Since we found out that Kiva’s international microloan partners were charging usurious annual interest and fee rates of often more than 50% and sometimes more than 100%, we halted our donations to Kiva and started issuing plain old micro-grants to international charities instead.
But we still have a balance at Kiva as those old micro-loans are repaid. So we are putting that balance into the only Kiva loans we can find that charge no interest: through the ADEPHCA program in Nicaragua. ADEPHCA lets loans default sometimes rather than loan-shark, and we’re cool with that, since that means eventually our Kiva balance will go to zero, and in the meantime nobody will be impoverished by exploitively high-interest loans.
Our latest zero-interest microloan goes to Jose Antonio Molina Pineda, who will use the money to buy parts for his bicycle repair shop.