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Kiva is a non-profit organization that connects people to micro-lending institutions around the world. Although there are some borrowers in the United States, most of the loans are for very small amounts in poor countries. The goal is to provide credit to people who have no access or don't qualify for regular lending sources. Since it was founded in 2005, Kiva has loaned over $657 million with the help of more than 1.25 million lenders.

How Does Kiva Work?

Lenders can browse through hundreds of stories of “entrepreneurs” and decide which businesses they want to fund. They then decide how much they wish to loan. The money is provided at no interest to local micro lending institutions which collect the payments to repay the loan. Micro-lending institutions do charge hefty rates, which are required to cover defaulted loans. Typically, Kiva only covers 30% of the loan.

Borrowers don't have to wait for individual lenders to invest in their projects. By the time the story and pictures are on the internet, the loan has already been paid out. Therefore the cash funded by the micro-lending company are not necessarily used to help the chosen entrepreneur. However, repayment is tied directly to the chosen borrower. If the borrower does not make payments, the lender may lose money.

What Are The Interest Rates?

Interest rates range from 20-40 percent, depending on the country, and the policy of the local micro-lender. Lenders do not receive any interest for the money they lend. However, the repayment rate for Kiva loans is higher than 90% so risk is relatively low.

How Much Money Can I Borrow?

Micro loans are usually for amounts of $1,000 or smaller, although larger are available. The Kiva Zip program operates in the United States and gives qualified entrepreneurs loans of up to $5,000 to start or expand their businesses.

Which States Does Kiva Operate In?

Kiva operates throughout the United States and internationally.

What Is the Application Process Like?

To apply for a loan, borrowers must request through a participating micro-lending company. The micro-lending company determines eligibility based on its own approval policy. The funds are disbursed by the micro-lenders, which then takes pictures and write about the “stories” of their borrowers and sends them to Kiva in the hope of getting backing from individual lenders. Although the funds given by lenders are usually not allocated directly to the chosen borrowers, these funds do provide micro-lending companies with additional capital and reduce the cost of loan defaults.

How Is Kiva Better than Other Lenders?

Kiva is probably the most successful micro-lending non-profit. By putting crowdsourcing to work, Kiva has become the eBay for microcredit. Every single dollar “invested” by lenders goes to help borrowers. Kiva doesn't take a cut and doesn't charge local micro-lending partners any interest payments. It can do that because it doesn't pay lenders any interest on their capital.

The best case scenario for lenders is they receive their money back, which they can choose to either reinvest, withdraw, or donate to Kiva. The only catch is that borrowers do have to pay high interest rates to the micro-lending institutions Kiva, even though Kiva does not charge any interest or commission.

SUPERMONEY Disclosure: is an independent, advertising-supported service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Read more...


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    San Francisco, CA 94110 USA
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  Available in 50 states and Washington, D.C.
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Feature Breakdown

No Origination Fee  
No Prepayment Fee  
Origination Fee Starting at 0%
Credit Score Range 300 - 850
850 300
Immigration Status Considered
  • U.S. Permanent Resident
  • Non-Resident
Employment Statuses Considered
  • Self-Employed
Military Status
  • Non-Military
  • Veterans
Minimum Months in Business 0
Verification Documents Required
  • Proof of Identity
Loan Amount $25 - $20K
Loan Term (Months) 1 - 60
APR (Fixed APR) 0%

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