What loans Kiva offers
Kiva has a very basic offering and provides just one type of loan, a micro business loan.
How Kiva works
Kiva definitely isn’t your typical lender. While under its basic terms you can borrow between $25 and $15,000 for up to three years, you won’t be borrowing from Kiva itself. Instead, the provider acts as a crowdfunding intermediary, and your loan request is posted to its loan board. If users of the website like the sound of your business project, they can choose to part-fund your loan. This could mean you end up with dozens of separate individuals or organizations funding your loan.
Since interest rates are set at zero, your backers won’t be making any money from their investment. You’re relying on people’s philanthropic nature, and this type of lending is often used to fund local community projects. This method also means it can take months to get all of the funding you require as you wait for the money to come in.
If you’re struggling to get enough backers, you don’t have to lend the full amount you originally requested and can cash out what you have at any time and begin repayments.
How do I qualify for Kiva?
There are no minimum qualification criteria; Kiva loans are open to anyone willing to use this crowdfunding method.