Saw this when logging into PayPal just now. Seems like a good / interesting thing to do with some spare money!
Upon completing a loan through this campaign, PayPal customers will receive a $25 Kiva credit, which will be immediately available in their Kiva account. Credits must be lent to entrepreneurs outside the U.S. through Kiva.org. When the credits are repaid, the funds will be returned to the Kiva PayPal Donor Advised Fund to be used in future lending campaigns.
All info at the link
Seems like a deal if you have lost your soul, and would like some cleansing?
Can't cleanse you soul if it's not there.
*Edit: Just looked a Kiva, not going to bash the model here, but just gonna say what a joke.
“Not gonna bash the model here” bashes model here 😂
So basically, you use $25 of your own money to lend to an entrepreneur and then after that, Paypal will give you another $25 to lend of their money and you will eventually get your money back via loans. I wonder if you get Paypal's money as well?
no. it will be returned to PayPal.
Regardless, seems like a good deal. You help out someone, feel good about it and get the money back.
Actually it says it will be returned to your lender account to re-lend, from what I read.
You get your $25 back if they are succesful in repaying and the bonus remains in the kiva pool.
I like this idea, actually helping people to progress in life and not just hand outs + you might gain some interest, 96.9% of investments get repaid, that is pretty good.
And your cleaned souls should get highly rated ozbargain deals without missing it.
There's no interest to earn, it's 96.9% you'll get your original money back
*Repayments on your loan made with the promotional Kiva credit will be returned to the Kiva PayPal Donor Advised Fund to be used in future lending campaigns.
Not sure if that means it goes back into your account to lend, or if it goes back into paypal’s pool of donation money as future credit for others to re-lend.. either way it’s approx the same thing I guess.
Do Kiva and/or Kiva lenders receive interest on Kiva loans?
Kiva never collects interest on loans and individual Kiva lenders do not receive interest from loans they support on Kiva.
So basically they are asking for money to help entrepreneurs that you won't get any interest back and have about a 3% chance you won't even get your money back.
Yes normally they charge around 20-30%
Its high but they are loaning to people in the third world and how they get there 98% of all loans are repaid stat.
Basically. Which is 97% better than most donations! Plus you get to dictate where $25 of paypal’s money goes to help someone as well :)
yea definitely better than donations and kickstarter
Please correct me if I'm not understanding the model correctly, but it looks to me like Field Partners (rather than lenders) actually dictate who gets a loan and who doesn't.
Don’t forget to pay with 28Degrees in USD for more competitive exchange rate, since this is USD
How do I sign up to receive these loans?
Move to Tajikistan and upload a crappy photo of yourself frowning.
Kiva model is better than most… Forget that you get your money back, you're letting recipients learn how to fish instead of catching fish for them
what if they are vegans?
catching vegan pigs to make vegan sausages.
Seems like a good service. I'm glad that PayPal are backing it.
Terms and Conditions changed. It now says PayPal employees not PayPal customers
This is still at the bottom of the landing page: "Upon completing a loan through this campaign, PayPal customers will receive a $25 Kiva credit, which will be immediately available in their Kiva account."
I've been re-lending on Kiva for about 10 years now. I only put in a small amount of money over time and re-lend it every so often once it's repaid (can take 6-24 months). A few loans have defaulted on some of the payment, but not significantly and I'm doing it with the mindset I may not get any money back. It's not enough to impact my life, but may impact theirs.
I like the idea, however I don't like how the whole thing works. It may be one of the better options around for helping people though.
From what I've gathered, there are lending partners who lend the money to a person, and earn interest on the repayments. They put that loan up on Kiva to have it funded by microloans (us), but we don't earn interest. Smart move by them, but I don't entirely like it. We take the risk, they earn the interest. But in the end it's hopefully helping someone and I'm only risking a small amount.
I would like to know how much interest is charged.
the key point is, banks will not loan to these people. so microloans are their (only?) option.
In the very least, 50% of my money isnt going to someone's annual salary for doing nothing.
Each lending partner has a page you can check their profitability, delinquency rates, etc, e.g. (picked at random) https://www.kiva.org/about/where-kiva-works/partners/435
This one has a profitability rating of 1.8%. Seems the average is actually negatives (-2.13%). The "average cost to borrower" across all partners is 25.66% - not sure if that means they pay on average 25% interest, it's a slightly odd measurement to me.
I agree - this may be the only option, and may be better than other things.
I just feel a slight annoyance that the financing companies are making money while spreading the risk to other people, who don't get any rewards for that risk. I'm not on Kiva to make money, but I'm not here to risk my money for a company to make money either. That said, after checking the above - if the average profitability is that low/in the negatives, then OK maybe these companies need to earn interest just so they can continue to operate, rather than them turning a profit. That's fair.
What’s the deal?