Re: Kiva.org - Xmas gift suggestion for ballas
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The loans aren't charity, the money gets repaid and at a rate that crushes traditional banking - Kiva.org has a 99.75% repayment rate.
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This site is awesome, but I don't see how this claim could possibly be true.
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Read the book "banker to the poor" by the bangladeshi guy who won the nobel prize in economics for his experiments in microlending. He started the whole thing in bangladesh and made it very community centered and stuff. His repayment was over 99% as well.
Basically, he structured it so you have to have multiple steps and blocks before you can actually get a loan. You join a community group, and get your loans one at a time. If one person fails to make decent progress toward repaying the loan, then the rest will likely never get loans, so the community pressure is intense. There are lots of community meetings and steps to take and so forth, and everyone knows exactly how everyone else behaves.
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