Fastlane Team @ Kiva.org

[andviv]

We did a Kiva project in my Geography class this year. My pitch won and we are giving our loan to someone in Ecuador

I'd love to read more about your pitch.... if you don't mind sharing.

 

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[Cowboy35]

I'd love to read more about your pitch.... if you don't mind sharing.

It was awhile back but our main selling points on Ecuador was

*Hydroelectric Power
*USA is #1 Trading Partner
*Petroleum
*Tourism to Ecuador is increasing
*Rain Forests
*Stable Economy

Only major negatives we talked about was Cocaine going back in forth from Ecuador to Colombia but we gave that a positive spin

 

[andviv]

Team Fastlane just did another loan...

Kiva - Ricardo Andres

This loan is just above 50% of funds so the guy could be getting his loan soon.

 

[andviv]

By the way, there are some free trials still available, just in case you want to lend without using your money... and see how it works.

Of course, the repayments go back to the one funding the loan, but you can see how it works...

Kiva - You're invited to Join Kiva (and no, I don't gain anything by you using that referral link)

About Free Trials

What better way to try Kiva than to try it for free? Invite your friends while supplies last. Free trial loans are available to the first new users who join Kiva through this promotion and make a free trial loan.

These free trials will be financed by friends of Kiva, allowing the new lender to make one $25 loan free of charge. These free trial loans are disbursed to borrowers in the same way other loans are disbursed on Kiva. However, since the sponsor is funding the free trial loan, any repayment funds from the free trial loan will go back to the sponsor, not to the free trial lender. New lenders invited during the promotion may choose to use their own funds to make a loan, in which case repayments will go back to the lender.

Supplies of free trials are limited to one (1) per new user, and will be made available on a “first claimed” basis.

 

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[Runum]

Team Fastlane just did another loan...

Kiva - Ricardo Andres

This loan is just above 50% of funds so the guy could be getting his loan soon.

It is 78% funded now. Thanks Andres from bumping this up.

 

[kwerner]

So I went on to Kiva to check my account today and to be honest, I'm pretty disgusted.

I noticed something on there I've never seen before... a bunch of people from the USA asking for loans. WTF??

I though the mission of Kiva was to "alleviate poverty", helping entrepreneurs in poor & undeveloped countries; to give them a chance at a better life for them and their family.

Not helping some guy in the US pay for his franchise license
or paying for this lady's website development
or paying for this dude's Google Adwords campaigns
or paying for this guy to re-design his social network website.

None of these scammers are in poverty and have no business asking for loans on Kiva, IMO.

This totally hurts Kiva's credibility.

[/end rant]

 

[andviv]

I noticed something on there I've never seen before... a bunch of people from the USA asking for loans. WTF??

They got too much pressure to "help others here as well"

Good thing you decide who to loan the money to, so it is up to you and me to allocate the money the best way possible.

In another unfortunate piece of news, I've got the first "delinquency" for one of my loans... Some late payments going on at this time.

Will lend more soon though.

 

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[speedyexe]

This Kiva is a great website i didnt know about existing it. Its great idea that helps others.

 

[Kak]

So I went on to Kiva to check my account today and to be honest, I'm pretty disgusted.

I noticed something on there I've never seen before... a bunch of people from the USA asking for loans. WTF??

I though the mission of Kiva was to "alleviate poverty", helping entrepreneurs in poor & undeveloped countries; to give them a chance at a better life for them and their family.

Not helping some guy in the US pay for his franchise license
or paying for this lady's website development
or paying for this dude's Google Adwords campaigns
or paying for this guy to re-design his social network website.

None of these scammers are in poverty and have no business asking for loans on Kiva, IMO.

This totally hurts Kiva's credibility.

[/end rant]

Today's American that wants everything handed to them also probably has higher deliquency rates.

 

[Runum]

30th loan made, 319 loans from Team Fastlane

Kiva - Nerida from Peru

 

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[Nick]

Good thing you decide who to loan the money to, so it is up to you and me to allocate the money the best way possible.

That is not true. All the money are pooled together and collected and distributed by kiva and their partners how they see fit. You do not personally help any specific entrepreneur (although it is made to look like that in order to make you feel good). All projects that appear on the website have already been financed by kiva, and they just try to reimburse their money and mitigate the risk from you.

All kiva does is lend money to people in 3rd countries money at a very high rate interest of 83% annually (yes, 83% , that is not a mistake)- and have their loans backed by you at no risk to them, while paying you a small percentage of the % interest they collect. (The rest goes to them ).

This is how the process works, according to their website

1.The borrower meets with the Field Partner and requests a loan.
2.The Field Partner disburses a loan to the borrower.
3. The Field Partner uploads the loan request to Kiva, it's reviewed by a team of volunteer editors and translators and then published on Kiva.org

The 3rd step is the story you are being fed. The transaction already happened. Pictures and stories are for the suckers in civilized countries.

