Kiva.org, one of the pioneers in micro-lending to entrepreneurs, is entering the educational space today, launching the pilot program of student microloans on the platform.
Kiva is a peer-to-peer lending site that began as a way to facilitate micropayment loans between citizen lenders and extremely low-income entrepreneurs in developing countries, Through Kiva’s platform, anyone can loan $25 or more to support an entrepreneur and the specific progress of the loan can be tracked from initial funding to repayment. Upon receiving repayment, lenders can withdraw their funds from Kiva or lend again to another entrepreneur, thereby continuing the lending cycle. → Read More
The microfinance model has proved to be a valuable way to raise funds for entrepreneurs all over the country, as exemplified by the success of Kiva. Seattle-based Vittana is taking a similar approach to helping fund education in developing countries by allowing you to lend directly to students in the developing world. The idea is to bring student loans to the developing world through the power of person-to-person microlending. Today, the site is existing its beta period.
Vittana partners with microfinance organizations located in developing countries to donate to students in need of funding. Loans for students range from $200 to $1,500, are then funded by individual lenders, via $25 donations or more, on the Vittana website. One hundred percent of the loans are given to the student. Launched in beta last May, the Vittana community has made over $110,000 in loans to nearly 200 students around the world, who are now getting their degrees. Thus far, Vittana has programs in Mongolia, Nicaragua, Paraguay Peru and Vietnam and plans to expand to India and countries in Africa soon. And Vittana students have had a 97 percent repayment rate. → Read More
