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We are entrepreneurs (affiliate marketers) who make money by helping others do the same.
The microfinance loan companies partnered with Kiva have loaned an average of $55 million dollars, at an average of 23% interest, with an average default rate of 2.85%. That's an average PROFIT of almost $11 million dollars. Microfinance lending is a GOOD thing, and a worthy cause for your donations.
I even applaud these companies, because they are helping people and have found a way to make money while doing good work. But they are NOT charities. I don't see why a company that has made $11 million dollars -- off of poor people! -- needs more free money from me. Would you donate food to Feed the Children, if they were selling it to starving kids at a 23% markup? With a 23% ROI, these companies can afford to put everything on Visa and still make a profit!
I don't think the Kiva website makes this clear enough, and I don't think these companies deserve free use of your money. If you want to donate to microfinance, go to one of the groups that don't do it for profit, like the Rotary micro*
Originally posted by wylekat
So basically- you DONATE money, which is then LOANED to people at 30-40% Interest???
That makes Mafia loansharks look like saints!! Unbelievable. Obviously, charity doesn't start at home any more, it now starts in a banker's pocket.