With as little as $25 anyone with access to the Internet can sponsor Habil Seferov in Azerbaijan who raises cattle to support his family. He requested a loan of $1,200 to purchase more calves. The Kiva site shows how many people have contributed to Mr. Seferov's loan, which is disbursed through Agroinvest Creditunion (a Kiva field partner). Mr. Seferov will repay the loan over 15 months.
How Kiva Was Started in 2005
It makes a big difference in people's lives if they can sleep on a mattress instead of a dirt floor, if they can afford sugar in their daily tea and buy fresh fish for their families a few times a week. This is what Jessica Flannery —- an MBA student at the time — learned during a visit to Uganda, where she met entrepreneurs who used small grants from Village Enterprise Fund to start a business. After she heard Dr. Muhammad Yunus (founder of Grameen Bank and winner of the Nobel Peace Prize) speak at Stanford University, she wanted to explore a career in microfinance. Jessica and (her husband) Matt Flannery launched Kiva in 2005, the Swahili word Kiva meaning "unity' or "concord".
How A Microloan With Kiva Works
Prospective lenders browse profiles of entrepreneurs on the Kiva site and choose someone. Lending is done via PayPal or by credit card. One of Kiva's microfinance partners receives the funds and passes the money on to the entrepreneur. Microfinance partners also provide assistance and training to borrowers and set up a repayment plan. This information is posted on the website and/or e-mailed to the original lenders if they permit to be contacted. When lenders get their money back, they can support someone else, donate to Kiva.org to cover operational expenses, or withdraw their funds.