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loans that change lives

KivaLoans That Change Lives

www.kiva.org

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DraftYenku Sesay: Survival to Success

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 Freetown

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DraftYenku Sesay: Survival to Success

Yenku was approached by a microfinance institution

The microfinance institution encouraged Yenku to take a loan of 300,000 Leones (about $100) to start a small business

Yenku sold soap, biscuits and small items for a small profit

As Yenku made a profit, he reinvested it into the business

Yenku now supports his family of three children, and even pays for his younger brother’s schools fees

As Yenku made a profit, he reinvested it into the business

Yenku now supports his family of three children, and even pays for his younger brother’s schools fees

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DraftHand up, not a hand out

Supplies for a store

Seed for crops

Tools for carpentry

Cloth for weaving

Materials for making products

Yenku’s story is not unique

Millions of people around the world could help themselves if they just had access to money for starting or expanding their small business

Whether they need tools, seed, fertilizer, cloth, store supplies, it just takes that first step, that start-up capital, to give them a chance to be truly self-sufficient

However they cannot apply for a loan from a bank, credit company or credit co-operative because banks typically do not serve the poor

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DraftIntroduction to Microfinance

Microfinance is the provision of financial services to the poor

For many in the developing world, savings accounts take the form of livestock

Give a man a fish, feed him for a day.Teach a man to fish, feed him for a lifetime.

What if he knows how to fish, but just can’t afford a fishing net?

Give a man a fish, feed him for a day.Teach a man to fish, feed him for a lifetime.

What if he knows how to fish, but just can’t afford a fishing net?

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 back• Savings accounts kept in the home, vulnerable to theft• 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 institution

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DraftMicrofinance Institutions

• Some focus on women in places where women don’t have the same rights as men and so have no economic empowerment

• Some focus on the rural population in areas where people are isolated and cannot travel to cities to access services

• Some focus on a comprehensive program which includes business training with financial products

• Some focus on women in places where women don’t have the same rights as men and so have no economic empowerment

• Some focus on the rural population in areas where people are isolated and cannot travel to cities to access services

• Some focus on a comprehensive program which includes business training with financial products

There are thousands of microfinance institutions around the world, and they all vary a little depending on the

region they are in and people they are targeting to help

What ties them all together, however, is a desire to help the poor by providing them with financial services

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DraftThe Traditional Microfinance Lending Process

Microfinance Institutions

Microfinance Institutions

EntrepreneursEntrepreneurs

Banks and NGOs

Banks and NGOs

• 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

• Restrictions that microfinance institutions face ultimately affect the entrepreneurs, who rely on microfinance institutions to serve them

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DraftThe Kiva Microfinance Lending Process

Microfinance Institutions

Microfinance Institutions

EntrepreneursEntrepreneurs

You!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

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Draftwww.kiva.org

Kiva.org is a website which allows you to lend to an entrepreneur in the developing world who needs a loan

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Draftwww.kiva.org

The Kiva website lists loan requests which you can browse, just like browsing items on eBay or another website

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Draftwww.kiva.org

Each loan request has a business page which gives you more information about the loan…

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Draftwww.kiva.org

Size of the loan and status

Size of the loan and status

Summary of the business and loan, including

when it is expected to be

paid back

Summary of the business and loan, including

when it is expected to be

paid back

Information on the microfinance institution which is managing the

loan on the ground

Information on the microfinance institution which is managing the

loan on the ground

Picture of the entrepreneurPicture of the entrepreneur

Description of the business and

what the loan will be used for

Description of the business and

what the loan will be used for

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Draftwww.kiva.org

The business page also shows you all of

the other people around the world

who are contributing to this loan

The business page also shows you all of

the other people around the world

who are contributing to this loan

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DraftKiva’s Lenders

720,000 lendersfrom 196 countries

have loaned $142 millionin just five years

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DraftKiva’s Borrowers

Repayment rate of over

98%

Working in Retail, Farming, Construction,

Education and many other sectors

Nearly 80% are women

From Africa, Asia, Eastern Europe, Middle

East, South America and Central America

Average loan size of $450

333,000 borrowers in

five years

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Draft

Kiva has 112 Microfinance Partners in 52 countries and is still growing

Kiva’s Microfinance Partners

Nicaragua

HondurasTogo

Senegal

Bulgaria

Uganda

Kenya

Tanzania

Cambodia

Samoa

Mexico

Ecuador

Nigeria

Ghana

Moldova

Mozambique

Ukraine

Afghanistan

Congo Indonesia

Azerbaijan

Cameroon

Tajikistan

Bolivia

Haiti Dominican Republic

Vietnam

Iraq

Nepal

Paraguay

Guatemala

Sierra Leone

Sudan

Rwanda

Benin

Lebanon

Bosnia & Herzegovina

Mali

El Salvador

Peru

Pakistan

Mongolia

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Draft

The organization has received a lot of attention in the press, as

more people learn about this new and unique way to give back

The organization has received a lot of attention in the press, as

more people learn about this new and unique way to give back

Kiva in the Press

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DraftWhat others are saying…

