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A New Way of Giving

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  • Description

    Kiva.org founder Premal Sha breaks down how his online lending platform makes loans to entrepreneurs.

  • Duration 3:44
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Charity.

I wonder it.

This money really helpful if people are behind it just -- Bureaucracy salaries -- -- a new way of fundraising aims to address that worry a company called keep not connects Americans who want to help someone in poor countries.

Who want a -- This farmer in the Philippines asked for 200 dollars to buy fertilizer -- her firm.

This woman in Togo Africa asked for a -- expand her business selling bags of salt.

Sounds very nice but.

His second who keeps track of the money -- -- I know it really goes to those people and what are the odds that I'll get paid back its call alone.

We'll keep this founder of prima all shot joins us now from San Francisco so -- -- -- -- I don't get scammed defying gives through your -- Well we -- Cuba spend.

Our time making sure that the loans on the web site that are posted.

Are legitimate.

We.

Through three -- the first is.

We -- local -- partners around the world to make sure that there legitimate organizations that are ones who are taking photos.

Policy of the business plans.

You know the women and men that you talked about.

A farmer in the Philippines.

A woman who wants to buy.

-- for dairy business in Kenya.

The way they get up until website as a local field partner and we that that local field partner that we follow up by auditing that -- partner.

Make sure that.

The data on the web site is actually true and when it's not true.

We make veterans turn on the website and we shut down natural partner and a third thing and this is what's exciting about a loan -- a donation.

Which is the proof is in the -- as you start getting repaid on Cuba.

You know that that business has actually.

Earn enough money to pay you back and it and when you can get repay you can withdraw that money back your bank account or -- lend it to another entrepreneur.

Around the planet.

And looking at these businesses in the distance involved I would think most of the people don't get paid back.

Well actually in the last seven years the repayment rate is 90%.

On the web site.

98%.

Of total loans get paid back -- mean that's.

It's hard to believe what -- Oftentimes the -- people on the planet to 2.5 billion people who are underserved by banks and who live on less than two dollars a day.

They don't have collateral.

And they don't have credit scores like a lot of us here in the United States house.

However what they do have is they know their friends neighbors and their village and they self selected to groups -- say eight.

And then all eight of the women and typically loans -- -- women on the keep a website over 80% of loans go to women.

Those women basically we'll pick people that they trust and a neighbor.

Neighborhood and they basically if one of the -- women with say her cow dies and she can't repay the loan.

The other seven women will chip in and cover her loan and the reason why is all eight.

Of those women and their future loans depend on everyone came back on time.

It's -- that's placing high repayment rates in micro finance.

And it's also a testament to the working poor which is if given the opportunity to get access to capital.

It's their lifeline out of poverty oftentimes they take it very seriously they -- -- money with care and they know that -- can get access to future loans if they pay back the current one in.

I congratulate you when they he started -- not that long ago in 2005.

And yet already the -- -- Hundreds of millions of dollars.

857000.

Lenders -- more all the time thank you Primeau shock thanks.

Now another site call.

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