I wanted to write a quick follow-up post to this one I wrote last year about the micro-credit organization Kiva.org. In May of this year I lent $100 to Farzhana Mosah Khan, a tailor in Afghanistan:
Farzhana lives in district 17 of Kabul, Afghanistan. She is a tailor. She is married and lives with members of her family and she wants to help her husband support her family. She wants to take a group loan to expand her business and buy new machines because she wants to send her children to good schools to be educated. She hopes that if she works hard to be a good business dealer in the future she will make a good monthly income for her family. [Link]
The total loan amount requested by Farzhana was actually $175, which means that another lender provided the difference. Farzhana needs about a year to pay back my loan (interest free). This isn’t a charity. You get your money back but simply have to forgo the interest. What that means is that if you already have a “charity portfolio” that you give to every year this isn’t really another charity to spread you thin.
I decided to check out who the other lender was and his page documents the tremendous success he has seen during his involvement with Kiva. He gets paid.
Farzhana posted the first installment of her loan ($22) in June. I think I am going to make some more loans. Need a demo? Check it: