What’s the goal?
To generate US$1bn in microfinance loans through Kiva by December 31, 2008.
What? Why?
Microfinance is about providing small loans to people in the developing world so they can create and grow businesses to help break the poverty cycle. Kiva is a website that connects these borrowers with people who are willing and able to lend them this money. The loans are used to purchase resources such as sewing machines, farm animals and pharmacy supplies.
The concept of microfinancing is so highly regarded, that Professor Muhummad Yunus was awarded the 2006 Nobel Peace Prize for his work in the field.
US$1bn? That’s crazy! How is it possible?
It’s all about the power of a network. If I introduce 2 new people to Kiva, and they each introduce 2 people, who each in turn bring another 2 new people, the network would grow to amazing proportions. If it takes each person 2 weeks to introduce 2 new lenders, and each person took out a single loan, after a year, this would generate over 67 million new loans. At US$25 per loan, the funds generated would exceed US$1.67bn!
How do I know that my money won’t be misused?
Money loaned through Kiva goes towards helping someone to escape the poverty cycle. To date, 100% of Kiva loans have been repaid ($3m loans so far as at Feb 2007).
Once a loan is raised, Kiva passes the money onto a local partner Microfinance Institution (MFI). This MFI manages the relationship with the borrower to ensure their business is progressing well. Kiva goes screens MFIs through a due diligence process to ensure all partners are legitimate and capable of managing their loans.
In addition to this, you’ll receive photo updates via email on how your borrower is progressing with their loan.
Ok, so how do I do it?
Send us an email at kivachallenge@gmail.com and we'll send you a referral. Be part of something big!
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3 comments:
I don't understand how you can track if someone reading this blog is donating and adding to the 1bn target. Please let me know when it's sorted out so I can link here and it will be meaningful.
Thanks for writing this.
What happened? Seems like you lost either momentum or interest.
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