Vittana, a US-based nonprofit that raises funds for microfinance institutions to lend to students pursuing higher education in developing countries, recently announced that it will cease to operate as an independent organization. Vittana stated that it has been unable to find a “robust business model” that would allow it to function in a self-sustaining manner. Vittana’s partner microfinance lenders that work with US-based NGO Kiva will still be able to lend to the Vittana network of students via Kiva, which raises money online for microfinance institutions to on-lend for various purposes.
During its five years of operation, Vittana has raised funds from individuals via its website to on-lend to approximately 20,000 students around the world via 50 microfinance institutions (MFIs). Vittana additionally has 35 partners in 17 countries.
Vittana reported total assets of USD 2.4 million in 2012. As of November 2014, Vittana will cease to disburse new loans. Lenders can continue to access their Vittana accounts on the organization’s website to withdraw credit balances.
By Ananya Tiwari, Research Associate
About Vittana
Vittana is a non-profit fundraiser for microfinance institutions (MFIs) that is winding down its operations as of November 2014. Founded in 2008, it is based in US city of Seattle, Vittana allowed people to make loans via its website to support students in developing countries to access higher education. Individuals were able to 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. As of 2014, Vittana is not disbursing new loans.
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. From 2005 through mid-2014, Kiva has raised funds for loans totaling USD 587 million that have been disbursed by 269 MFIs and similar organizations in 77 countries. In 2012, Kiva launched a pilot platform, Kiva Zip, enabling users to lend directly to microentrepreneurs in Kenya and the United States.
Sources and Additional Resources
[1] Vittana Press Release, http://blog.vittana.org/
MicroCapital, March 3, 2014, “Crowdfunders Kiva, Vittana Partner to Extend Student Loans for Higher Education in Developing World,” https://www.microcapital.org/microcapital-brief-crowdfunders-kiva-vittana-partner-to-extend-student-loans-for-higher-education-in-developing-world/
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: Vittana
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Vittana
MicroCapital Universe Profile: Kiva
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kiva
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