Kiva Microfinance and the Future China - Essay Example

KIVA MICROFINANCE AND THE FUTURE CHINA Introduction Kiva has a number of prospective benefits to the people since it is the dependable basis of credit. It is believed that a huge population of people served by Kiva does not have access to any trustworthy source of credit especially those living in the remote areas. . The Kiva micro-finance institution grant resources and financial support to the borrowers who are seriously in need of their services. In Kiva micro-finance, women lead in terms of percentage borrowing.

This is because they use the money borrowed to solve some of their family problems. Micro-finance also enables a country to improve on the economic status. With the high rate of unemployment globally, people from rural or remote areas have been encouraged to borrow money from Kiva micro-finance to help them come up with profitable business that can enable them meet some of their basic needs (Sinclair, 36). Challenges face by Kiva micro-finance The major challenge faced by Kiva micro-finance is the emergence of other organizations that deal in similar same services it offer.

Government policies had been established to permit loan granting organization leading to business competition. This calls for vigilance on how Kiva invests their money or grant loans. The sole reason for the establishment of many loans granting corporations is to help the country grow economically (Sinclair, 36). These have allowed lender borrow large amount of money as compared to other days. This is because the law charges the same interests between 3,000 and 10,000 thus lenders give out large loans so as to get high interest in return.

The setback has resulted in irresponsible money lending with Kiva since it is not logical for a poor person to borrow one million to start a business because there is no guarantee that the money will be refunded. It is noted that 20% and below of the money given out as loans serve the rural population whereby it is the farmers and small scale business people who benefit a lot from this micro-finance organization. Conclusion In conclusion, a lot of development is expected in Kiva micro-finance to help the eradication of poverty globally.

Kiva micro-finance is working with various nations to ensure that people are encouraged and taught some of the basic enterprenueal concepts. Due to the population increament, Kiva aims at providing loans to the jobless to help avoid an increase in crime cases. Loans help those with enterprenual skills meet some of the long-term goals. Work Cited Sinclair, Hugh. Confessions of a Microfinance Heretic: How Microlending Lost Its Way and Betrayed the Poor. San Francisco, Calif: Berrett-Koehler Publishers, 2012. Print.