“If you have ever wondered what has kept me on the road for over 1000 days, I will give you a hint: it’s not the ruins and the beautiful landmarks. It’s the bumpy-road rides to remote villages like this where a group of 13 women take a loan of 175 dollars….”

I thought no travel writer’s going to put that in black and white (at least not that I read about, and I read a lot of travel blogs). Yes, its not the ruins and the beautiful landmarks, but the bumpity road rides and the mud the inclement weather, the prospect of not knowing where to put up for the night and the mosquito bites. This IS what makes travelling fun!

Regarding Kiva, we have worked with Kiva Fellows and Kiva’s local microfinance organization partners (MFI) in Guatemala, Nicaragua, and Ecuador. Their model is simple and transparent. They find local MFIs in countries around the world to partner with. The MFI has to meet a certain set of criteria to become a partner. Online, each borrower has a photo and a profile so you can decide to whom you want to loan money. And, it’s not a donation – you get the money back in a year (and then you can decide whether to take it or reloan it).

What I have liked about the local Kiva microfinance partners I have met is that they seem to balance well the financial (sustainability/profitability) and social goals of microfinance. For example, the MFI in Ecuador provides capacity training (from business skills to family communication) once a month to its borrowers at loan meetings. The loan officers know their clients well.

Yes, I would recommend Kiva as a way to get involved with microfinance. Even with the recession in the States, they are breaking record numbers each month. It’s impressive.

@Jake: Thanks for sharing United Prosperity with us. It’s an organization I hadn’t heard of before. Sounds like it is also doing some great work.

@Pete: It is incredible to see how small amounts of money invested properly can go so far. I remember a Kiva borrower in Guatemala bubbling with pride over her Kitchen Aid mixer, something most people put on a wedding registry and barely use. She couldn’t stop talking about how much it helped her pastry and cake business. I’ll never look at a Kitchen Aid mixer quite the same way again.

@Nora: Glad this piece helped get you even more interested in microfinance! While not every microfinance program we’ve seen has produced such financial and social results, microfinance to me is still a great – and many times sustainable – for poverty alleviation

@David: Stay tuned for the rest of the series! The next day we visit another village where microfinance has been around even longer – we were blown away what six years and a small amount of capital could do for a community.

I was also wondering if the two of you know much about Kiva. It’s come up a few times in the last week in things I’ve been reading and I’m curious if you’ve done any work with Kiva or know anything about how that microfinance program works.

As always, thanks for the great post!