How do Kiva loans work?
Kiva uses crowdfunded microloans as a force for good, creating a space where people can have one-to-one impact, and together, expand financial access for all.
Still wondering, “But how do borrowers get their money?” or “How do lenders get repaid?”
Let’s follow Margarita’s story to dig into how Kiva loans work from start to finish.
Someone applies for a loan
Margarita needs $1,000 to expand her tortilla business, so she applies for a loan with CrediCampo, a microfinance institution (MFI) and one of Kiva’s lending partners.
A Lending Partner disburses their loan and uploads it to Kiva.org
CrediCampo posts Margarita’s loan to Kiva.org to cover the cost of the loan, with editing and translation help from Kiva volunteers.
MORE ABOUT LOAN DISBURSAL âžś
You lend a little toward their goal
You see Margarita’s story and want to support her business. You lend $25 (or more!) to help crowdfund the full loan amount.
The loan is successfully funded!
Thanks to you and 31 other lenders, Margarita’s $1,000 loan is fully funded!
Kiva sends the funds to the Lending Partner
100% of the loan amount is sent via wire transfer to CrediCampo, who provided Margarita with the capital she needs to invest in her business.
The borrower invests in their livelihood
Margarita uses her Kiva loan to buy corn, gas, and firewood so she can improve production, increase her income to support her family, and keep her children in school.
You get repaid
(Kiva borrowers have a 96.4% repayment rate on average.)
As Margarita starts earning more, she begins sending repayments to CrediCampo, which are repaid to you and other lenders who helped fund her loan. These funds go straight into your Kiva account.
Repeat!
You can relend your funds to support another borrower again and again! Your dollars can travel the world, changing lives one loan at a time.
Ready to get started?
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