What is Kiva?
Kiva is an international nonprofit, founded in 2005 and based in San Francisco, with a mission to connect people through lending to alleviate poverty. They celebrate and support people looking to create a better future for themselves, their families and their communities. By lending as little as $25 on Kiva, anyone can help a borrower start or grow a business, go to school, access clean energy or realize their potential. For some, it’s a matter of survival, for others it’s the fuel for a life-long ambition. 100% of every dollar you lend on Kiva goes to funding loans. Kiva covers costs primarily through optional donations, as well as through support from grants and sponsors.
“Not only are you empowering people who are living in poverty to make meaningful choices for basic human rights, you are also helping children to understand their responsibility to give back to the global community and appreciate the quality of life they enjoy.” New York times.
Pros and cons of loaning
There are many benefits of this, such as:
- The young man gets a chance to develop his coffee farm
- He can make sure his crops get better support
- We have the satisfaction of helping someone out
However, there are still some things we should take into consideration:
- There is a risk that we might not get our money back
- His farm might not benefit as much as we would like
Looking over both the pros and cons, we can summarize that there are more advantages than disadvantages. There is always a risk in everything we do, but this case is worth it.
Facts about Honduras
Honduras, officially known as the Republic of Honduras, is a republic in Central America. The currency of Honduras is called The Honduran Lempira and the currency code is HNL. In 2010 50% of the honduran population were under the poverty line. In rural areas six out of ten households live in extreme poverty, or on less than 25 US dollars per day. Honduras was declared a heavily indebted poor country by the World Bank and the International Monetary Fund as of January 2012. Honduras is also inclined to experience hurricanes and droughts.
We hope that Kevin Orlando receives a loan of $675 so he can buy fertilizer and pay to maintain his coffee farm to provide it better support and improve its production, and that he and his family gets a better life.