20081009 kiva introduction

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  • 1. Draftloans that change livesKivaLoans That Change Lives www.kiva.org

2. Yenku Sesay: Survival to SuccessDraft Yenku Sesay is a 30 year old Sierra Leonean In 2006 rebel soldiers cut off his hands as punishment for voting When he was 21 years old, Yenku was a double amputee, whose only prospects were begging in the streets of Freetown2 3. Yenku Sesay: Survival to SuccessDraftYenku was approached by amicrofinance institutionThe microfinance institution encouragedYenku to take a loan of 300,000 Leones(about $100) to start a small businessYenku sold soap, biscuits and smallitems for a small profitAs Yenku made a profit, he reinvested it into the businessYenku now supports his family of three children, and evenpays for his younger brothers schools fees3 4. Hand up, not a hand outDraft Materials for making productsYenkus story is not uniqueMillions of people around the world couldhelp themselves if they just had access tomoney for starting or expanding their smallbusinessTools for carpentry Supplies for a storeWhether they need tools, seed, fertilizer,cloth, store supplies, it just takes that firststep, that start-up capital, to give them achance to be truly self-sufficientHowever they cannot apply for a loan from Cloth for weaving Seed for cropsa bank, credit company or credit co-operative because banks typically do notserve the poor 4 5. Introduction to MicrofinanceDraftMicrofinance is the provision of financial services to the poor The poor are typically excluded by financial service providers: No collateral No credit history Illiteracy The poor need financial services, and already use them informally: Borrowing money from loan sharks with interest rates so high that it may be impossible to ever pay backFor many in the developing world, savings Savings accounts kept in the home, vulnerable to theft accounts take the form of livestock Investing in livestock which is vulnerable to disease Microfinance works to provide the poor with these financial services, in a safe and controlled environment, through a microfinance institutionGive a man a fish, feed him for a day.Give a man a fish, feed him for a day.Teach a man to fish, feed him for a lifetime.Teach a man to fish, feed him for a lifetime.What if he knows how to fish,What if he knows how to fish,but just cant afford a fishing net?but just cant afford a fishing net?5 6. Microfinance InstitutionsDraft There are thousands of microfinance institutions aroundthe world, and they all vary a little depending on theregion they are in and people they are targeting to help Some focus on women in places where women dont have Some focus on women in places where women dont have the same rights as men and so have no economicthe same rights as men and so have no economic empowermentempowerment Some focus on the rural population in areas where Some focus on the rural population in areas where people are isolated and cannot travel to cities to accesspeople are isolated and cannot travel to cities to access servicesservices Some focus on a comprehensive program which Some focus on a comprehensive program which includes business training with financial productsincludes business training with financial products What ties them all together, however, is a desire to help thepoor by providing them with financial services 6 7. The Traditional Microfinance Lending ProcessDraftBanks andNGOs Microfinance institutions typically get the money that they lend, from banks or non-governmental organizations, or both This can be expensive, as it is often borrowed with interest There may also be difficult application procedures to access debt capital from non-governmental organizations Some organizations can even find themselves shut out due to the region they operate in, particularly post-conflict regions MicrofinanceInstitutions Restrictions that microfinance institutions face ultimately affect the entrepreneurs, who rely on microfinance institutions to serve themEntrepreneurs7 8. The Kiva Microfinance Lending Process Draft You! With Kiva, you can be micro-lender You can act as a banker and provide the funds to microfinance institutions that they then lend to entrepreneurs MicrofinanceInstitutionsEntrepreneurs8 9. www.kiva.orgDraft Kiva.org is a website which allows you to lend as little as $25 to an entrepreneur in the developing world who needs a loan9 10. www.kiva.org Draft The Kiva website lists loan requests which you can browse, just like browsing items on eBay or another website10 11. www.kiva.orgDraft Each loan request has a business page which gives you more information about the loan 11 12. www.kiva.orgDraftSize of the loanSize of the loan Picture of the Picture of theand status and status entrepreneur entrepreneurSummary of theSummary of the business and business and loan, includingloan, including when it is when it isexpected to be expected to be Description of the Description of the paid back paid backbusiness and business and what the loan will what the loan willbe used forbe used forInformation on Information onthe microfinancethe microfinance institution whichinstitution whichis managing theis managing the loan on theloan on thegroundground 12 13. www.kiva.org DraftThe business pageThe business page also shows you all of also shows you all of the other peoplethe other people around the world around the world who are contributing who are contributingto this loan to this loan13 14. Kivas Lenders Draft340,000 lendersfrom 135 countries have loaned $45millionin just three years14 15. Kivas BorrowersDraft92,000From Africa, Asia, borrowers in Eastern Europe, Middle three years East, South America and Central America Repayment rate of over 98%Nearly 80%are womenWorking in Retail, Farming, Construction,Education and many Average loan other sectorssize of $450 15 16. Kivas Microfinance PartnersDraftKiva has 90 Microfinance Partners in 42 countries and is still growingUkraine MoldovaMongolia Bosnia & AzerbaijanHerzegovina Bulgaria TajikistanLebanon Iraq AfghanistanNepalMexicoHaiti Dominican RepublicPakistanMaliGuatemalaSenegal Vietnam HondurasSudanTogoNigeriaEl SalvadorSierra LeoneCambodia NicaraguaCameroonGhana Benin UgandaEcuador KenyaCongo RwandaIndonesia Tanzania PeruMozambiqueBoliviaSamoa Paraguay 16 17. Kiva in the PressDraftThe organization has received aThe organization has received a lot of attention in the press, as lot of attention in the press, asmore people learn about this newmore people learn about this newand unique way to give backand unique way to give back17 18. What others are sayingDrafta positive alternativeto conflict.An eBay for Microfinance(One of) Ten things that willchange your futurePeace through PayPal?18 19. Kiva isDraft Kiva is the worlds first microlending website Kivas mission is to connect people, throughlending, for the sake of alleviating poverty With Kiva, you can become a micro-lender to people like Yenku who just need a hand upKiva allows Real People to make aReal Differencein the lives of the poor19 20. Draftloans that change lives www.kiva.orgLoans that Change Lives