Gwangju community helps others help themselves with Kiva
Two roads diverged in a yellow wood… wait, nope. Sorry, yes; that opening is taken already.
Kiva. Maybe you have heard of it? Kiva is a social-change, non-profit organization on a mission to connect people by lending to alleviate poverty. Leveraging the Internet and a worldwide network of microfinance institutions, Kiva empowers any individual with Internet access and a spare $25 (or close to 28,000 won) to help create opportunities around the world. It is called “microcredit” – the crowd-sourced lending of a low-interest loan directly to borrowers who are looking to improve their lot in life – and it is the basic principle that earned Bangladeshi economist Muhammad Yunus the 2006 Nobel Peace Prize for his work in founding the Grameen Bank.
At the time of this writing, Graciela in Camicachi, Peru is requesting $675 to invest in the purchase of small sheep and alpacas, which would provide wool and fiber for her fabric business. A loan of $1,275 will help Vicente in Paraguay buy construction materials to fix his home’s leaking roof. Fortunately, Kiva has built a network for thousands of people looking for help, just like Graciela and Vicente.
According to their website, Kiva.org “envisions a world where all people – even in the most remote areas of the globe – hold the power to create opportunity for themselves and others. Providing safe, affordable access to capital to those in need helps people create better lives for themselves and their families.” Lianne Bronzo, a Gwangju EPIK teacher, agrees. “I like the idea of people from around the globe contributing a small amount of money to a complete stranger. Each small amount can help make a difference in that person’s life, family and community.”
Bronzo is a member of the Gwangju-lending team on Kiva.org, a small but growing group of ex-pats and Korean natives who have, to date, collectively loaned $575 to people in 21 countries. As a Kiva lender, you will not earn any financial interest on a loan, but in addition to the return of your full $25 principal at the end of the designated repayment term (variable, but typically six months), you do earn the return on investment of knowing you have helped someone in a big way, today. That is what you get. That is it. That is what you give.
A friend told me about Kiva in 2007. During the nearly two years he participated in Kiva, he provided a small part of 12 separate loans to people throughout our world wholacked access to conventional banking services, often women. Each loan was paid back to his account in regularly-scheduled increments each month. Ten were already paid back in full, 2 outstanding loans were current. Kiva has a 99 percent repayment rate for $348,752,900 in “already-ended” loans and offers still a fair bit more due diligence throughout the site. I came across Kiva again a few months later, at age 22, remembering the seal of approval from my oldest sister’s cool, tattooed and socially-conscious boyfriend was all the “due diligence” I needed.
Kiva has made the sign-up and subsequent lending process simple. PayPal handles all transactions at no cost to Kiva, so your full contribution goes to the borrower. InMarch 2008, I zealously began three $25 loans to Maura in Peru and Rogelia and Lea Teresa in Paraguay. A month later I got an email notifying me that a portion of each of my loans had been repaid and I could put it all toward another loan or withdraw it back to my bank account. The end, if I so chose.
That was five years and 34 loans ago. I have never experienced a defaulted loan nor delayed repayment and have instead enjoyed the regular journal updates from some of the borrowers who were very grateful.
Chris Morin, an English teacher, studied microfinance in college, but he said that he still had no idea how one might deliver those funds. “Kiva represents everything that is good with social networking,” Morin said. “Kiva facilitates that connection and it’s amazing mainly because it so easily bridges the gap between good intentions and actions – people all over the world recognizing problems and taking action; not governments or banks, but ordinary people lending a hand. It’s beautiful.”
If being part of Kiva strikes your fancy, you are welcome to join our Gwangju team; all are welcome. Simply sign-up and search the “Teams” tab for Gwangju, or use the link below. Sure, you will not receive any interest on that $25, but what was that return on investment mentioned earlier?
… And that has made all the difference.
Still interested? Feel free to register with this link at any time, Kiva.org/invitedto/Gwangju/by/AdamGreenberg, and your new account will receive $25 to make your first loan – therefore, literally zero risk to you whatsoever. Also, the author will receive $25 in his account to make another loan as well, so thank you!
In the past, ex-pats have expressed issues using PayPal in Korea [unrelated to Kiva]. I have been using a U.S. bank account or a KB debit card to fund Kiva loans through PayPal. If you have any trouble-shooting questions, feel free to e-mail me at Kiva@AdamGreenberg.com.