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Originally Posted by tmvijai
I am also hoping the MFI's don't charge hefty interest rates for their profit and turn away the entreprenuers. It spoils the whole purpose. KIVA might/should regulate their rates otherwise it will be their choice to charge any rate.
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They have this section on their 'Information for Prospective Field Partners' page:
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In order to become a Field Partner with Kiva, a microfinance institution must, at a minimum:
Serve at least 1,000 active borrowers with microfinance services
Have a history (at least 2-3 years) of lending to poor, excluded, and/or vulnerable people for the purpose of alleviating poverty or reducing vulnerability
Be registered as a legal entity in its country of operation
Have at least 1 year of financial audits
We also prefer an MFI have a profile on the MIX Market.
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So I think that policy of having at least 1,000 active borrowers, having a history of lending to the poor for poverty alleviation, etc. should help to avoid Kiva partnering with disreputable MFIs. They also display the average interest rate for borrowers with their Field Partners and for borrowers with other local lenders, so I think that's another good element of transparency.