Kiva is making some bankers very rich, while some suckers are feeding them.

Read more

http://www.nytimes.com/2010/04/14/world/14microfinance.html?pagewanted=all

 

[andviv]

I almost believed what you were saying but then you said this:

while paying you a small percentage of the % interest they collect.

And you lost me. I do NOT get any % interest at all.

 

[Twiki]

It's true that the transaction has already happened when you make a Kiva loan, it has been pre-disbursed to that guy or gal in Cambodia or whereever.

But half-truths abound, for example this statement: "All kiva does is lend money to people in 3rd countries money at a very high rate interest of 83% annually... while paying you a small percentage of the % interest they collect. (The rest goes to them )." Yup, there is an instance of one field partner in Nigeria where this is the case, and apparently some field partners in Mexico that have crazy interest rates. That hardly makes that statement accurate, especially since neither Kiva nor the US lender gets any interest or keeps any of it (Kiva depends on donations to itself, and they have Charity Navigator's highest rating).

Here is the other side of the story: Kiva - New York Times Article on Microfinance Interest Rates and Profits

Yes it is true that the pictures and story are there to create a compelling narrative, and it works. But there's also the narrative of "rich bankers getting richer", "suckers in 1st world countries", etc. that is just as compelling and just as easy to fall for.

It is also wrong to claim that this statement is untrue: "Good thing you decide who to loan the money to, so it is up to you and me to allocate the money the best way possible.", simply because the underlying transaction occurs in a sequence that is not as simple as it seems. Lenders do have the power to allocate money according to their preferences, and in the context of this thread specifically referring to the (terrible, I think) option of lending to Field Partners who lend to US borrowers.

I too find it disgusting that anyone in the US would seriously consider "competing" for these types of loans with someone in a 3rd world country. I can understand someone in Guatemala needing a loan of a couple hundred bucks, which could make a huge difference in their business, but I once saw a US loan request from 2 software engineers who wanted several thousand dollars so they could quit their jobs and fulfill their lifelong dream of starting up a Dungeons and Dragons hobbyist store where they could play D+D all day long with their buddies (not that there's anything wrong with that). Another example was the lady who wanted to start up her own internet marketing business and needed $8000 to buy a computer and printer. With those kinds of people borrowing in the US, it's no wonder that the US field partners apparently do have higher delinquency rates!

 

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[Nick]

I almost believed what you were saying but then you said this:

And you lost me. I do NOT get any % interest at all.

Maybe you do not get any, but the borrower pays a very high interest rate, and you can not ignore that.

Yes, the 83% percent annually interest is not the standard - was just an example of how much their partners actually do charge - but according to kiva the average is 36%.

When you lend money at 36% annual interest, are we talking about philanthropy anymore, or are talking about shark loans?

You decide, it's your money, but at least think about it. My statements are true, and can easily be verified even on kiva website:

1. The money are lent by kiva and partners before posting the story online, and you do not have any effect on who gets money and who does not (the story on the website is just a narrative with no effect on the lending process).

2. The money are lent at very high interest rate- annual average of 36%. In case it fails, you take all the risk. In case it succeeds, you get your money back, other people get the interest.

If you are comfortable still lending when knowing this, good for you, i just wanted to point this out for all those who may not know this or who think that they are helping exactly the entrepreneurs on the website they lend to at no interest rate.

 

[StompingAcorns]

Sent request to join. Thanks.

 

[ChrisJTurner]

Me too

 

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[emensky]

Good idea will apply

 

[TonyStark]

Sent a request to join

 

[StompingAcorns]

I funded my first loans today (below). There no longer seems to be a rating system, e.g., A, B, C. But there are a number of stats to help you select your risk level. Also there is a matching program through 12/31 for select loans, FYI.

BEWARE that they automatically add a $15 donation to Kiva upon checkout. You have to manually go back and zero it out if you don't want to donate. This is a terrible practice and leaves a bad taste in my mouth. I also despise the usury rates in these countries. However, I can't control that; and I still made the loans.

http://www.kiva.org/lend/998838
http://www.kiva.org/lend/985086
http://www.kiva.org/lend/999461
http://www.kiva.org/lend/991686

 

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[NewJamesBond]

I just want to give this thread a bump. I think our community doing good is awesome. Once I earn a bit more I'll start funding some Kiva loans.

 

[adoredunchin]

I'm pushing this.

Just send a invite and saw this:

Team Activity
This team has not made any loans in the past 90 days that are currently raising funds. Check back soon or make a loan!

We can do better than this.

 

[NetBorn]

wow ... so no chance this to be a pyramid ?

 

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