Because of Professor Muhammad Yunus and the Grameen Bank’s Nobel Prize, we’re pretty familiar with the concept of microfinancing. Lenders pool together to lend small amounts to the borrowers in mostly poorer countries who don’t have access to the traditional bank loan facilities. Over time, the loan amount is repaid. This is an good way to connect people who want to help with people who need help.

One of the more accessible organisations, and certainly one that fully uses the advantages of the internet, is kiva. Kiva describes how its members can participate simply as:

Choose an Entrepreneur, Lend, Get Repaid

A few months ago, around Christmas and New Year, there was so much attention (helped by coverage on Oprah) that there were a shortage of loans requested and lenders were limited to $25 each. Now that the year is underway and the New Year resolution fever died down, things are back to normal. I decided to wait at Christmas, and I find that it was a good decision.

Scrolling through almost 30 pages of loans reqested, the loan amounts requested were small (a few hundred dollars, not many over $1,000). Most of the purposes were to buy goods for resale, retail, transportation, construction, and home improvement. Some are near their target already. I was caught by the entry for a lady in Benin. I have to admit I won’t be able to point out Benin in a map, but it didn’t matter.

I put down $50. Payment is through PayPal (who doesn’t charge their usual fee for kiva). Kiva collects the funds then distributes to the Field Partner for further dissemination to the entrepreneur.

It felt good to be able to help someone. It’s a small amount for me, but if it can help make a difference, then I’m only too happy to do my part. Virginie Bahini, I wish you the best.