[ GNU/linux kiva lending team] | [Sustainable Chickens kiva lending team ]

microfinance and microlending

The best known quasi-p2p microfinance group is Kiva.org.
Note: Kiva has an Amazon wishlist

My goals

Although I have limited means, I do have a few challenges to myself.

Met goals

Missed goals

  • work up to $250 of capital loaned by the end of 2010. couldn't do this one on time.

    My portfolio management philosophy

    1. loan wisely so the capital is preserved
    2. help people

    This may seem out of whack. Why is capital preservation #1 and helping people #2? It's a goose that laid the golden eggs scenario. If the loan capital is gone then I have nothing left to help people.

    Since no interest is paid to Kiva microlenders there is no compounded increase in working capital. This makes stewardship of the capital critical; unless you pump more into it the amount can only decrease due to the (approx 2%) default rate. So I pick lending orgs with acceptable default rates, and prefer loans that will start paying back sooner and with lower delinquency rates.

    To help keep my head wrapped around it, I think of it like running a microfoundation.

    How I pick borrowers

    • risk rating of the local lending partner. If I lose my working capital then I won't have money to lend. Easy peasy.
    • something in common: raises chickens, cows, goats. Uses Linux. Stuff like that.
    • in a geographical area I would like to support. So far I haven't found anything in Liberia or Iraq but I would like to (update: found 'em!) I am also interested in lending to the poor in the US, but due to the standard of living here the small amounts I can lend don't go as far.
    • working in a field I find particularly human (baking, barbering, teaching) or capitalistically productive (retail, repair, transportation)/

    / GnuPG public key

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