By MARK VAGELAKOS
In the modern day, it is an unfortunate necessity for donors to check into the background, employee salaries and even the tax files of charities one contributes to.
In the shadows of such vague and complicated bureaucracy, micro lending websites like kiva.org, a non profit that relies on donations and loans, simplify the charity process by acting as only a conduit between good hearted lenders and disadvantaged entrepreneurs. The best part about this good act is that Good Samaritans get their money back.
Micro lending provides a way for anyone around the world to lend to international entrepreneurs, usually in Africa, Asia and Eastern Europe, whose country either does not have the capability of setting up large lending institutions or discriminates heavily against them. For this reason, micro lending is especially useful for women who are often seen as less than equal to men in business capabilities. Of those receiving loans on kiva.org, 80 percent are women.
While there is a chance that lenders will not give the money back, kiva.org currently boasts a 98.9 percent repayment rate from the $309,323,800 they have lent.
Once entrepreneurs set up their profile, either by themselves or more often through a third party mission group, lenders can provide loans anywhere from $20 to the full amount needed.
The entrepreneurs then follow a repayment plan, usually over a year or more. Their repayment determines the possibility for future loans.
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