Abby Normal
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Post by Abby Normal on Jan 7, 2015 13:35:12 GMT -5
DS's social studies class is doing this a a project. They collected a couple dollars from each kid in class at the beginning of the year. Then they "loan" the money through KIVA.ORG to people in various countries. Apparently, his teacher has done this for years. So next year, the classes will have whatever they collect to loan, plus the funds from prior year.
DS has 4 loans that he choose and is responsible for tracking. A guy who wanted money to buy goats, so he could sell the milk. A group that wanted a toilet. A clean water project. And a guy who wanted buy some cows to raise.
They all live in different countries. DS knows them all buy name. He's done some research on the countries and learned a little about what their life is like. He came home last night- XXX have all the funds for their toilet. XXX started selling the goat milk and made his first repayment on his loan.
It's really interested to watch him. Have you done this, or have your kids in school?
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lexxy703
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Post by lexxy703 on Jan 7, 2015 13:46:38 GMT -5
I have never heard of it until now but it sounds like a good thing if the funds get paid back. Are they interest free loans?
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Sam_2.0
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Post by Sam_2.0 on Jan 7, 2015 13:48:57 GMT -5
I thought there were several posters here who did loans through KIVA. I know it's been talked about quite a bit in the past. I think it's great the kids are doing it! What a fun way to build a connection and learn while helping someone else out in the process.
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Deleted
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Post by Deleted on Jan 7, 2015 13:50:02 GMT -5
We give Kiva loans. I always joke it's the gift that keeps on giving, but in a good way lol.
I've never heard of it being done at school but I think it's a really interesting project!
ETA: Yes they are interest-free loans. I have only once not been paid back in full, out of about 15-17 loans.
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Abby Normal
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Post by Abby Normal on Jan 7, 2015 13:53:33 GMT -5
yes, interest free. I had never heard of it until they started this.
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gs11rmb
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Post by gs11rmb on Jan 7, 2015 14:07:52 GMT -5
Sorry to hijack the thread but what is it like in Paris right now? The news is certainly awful.
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zibazinski
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Post by zibazinski on Jan 7, 2015 14:22:19 GMT -5
My Aunt does Kiva. I do Heifer International. Her hundred bucks has been going on for more than 7 years now.
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movingforward
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Post by movingforward on Jan 7, 2015 14:28:42 GMT -5
I have done it quite a few times. I re-loan the money that is paid back plus periodically loan new money.
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Lizard Queen
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Post by Lizard Queen on Jan 7, 2015 14:38:56 GMT -5
I thought there were several posters here who did loans through KIVA. I know it's been talked about quite a bit in the past. I think it's great the kids are doing it! What a fun way to build a connection and learn while helping someone else out in the process. what a beautiful way for kids to learn about people in other countries, with much, much less than us!
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Deleted
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Post by Deleted on Jan 7, 2015 15:15:03 GMT -5
Everyone is in shock, and very scared. Expecting more attacks.
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sarcasticgirl
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Post by sarcasticgirl on Jan 7, 2015 15:18:51 GMT -5
I make regular loans and reloan money as it is paid back to me.
Sent from my HTC One_M8 using proboards
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giramomma
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Post by giramomma on Jan 7, 2015 16:41:51 GMT -5
I like this.
Last summer, I wanted to have DS learn about loans/interest/risk by going through prosper or lending club. We just ran out of time.
I could have it be a family project and have the girls do KIVA and DS do prosper.
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garion2003
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Post by garion2003 on Jan 8, 2015 9:21:58 GMT -5
I was lending for a while, I put in 25 and would lend it over and over. Eventually I added more. But in reality the loans are pre disbursed, so the people you "choose" aren't really getting your money. Once the Opus Dei controversy starting gaining traction I pulled my money out.
I only had one loan default, which wasn't bad over the 20 or so I made. The Kiva website is pretty easy to use, you just need to use a PayPal account.
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Deleted
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Post by Deleted on Jan 8, 2015 9:40:15 GMT -5
Interesting way to educate kids. Scary that the interest rate on the loans is 30%. Why so high when money funded free from investors?
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tloonya
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Post by tloonya on Jan 8, 2015 10:36:05 GMT -5
I was just offered $5K interest free loan by organization that supports healthier life style in Philadelphia. They had given me free commercial freezer last year and they are good people with a lots of good ideas. I am surprised thought that government has money for this. It is Kiva Zip loan. maybe it is different.
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tloonya
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Post by tloonya on Jan 8, 2015 10:39:36 GMT -5
Interesting way to educate kids. Scary that the interest rate on the loans is 30%. Why so high when money funded free from investors? Who said 30%?
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Deleted
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Post by Deleted on Jan 9, 2015 0:53:01 GMT -5
Interesting way to educate kids. Scary that the interest rate on the loans is 30%. Why so high when money funded free from investors? Who said 30%? For each loan it tell you. Read story and look at panel on right. Average Cost to Borrower. I saw one that was 37% per year. I saw several 30%. I know it cost money to run site and match ups, but I don't think this really charity help since they charge the person taking money so high. Lots are rotating loans every year and the person has always paid back. Why they have to pay 30% rate year over year. Profit takers in the middle of this deal. That too high to just cover on administrative fee. Investor take loss on defaults, so what this company doing other than rake in interest? I will look more to see if their financial statement can be found. Anyone here know the story? I think I rather gift the ducks on Heiffer than do Kiva now.
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Abby Normal
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Post by Abby Normal on Jan 9, 2015 12:17:37 GMT -5
Kiva doesn't charge interest but their "micro lenders" do. It doesn't specifically state how much. The numbers you see are the ML's % of profits based on the loans. So I would think it would be skewed by their own donations and fundraising. So if they loan out $1000 and recieve $30 in interest and a $200 donation- it looks like they are at 23% as presented. At least that is the way I read the description. But since you don't have much info on the ML's- yeah they could be charging high interest.
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TheOtherMe
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Post by TheOtherMe on Jan 9, 2015 21:44:39 GMT -5
I have been doing Kiva loans for years. It makes me feel good. And it only costs $25.
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Deleted
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Post by Deleted on Jan 10, 2015 0:03:47 GMT -5
Kiva doesn't charge interest but their "micro lenders" do. It doesn't specifically state how much. The numbers you see are the ML's % of profits based on the loans. So I would think it would be skewed by their own donations and fundraising. So if they loan out $1000 and recieve $30 in interest and a $200 donation- it looks like they are at 23% as presented. At least that is the way I read the description. But since you don't have much info on the ML's- yeah they could be charging high interest. Look clear to me what they say on the ML. Interest & Fees are Charged: Yes Average Cost to Borrower: 32% APR The water projects are no cost to borrower but those are ML partner too. Interest & Fees are Charged: No Average Cost to Borrower: 0% APR I wish there a way to just donate direct to each project without ML to take part of it. Too bad the ML can't be charity.
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sarcasticgirl
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Post by sarcasticgirl on Jan 18, 2015 19:16:50 GMT -5
Today I watched a documentary that made the think of this thread. The documentary is called Living on One Dollar - you can watch it on netflix. It Is about some young guys who go to a small impoverish Guatemalan city and live like the people in the city- on a dollar a day. It brings up micro-lending and shows how those opportunities can shape a community. It is a really powerful watch, if you have time. If I had kids, I'd show it to them.
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