Kiva Loan Update

I have received two update on my Kiva loan over the past week.  The first was that Jean Paul Aho has repaid another $74 installment on his loan, thus repaying 20% of his initial $1,100 loan.  Of this, my loan was only $25 as an initial test to see how well this program works.  Only when the entire $1,100 is repayed will I get my loan back. 

From what I can tell so far, there is zero percent interest being charged on this loan.  Either that, or Kiva is keeping the interest a their brokerage-like fee.  This will definitely prevent me from loaning a large amount.  Over time, my reinvested $25 will never grow and at some point, the $25 will go to someone who defaults on my loan. 

The second update I received was a note about the progress of the business behind the loan.

Aho Jean Paul is still selling plantains with his mother, and things are getting better in their business. He used the loan he received to purchase more plantains, and diversify their activities by selling dried peppers and other products which improved his profits. His customers are very satisfied with the quality of his products. He thanks all KIVA lenders for their help.

This is very cool and interesting to see.  The personal flavor and touch is what makes these loans actually worth anything in ones mind.

No related posts.