US-based nonprofit crowdfunders Kiva Microfunds, which raises money for microfinance institutions (MFIs) to on-lend for various purposes, and Vittana, which raises funds for MFIs to on-lend for higher education, have formed a partnership to post Vittana’s student loan fundraising requests on Kiva’s website starting on March 31, 2014. This deal will allow Vittana’s MFI partners access to Kiva’s network of lenders. Kiva is an online portal that raises money to backfill loans made by MFIs by allowing individuals to browse profiles of microentrepreneurs and issue loans as low as USD 25. Vittana will no longer offer a lending platform after March, but will focus on providing technical assistance and product development for its partner MFIs. Lenders using the Kiva website do not earn interest.
As of 2012, Kiva has raised funds for loans totaling USD 383 million that have been disbursed by 173 MFIs and similar organizations in 64 countries. Vittana reported total assets of USD 2.4 million and has partnered with 18 microfinance institutions in Africa, Asia and South America to provide loans to approximately 6,000 students during 2012.
By Meraj Husain, Research Associate
About Kiva
Kiva is a US-based, nonprofit online portal that was established in 2005. It allows individuals to make loans to microfinance institutions (MFIs) to backfill loans that the MFI has made to low-income borrowers. As of 2012, Kiva has raised funds for loans totaling USD 383 million that have been disbursed by 173 MFIs and similar organizations in 64 countries. In 2012, Kiva launched a pilot platform, Kiva Zip, enabling users to lend directly to microentrepreneurs in Kenya and the United States.
About Vittana
Vittana is a non-profit fundraiser for microfinance institutions (MFIs) that was founded in 2008 and is based in Seattle in the US state of Washington. Vittana allows people to make loans via its website to support students in developing countries that are seeking higher education. Individuals may lend a minimum of USD 25 via Vittana, and they receive repayments with zero interest from the student following his or her graduation. In 2012, Vittana reported total assets of USD 2.4 million and has partnered with 18 microfinance institutions in Africa, Asia and South America to provide loans to approximately 6,000 students. As of 2014, Vittana is partnering with Kiva to manage its fundraising.
Sources and Additional Resources
[1] Vittana: “Important News: Vittana and Kiva Join Forces,” http://blog.vittana.org/kiva-partnership
MicroCapital, January 4, 2014, “Google.org Donates $3m to Launch Kiva Labs to Crowdsource Funds for Education, Clean Energy, Agriculture,” https://www.microcapital.org/microcapital-brief-google-org-donates-3m-to-launch-kiva-labs-to-crowdsource-funds-for-education-clean-energy-agriculture/
MicroCapital, April 10, 2013, “Online Fundraiser Kiva, Microlender Microinvest of Moldova End Partnership,” https://www.microcapital.org/microcapital-brief-online-fundraiser-kiva-microlender-microinvest-of-moldova-end-partnership/
MicroCapital, December 16, 2011, “Vittana Receives $250k Grant from Google to Expand Online Lending for Education Microfinance,” https://www.microcapital.org/microcapital-brief-vittana-receives-250k-grant-from-google-to-expand-online-lending-for-education-microfinance/
MicroCapital Universe Profile: Kiva
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kiva
MicroCapital Universe Profile: Vittana
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Vittana
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Grameen Crédit Agricole Foundation Loans $3.2m to Faten for Microfinance in Palestine
- MICROCAPITAL BRIEF: Kiva Refugee Investment Fund Lending $1.5m to FINCA Guatemala to Support Returning Migrants
- SPECIAL REPORT: The Business Case for Education Finance #EMW2023
- MICROCAPITAL BRIEF: Cerise+SPTF Updates Social Performance Indicators (SPI) Online Platform
- MICROCAPITAL BRIEF: OPEC Fund Donating $1m to UNCDF to Boost Energy Access, Reduce Emissions, Starting in Madagascar, Tanzania