Posted on December 19, 2014
Kiva Zip is a pilot program launched by Kiva, the micro-lending website. Kiva became famous for enabling anyone with an internet connection to lend as little as $5 to alleviate poverty. Kiva Zip is a crowd funded, micro-loan resource for small business entrepreneurs, making it possible for lenders to send funds directly to the entrepreneurs they support.
Kiva Zip – Empowering People
While microfinance has helped millions, many people have been left out: Think remote rural villages in Kenya or recent refugees with no credit history in the United States. By making lending easy on the internet, and tying loans to borrowers’ characters rather than their credit scores, Kiva Zip aims to reach the world’s most marginalized entrepreneurs with the financial tools they need to succeed.
Because Kiva Zip operates online and uses mobile payment technologies to move money, it’s able to slash the cost of making microfinance loans. These savings are passed along to borrowers in the form of lower interest rates. In fact, Kiva Zip loans are currently offered at 0% interest with no fees.
Kiva is all about forging connections between lenders and borrowers on opposite sides of the world. Kiva Zip strengthens these relationships even more by letting people send messages back and forth, including words of encouragement, updates from borrowers as they succeed, and notes about how loans have helped businesses thrive.