luther college presentation

8/9/2019 Luther College Presentation

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KivaLoans That Change Lives

www.kiva.org



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Problem Statement & Solution: Hand up, not a hand out

Supplies for a store

Seed for crops

Tools for carpentry

Cloth for weaving

Materials for making products

Millions of people around the world couldhelp themselves if they just had access tomoney for starting or expanding their smallbusiness

Whether 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-sufficient

However they cannot apply for a loan froma bank, credit company or credit co-

operative because banks typically do notserve the poor



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Introduction to Microfinance

Microfinance is the provision of financial services to the poor

For many in the developing world, savingsaccounts 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 highthat 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 asafe and controlled environment, through a microfinance institution



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Microfinance Institutions

Some focus on women in places where women don¶t have

the same rights as men and so have no economicempowerment

Some focus on the rural population in areas wherepeople are isolated and cannot travel to cities to accessservices

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 economicempowerment

Some focus on the rural population in areas wherepeople are isolated and cannot travel to cities to accessservices

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 thepoor by providing them with financial services



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The Traditional Microfinance Lending Process

MicrofinanceInstitutions

MicrofinanceInstitutions

Entrepreneurs

Entrepreneurs

Banks andNGOs

Banks andNGOs

Microfinance institutions typically get the money that theylend, 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 dueto the region they operate in, particularly post-conflict regions

Restrictions that microfinance institutions face ultimately affect theentrepreneurs, who rely on microfinance institutions to serve them



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The Kiva Microfinance Lending Process

Microfinance

Institutions

Microfinance

Institutions

Entrepreneurs

Entrepreneurs

You!

You!

With Kiva, you can be micro-lender

You can act as a banker and providethe funds to microfinance institutionsthat they then lend to entrepreneurs



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www.kiva.org

Kiva.org is a website

which allows you tolend to an

entrepreneur whoneeds a loan

Through Kiva, youloan as little as $25 to

an entrepreneur at0% interest



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www.kiva.org

The Kiva website listsloan requests whichyou can browse, justlike browsing items on

eBay or another website

Loan requests are

often funded within

minutes by Kiva¶sactive lender base, andnew loans are alwayscoming on the site



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www.kiva.org

Each loan requesthas a business page

which gives you moreinformation about

the loan«



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www.kiva.org

Size of the loanand status

Size of the loanand status

Summary of the

business andloan, includingwhen it is

expected to bepaid back

Summary of the

business andloan, includingwhen it is

expected to bepaid back

Information onthe microfinanceinstitution whichis managing the

loan on theground

Information onthe microfinanceinstitution whichis managing the

loan on theground

Picture of theentrepreneur Picture of theentrepreneur

Description of thebusiness and

what the loan willbe used for

Description of thebusiness and

what the loan willbe used for



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www.kiva.org

The business page alsoshows you all of theother people aroundthe world who are

contributing to this loan

The business page alsoshows you all of theother people aroundthe world who are

contributing to this loan



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Kiva¶s Microfinance Partners

NicaraguaHonduras

Togo

Senegal

Bulgaria

Gaza

Uganda

Kenya

Tanzania

Cambodia

Samoa

Mexico

Ecuador Nigeria

Ghana

Moldova

Mozambique

Ukraine

Afghanistan

Congo

Indonesia

Azerbaijan

Cameroon

Tajikistan

Bolivia

Haiti

DominicanRepublic

Vietnam

Iraq

Kiva has lent 100 million dollars in loans through

103 Microfinance Partners in 49 countries and is still growing

Paraguay

Pakistan

Peru

Mali



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Kiva is«

Kiva is the world¶s first microlending website

Kiva¶s mission is to connect people, throughlending, for the sake of alleviating poverty

With Kiva, you can become a micro-lender topeople 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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How can you help?

1) Invite your friends to join Kiva

- Using Kiva¶s Invitation Systemhttp://www.kiva.org/about/do-more/

2) Join an existing Lending Team

- Use the message board to engage membershttp://www.kiva.org/community

3) Start your own Lending Team

- Use the ³Lending Team Playbook´ to help grow your teamhttp://www.kiva.org/about/playbook/

4) Use Social Media to help spread the word

- Facebook (55K fans)http://www.facebook.com/kiva

- Twitter (150K followers)http://twitter.com/kiva

- LinkedIn (8K members)http://www.linkedin.com/static?key=groups_giving_kiva



www.kiva.org

Loans that Change Lives

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