Editor,
I've just finished my first year as a micro-lender. I lend money to business entrepreneurs in Third World countries, and I'm making a real difference in the world.
For years, I asked how I could contribute, but I've also been dismayed by the lack of oversight. I don't want to give $1 to some charity group that keeps 40 cents for overhead, and only 60 cents goes toward the cause.
Then, about a year ago, I saw a special on CNN about Kiva.org. I did some research, and now, a year later, I'm a successful micro-lender. Kiva.org is an organization that partners with local, on-the-ground groups in Third World countries around the world. It seeks out people who have business goals, helps them develop business plans and then posts business requests for money on its Web site.
People like myself look over the applications and decide who or where we want to loan money. All donations are limited to $25 at a time, with business loans starting as low as $200 to help a small shop in Kenya expand.
Kiva.org has partnered with PayPal to arrange for your donation to get to people for free, and people use your money to start or expand their business. The money is paid back over a pre-set term, and you get your initial investment back.
Get content from The Daily Lobo delivered to your inbox
As an investor, I don't receive any interest on the money I lend, and there is some managed risk. But in the last year, I've made loans to more than 20 entrepreneurs, and I have received regular payments back to my accounts without losing a dime. Plus, when a loan is repaid, I can choose to take back my money, or I just reloan the money to another business.
The entire sum I lend goes to the entrepreneur. Kiva.org survives on donations, and PayPal donates all its services for free. I've lent money to people in 14 countries from Uganda to Mexico, and I've helped people start or expand businesses from motorcycle taxis to cattle farming. I get regular updates on the businesses I lend to, and I'm making a real difference in the world.
I invite anyone who wants to make a difference to go to Kiva.org, and check it out. This program has been endorsed by Oprah Winfrey, President Clinton and now by me.
Matt Waters
UNM student
