Description
Kiva is an online crowdfunding app and mobile app that connects individuals who are seeking to improve their lives through small agricultural loans with potential sources of funding around the world. Borrowers apply for loans through local partners to fund various projects and activities in agriculture, healthcare, education, etc. Information about the loan, once submitted, is carefully edited and translated by a global network of volunteers, and made accessible to a global community of lenders. Once a loan has been fully funded, the local partner disburses the funds to the borrower. The disbursement and repayment of the loan are managed directly by Kiva in the United States.
Technology
Kiva operates through a web-based and mobile app that is downloadable from both the Apple App and Google Play Stores. Once registered, potential lenders can access a list of projects with detailed descriptions, and then process the loan through PayPal and a secure landing page.
Target
The main users of the platform are borrowers that include smallholder farmers all over the world in search of micro loans. The lenders are people seeking to contribute to social causes, and include private sector companies and individuals. Loans can be as small as USD 5.
Business model
As a non-profit organization, Kiva relies on donations, grants and fees paid by the lending partners to cover operational costs. Lenders can make a donation to Kiva when finalizing their loans with the borrower.
Impact
Kiva has overseen the crowdfunding of loans amounting to USD 1.6 billion (as of Sep 2023). According to the website, Kiva’s borrowers have a 96 percent repayment rate. The impact of Kiva's operations, as stated in the testimonies of various beneficiaries on the website, underscores the effectiveness of the microloan programme. Malik, a student who runs a cafe in the West Bank, states that the financial support he received facilitated his return to academic studies, while still contributing to his family's living expenses. "My life improved after I took out the loan. I was able to look after my interests again, returning to complete my studies while still helping my family with living expenses," he states. It is worthy of note that Kiva loans helped many people endure the economic fallout related to the COVID-19 pandemic. For instance, Feride, a grocery store owner in Türkiye, said that her microcredit had been instrumental in the sustaining of her business in the most challenging times. "Everyone struggled when the pandemic began. We faced hardships, which led me to apply for this microcredit. It eased our struggle, thankfully," she notes. According to the website the average repayment of loans disbursed through Kiva is 96.4 percent.
Partners
Mujeres Latinas en Accion; Tory Burch Foundation; La Cocina; Tacoma-Pierce County Chamber; Pittsburgh Hispanic Development Corporation; Centro Community Partners; Growth Partners Arizona; StartupJunkie.org; Build Institute; Causa Creativa; WWBIC; No Trustee Endorsement; City of West Allis; Metropolitan Business League Foundation; Rising Tide Capital; City of Norwalk, CT; Fresno Metro Black Chamber of Commerce
Four Betters
Better life
