Micro Financial Savings

Help the World. Feed the World. Save the World.

Loans

Are women awarded loans?

Wed, 01/02/2013 - 3:49pm -- Vince
Women have proven to pay back their loans at the highest rate of all categories often times when organized as part of a group loan, loans are paid back at rates exceeding 99%.  In the developing world, experience confirms that 8-10 women bonded together in the form of a group loan have the highest payback rate of any demographic group and subsequently account for more than 90% of the loans awarded.

How are loans awarded by field partners?

Wed, 01/02/2013 - 3:43pm -- Vince
The loan candidates are screened by our Field Partners who work with groups of people in the local towns and villages to both inform the entrepreneurs about the Microfinance program and to screen candidates who are best positioned to succeed as entrepreneurs. A variety of screening tools are utilized by the Field Partner including the ability to pay back the loan, previous success in running a business or the presence of a solid business plan for new entrepreneurs. 

What interest rate will I earn on my loan?

Wed, 01/02/2013 - 3:18pm -- Vince
Lenders passing through the Micro Financial Savings web site to the Kiva.org site will not earn any interest.  The interest-free loans are often paid back to the lenders at a rate in excess of 99%.  At the end of the loan term, the Lender of the Kiva loan has the option to either withdraw the remaining proceeds of the loan in its entirety or to roll it over as a new loan with a whole new set of loan terms and conditions.  Administration of the loan will be handled by our partner, Kiva.

How big is the average loan?

Wed, 01/02/2013 - 3:14pm -- Vince
Individual loans start at $25 and typically approach $300.  The loan is made to a group of 5 to 10 entrepreneurs each of whom co-signs the loan and agrees to the repayment schedule.  With an average wage of about $2/day in the developing world, even a $25 loan is considered a very sizeable amount of money to a new or small business.  The majority of loans are paid back over a six month period.
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