Quote:
Originally Posted by MikeWaters
I was looking at the FAQ for Kiva. So as a lender to Kiva you don't actually get back any profit or interest, right?
If I put in $100, the max I get back is $100?
I'm not entirely sure what the point is of having individual loanees. Doesn't that just increase the risk? Wouldn't it be easier to invest in the field bank and get a more guaranteed return?
Obviously the point of this is not to make money. But I'm trying to understand what makes sense and what doesn't.
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Right, the maximum you would get back is $100. Any interest on these loans goes to the local microfinance institution. It does not go back to Kiva either. Kiva covers it's expenses through donations other than the loans. They do add a small donation every time you make a loan that you can remove. Donations do not come back.
Kiva actually gives money to local institutions who make the individual loans. You really do not really have control over who is getting a specific loan as it has already been made before you "fund" it. You do decide which areas you want to support and the repayment to you is based on actual loan repayments. More than anything, the individual stories just make the loans feel more personal.
I don't consider this an investment. When I get money back I just use it to fund more loans.
If you were to do this, you could also set-up a Cougarguard group that individual board members join with their personal Kiva accounts.