To commemorate Earth Day on April 22, 2011, online microfinance intermediary Kiva announced the introduction of “Green Loans” to provide opportunities for individuals to lend as little as USD 25 to businesses and individuals looking to fund clean energy efforts [1]. Sample projects include solar panels and drip irrigation systems [2].
Lenders may also still choose to fund other sectors such as agriculture and housing [1]. The program has the potential to encourage lenders to develop new credit products such as for farmers to purchase organic fertilizer or for businesses that help families reduce household energy consumption [3].
Kiva field partners are currently located in 60 developed and developing countries around the world. As of April 27, 2011, all of Kiva’s Green Loans had been funded, and money could only be lent for other types of projects.
By Rohan Trivedi, Research Associate
About Kiva:
Incorporated in 2005, Kiva is a US-based online portal for individuals to make loans to microfinance institutions (MFIs), which then in turn make loans to people with low incomes. Kiva partners with microfinance institutions (MFIs) in 60 developing and rich countries. As of April 2011, Kiva reports 915,000 individual lenders, 81 percent of Kiva loans have been made to women entrepreneurs, the repayment rate is 98.7 percent and the average loan size is USD 382.
[1] Marketwire: “Kiva.org Announces “Green Loans,” Extending Its Global Microlending Marketplace to Support Sustainable Businesses, Reduce Energy Poverty”, http://www.marketwire.com/press-release/kivaorg-announces-green-loans-extending-its-global-microlending-marketplace-support-1505624.htm
[2] Kiva.org: “Green Loans”, http://www.kiva.org/green
[3] Fast Company: “Lend To Carbon-Cutting Entrepreneurs With Kiva’s New Green Loan Program” by Ariel Schwartz, April 21, 2011, http://www.fastcompany.com/1749134/kiva-makes-it-easy-to-loan-money-to-energy-efficient-startups
MicroCapital Universe Profile: Kiva, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kiva
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: OPEC Fund Donating $1m to UNCDF to Boost Energy Access, Reduce Emissions, Starting in Madagascar, Tanzania
- MICROCAPITAL BRIEF: SentBe Launches Remittances from US to 50 Countries
- MICROCAPITAL BRIEF: Grameen Crédit Agricole Foundation Loans $3.2m to Faten for Microfinance in Palestine
- MICROCAPITAL BRIEF: Tokyo Offering $900k to Asset Managers, Fintechs to Open “Green Finance” Office in Japan
- MICROCAPITAL BRIEF: Tunisie Leasing and Factoring Borrows $7.5m from BII-Symbiotics Green Bond Program for SMEs in Tunisia