% for Admin

[Guest]

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[MikeB123]

Sorry if this has been asked before....
I just wanted to know when I loan $25 (for example) what % goes to the actual borrower? What % goes to the admin side of Kiva? Also if they borrow $25 how much do they payback to Kiva?
Thanks Mike

[cpbailey]

Mike,

The entire $25 is due back to Kiva as the borrower repays.  Kiva has an optional donation which goes toward its overhead.  Kiva also gets grants.  Because payments are made to the partners once a month, money can linger for awhile in Kiva's accounts.  This isn't for long, but the interest does add up.

Colette

[MikeB123]

Thanks for the reply Colette. Just to clarify, the borrower will borrow the $25 (again for example) and only have to repay the $25 no more? Kiva's costs are all covered by the interest in the kiva accounts and donations?
I'm new to kiva but I have to say it's a fantastic idea.
Thanks again, Mike

[cpbailey]

Kiva partners with local organizations which generally do charge interest.  However, access to low cost money to lend can help the local partners (MFIs) keep the interest rates affordable.  For many, loan sharks are the alternative.  Partners also must cover their costs.  Each partner has info about the interest rate charged, and Kivabank.org allows you to see the portfolio yield and profitability of the MFI.  Then you can pick loans within your preference.

There are threads about interest rates and the issues involving micro finance.

Colette

[Diane R]

Kiva's costs are all covered by the interest in the kiva accounts and donations?

And just to complete the response, Kiva's costs are covered by donations, bank interest on balances awaiting transfer, and grants.  Nothing is taken out of the $25, the entire amount goes from Kiva to the local field partner interest-free.

--Diane.

[waywardcats]

Just to clarify, the borrower will borrow the $25 (again for example) and only have to repay the $25 no more? Kiva's costs are all covered by the interest in the kiva accounts and donations?
I'm new to kiva but I have to say it's a fantastic idea.
Thanks again, Mike

Hi Mike and  to Kiva Friends,

Just to expound a little on what Colette has already told you, here is the simplified version.

You lend $25 to a loan to an entrepreneur of your choice on Kiva.
You can make the decision when you lend whether you wish to add an additional amount as a donation to Kiva' operational expenses.
100% of your $25 goes to the Kiva Field Partner.*
The Kiva Field partner makes the loan to your entrepreneur for the full amount listed on Kiva.**
The entrepreneur pays back the loan to the Field Partner, plus any interest they charge.
The Kiva Field Partner gets to keep the interest, but pays you back your $25.00.

There are numerous threads here at Kiva Friends discussing interest to the Field partners, and donations to Kiva.  Here are a couple of examples you may wish to explore, but of course your questions are always welcome too.

Interest rates
MFI's Extortionate Interest Rates ... up to 58% !
Kiva Donations (and some thoughts about the Field Partner's Part)

Again welcome,

-Kerry-
*I see Diane has also just reiterated this point.

**There may be some overage to make the total loan amount a multiple of $25.00.  This goes to the Field partners and is paid back during the loan term.

[Diane R]

And note that many field partners provide business training courses, health services, childcare, financial training... and some even put some of the interest paid by their clients into savings accounts for them, which they assume at the repayment of their loan.  For many of their clients, this is the first savings account they've ever had, and it can give them another leg up on a solid financial future.

--Diane.

[MikeB123]

Thanks everyone for the responses. I really appreciate it.
Mike

[Jan & John]

Thanks everyone for the responses. I really appreciate it.
Mike

Woohoo - welcome Mike - another CANADIAN 

-jan-