Though I haven’t posted about it in a good while, our KIVA loans continue. While there is much in the world we can do nothing about, and many places where our “mite” would be meaningless, or sucked off into the pockets of dictators or greedy officials, at KIVA we know and choose the people we loan our money to, and each month we see their repayments.
This month our loan goes to Jane, a married woman who lives in the Eldoret, Rift Valley, Kenya. She has three happy children. She describes herself as honest.
Jane applied for a 40,000 KES ($400 US) loan through KIVA’s Kenyan partner, the SMEP Microfinance Bank. KIVA lenders, like ourselves, underwrite the loan with amounts of $25.00 US or more, plus a fee of $3.85 to support the cost of administering the loan, until the loan is guaranteed. Over time Jane will pay the loan back with interest, which covers SMEP Microfinance Bank’s costs of administering the loan.
Microfinance Banks all over the world, including the USA, loan small amounts to those who live in poverty and cannot qualify for credit at major banks and lending institutions.
Jane operates a small grocery where she sells fruits and vegetables. She has run this business for over six years. It’s located in a good area, and her primary customers are locals from Eldoret.
She describes her biggest business challenge as inadequate working capital. She will use the 40,000 KES ($400 US) loan to buy more fruits and vegetables and pay her children’s school fees. It is very important to her that her children receive good educations.
This is her second loan with SMEP Microfinance Bank. She managed to repay her previous loan successfully. She will use the anticipated profits from this loan to expand her business.
We enjoy working with KIVA, and encourage everyone to give it a try.