Kiva crowdfunds loans for borrowers in more than 80 countries who are often financially excluded and can't access other fair and affordable sources of credit. In the U.S., Kiva crowdfunds loans for borrowers who are either financially excluded or creating social impact in their communities.
It works this way: Kiva posts pictures and stories of people needing loans. You give your money to Kiva. Kiva sends it to a microlender. The lender makes the loan to a person you choose.
Requirements for a Kiva loan:
You and your business must be based in the United States. You must at least 18 years old. The loan must be for business purposes. No personal loans are allowed.
Kiva is a “peer-to-peer” microfinance model
When you make a loan on Kiva, it is a direct connection to an individual entrepreneur in another country.
To apply for a Kiva U.S. loan, start an application here. The application is all online, and takes between 30 minutes and an hour to complete. Once you complete the application, a member of the Kiva U.S. team will reach out to you to better understand your business and ask any follow up questions.
One of the easiest ways to start lending money for profit is by investing into Bondora's Go and Grow tool. You are basically investing in a pool of thousands of loans. It's one of the easiest P2P lending products out there. With Bondora's Go & Grow you are earning 6.75% interest per year which is being paid out daily.
Alternatively, you can request that Kiva pay you an amount equivalent to such repayments by requesting a withdrawal. You must have both a Kiva account and a PayPal account to receive and withdraw repayments.
Kiva itself does not charge interest on its loans; they supply capital to microfinancing institutions for free. These microfinancing institutions then lend out money with high interest compared to bank finance in mature markets, averaging a portfolio yield of over 30%.
The idea was simple enough: By giving a very small loan to someone living in a poor country, you could help them expand a small business, which would lift their family out of poverty. When they pay back the loan, the money can be cycled to more borrowers, getting more families out of poverty.
We're often asked, "How much can I borrow and how long will it take to fund?" It's different for everyone, as loans can range from $1,000 - $15,000. We've seen that borrowers who take action and reach out to their community receive their loan as quickly as one week.
They found that while microloans did improve small business ownership and investment, they did not cause long-term increases in income. ... The researchers also found that microcredit didn't have much effect on school enrollment or women's empowerment—other social benefits it's been expected to provide.
Some of the best lenders to consider for a $15,000 loan with fair credit include LightStream, American Express, SoFi and Wells Fargo. Just about any lender that caters to people with fair credit scores (640 to 699) will offer loans of $15,000 or more, at least to some applicants.
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