Kiva offers microloans accessible to individuals looking to support livelihoods, from as little as ሲባ Birr 1,400 (about $25). People can select a borrower based on interests such as women entrepreneurs, refugees, or climate advocacy.

Because Kiva’s microloans are crowdfunded, there’s no traditional interest rate for lenders. Instead, borrowers may pay small fees to field partners. As an independent reviewer, I found that 100% of each contribution is sent to fund the loan recipient.

The term of each loan varies, typically from 6 to 36 months, and the schedule is displayed clearly prior to contributing. Repayments are made to lenders as borrowers recoup their investments or businesses grow.

The process is transparent, straightforward, and designed to support both lenders and borrowers on a global scale, including communities in Ethiopia. It’s appealing for those wanting both to make a difference and support sustainable entrepreneurship.

How to Apply: Step by Step

1. Register for a free Kiva account online. 2. Browse abundant borrower profiles by region, sector, or story. 3. Select the borrower to support and loan amount (minimum ሲባ Birr 1,400). 4. Complete payment via a secure platform, often PayPal. 5. Follow your loan’s progress and receive repayments as the borrower succeeds.

Key Benefits

One significant benefit is that lenders can get involved with minimal funds, supporting meaningful projects with as little as ሲባ Birr 1,400. Lenders may relend repayments to maximise impact.

Borrowers benefit from quick access to capital, flexible repayment terms, and the support of a global lending community. With a strong loan repayment rate, over 96%, the Kiva ecosystem has shown remarkable trust and reliability.

Things to Consider

While Kiva does not pay interest to lenders, it is not a traditional investment platform. Repayment, although likely, is not guaranteed. There’s a small risk of default by borrowers.

Another aspect is that some field partners may charge fees or interest to borrowers, which could affect actual received funds. These costs are fully disclosed on each loan listing prior to support.

Verdict: Is Kiva Right For You?

Kiva delivers a unique opportunity to make a tangible difference for entrepreneurs and families worldwide, all through small, direct contributions. Ethical, impactful, and accessible, it suits individuals seeking positive social returns.

I recommend Kiva for those wanting their funds to empower others, especially in communities where access to finance is limited. If you’re after traditional investment returns or strict guarantees, this may not be the ideal fit.