Do I get interest on my loan?Not currently. Providing interest to our lenders is legally complex and we hope to provide this option soon as the regulations of the US Government allow.
Does Kiva.org charge interest?No. Kiva.org does not charge any interest or fees to our Field Partners.
Do Kiva.org’s Field Partners charge interest to the entrepreneurs?Yes. Self-sustainability is critical to creating long-term solutions to poverty and charging interest to entrepreneurs is necessary for microfinance institutions to achieve this. Our Field Partners are free to charge interest, but Kiva.org will not partner with an organization that charges exorbitant interest rates. Kiva.org also requires Field Partners to fully disclose their interest rates.
Microfinance is an expensive business, which is essentially the reason small loans are not provided by large banks. While Kiva.org’s Field Partners do not bear the cost of capital or the cost of default, they do bear transaction costs and currency risk. Charging interest to entrepreneurs enables our Field Partners to bear these costs and achieve self-sustainability.
What are the interest rates the Field Partners charge?We are currently collecting our Field Partner interest rate data, and will make this information available as soon as possible on the individual
Field Partners pages.
Related Kiva Friends Discussions:Paying interest to lenders - pros and consInterest rates charged by MFI's
