Lending a Hand

Kal Cobalt

If you've ever wished you could loan a few bucks to the owner of a general store in Benin to increase the stock on the shelves or help a woman in Tajikistan purchase a computer so her four children can excel in their education, Kiva is for you.

Founded three years ago by Matt and Jessica Flannery, Kiva has facilitated over $41 million in loans to 58,000 developing-world entrepreneurs to date. Kiva now operates with just 33 staff members and receives free payment processing through an agreement with PayPal, thus rendering their overhead quite low.  It's "PayPal meets Gates Foundation," says Boing Boing writer Cory Doctorow.

The original online micro-lending platform, Kiva lenders can offer as little as $25 to participate in a loan.The website posts regular updates on loan repayments, and once the loan has been repaid in full, lenders are free to withdraw their monies or fund another loan. Kiva's present loan default rate of 1.52% is just one benchmark of the program's success. Accounts of the life-changing activities lenders pursue with their funds are presented at Kiva's Entrepreneur Profile page.