spirit of it, but the interaction with local lenders does give me pause.