“…a positive alternative to conflict.”

“An eBay for Microfinance”

“(One of) Ten things that will change your future”

“Peace through PayPal?”

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DraftKiva is…

Kiva is the world’s first microlending website

Kiva’s mission is to connect people, through lending, for the sake of alleviating poverty

With Kiva, you can become a micro-lender to people like Yenku who just need a hand up

Kiva allows

Real People

to make a

Real Difference

in the lives of the poor

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DraftCampus Kiva: Students Making a Difference

Campus Kiva brings micro-lending to a whole new level: giving students the opportunity to play a direct role in changing lives. Through an international network of over 50 university chapters, Campus Kiva provides students with the perfect avenue to channel their desire to make a difference.

What We DoCampus Kiva provides its chapters with the resources and the support to create an effective presence on campus. Our international network of chapters allows you to learn from the techniques of other schools and to interact with students from around the world. Campus Kiva’s continually expanding list of partners will help you maximize your chapter’s effectiveness and will give you a once-in-a-lifetime experience!

Get Involved!Now you have the chance to get involved in the cutting edge of economic development. By participating in Campus Kiva at your school, you can help those in need while having fun with fellow students!

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• Starter Kit– Includes everything you need to start your own Campus Kiva chapter

• Ideas Kit– Includes dozens of fundraising and community outreach ideas

• Professors’ Kit– Includes ways to integrate Kiva into the classroom

• Grants Kit– Includes an introduction to the grant application process and several

grant-making organizations

• Media Kit– Includes press release tutorial and tips on how to get media coverage

• One Hen Kit– Includes activities to help bring microfinance to elementary schools

Campus Kiva’s Resources

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Brown University: A Black Tie Ball in support of Kiva.org hosted by Delta Phi Beta. Dance the night away in support of entrepreneurs on Kiva.org at the inaugural Kiva Ball. Proceeds from the event were used to create a portfolio of microloans on Kiva.org.

Campus Kiva in Action

Since 2008, Campus Kiva chapters have lent almost $300,000 in loans and we’re just getting started. Here are some of the ways our schools are making a difference:

Nationwide: Every April, students throughout the country will become entrepreneurs for a week by participating in the Gumball Challenge, a competition designed to inspire entrepreneurship for social impact. Each team receives a $27 loan and 27 gumballs and must create as much as value as possible; profits are used to finance Kiva loans.

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DraftThe Campus Kiva Network

In just 2 years, Campus Kiva has expanded to over 50 colleges and universities worldwide. Students are making a difference at these schools:

Amherst CollegeArizona State Univ.Bellevue CollegeBoston College

Bringham Young Univ. Bucknell Univ.Cal Poly SLO

Chapman Univ.CSU Chico

Davidson CollegeElmhurst CollegeGeorgetown Univ.

George Washington Univ.

Harvard Univ.James Madison Univ.

Kenyon CollegeLehigh Univ.

Luther College

McGill Univ.Michigan State Univ.

MITMoorpark College

North Greenville Univ.Northwestern Univ.

NYUOberlin College

Point Loma Nazarene Univ.Santa Clara Univ.

Sonoma State Univ.St. Anselm College

Thomas Univ.Toccoa Falls College

Tufts Univ.UC Berkeley

UC Davis

UCLAUC Santa BarbaraUniv. of Alabama

Univ. of British ColumbiaUniv. of Cambridge

Univ. of ChicagoU of Ill, Urbana-Champaign

Univ. of MarylandUniv. of Miami

UNC WilmingtonUniv. of Oxford

Univ. of PennsylvaniaUniv. of Pittsburgh

USCUniv. of Toronto

Univ. of UtahUniv. of Virginia

Univ. of Washington

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DraftCampus Kiva’s Partners

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loans that change lives

www.kiva.org

Loans that Change Lives