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Kiva - Loans at coffee origin.

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  • Kiva - Loans at coffee origin.

    Many CS'rs would have heard of Kiva and we have had discussions about their model over the past 10 years but never got started, well that has just changed.

    For those that don't know Kiva it's a clever way to crowd source funds for microfinance loans. The lenders are mostly "field partners" on the ground who are in rural and regional areas and understand the need and the risks. Typically these borrowers don't go close to meeting lending criteria of the traditional banks but about 95% of the people who have borrowed money do pay it back. They just need a loan to get going.

    When borrowers repay their loans the payments come back into the Kiva account and we can loan the same money again to someone else.

    We have decided that FairCrack can fund some loans at coffee origin. This should have a multiplier effect of the FairCrack goodness over time which will in turn reach many more people.

    We have just created an account and a "lending team" on Kiva so you can join the team to follow the progress of the projects. The specific loans that are provided via FairCrack will also appear in the FairCrack page (converted to AU$) along with a link to Kiva details.

    Team CoffeeSnobs FairCrack:

    The first couple of FairCrack Kiva loans have just been made.

    1: Hillary a coffee grower from Kantozi Kitagwenda in Uganda was loaned US$275 to purchase coffee from other local farmers for resale.

    2: Sheila from Tilya Women Group was loaned US$450 to purchase coffee seedlings to expand their crop in Eldma Ravine - Kenya

    Join the CoffeeSnobs FairCrack team and search for loans that will help people at coffee origin. If you want to suggest a particular loan then please post the link in this thread and we will have a look at it. Obviously not everything will be fully funded but we think that even with part funding many people could be helped to help themselves via FairCrack Kiva loans.

  • #2
    Another awesome FairCrack project! I see a huge potential for some great give back here.

    Java "Loan on!" phile
    Toys! I must have new toys!!!


    • #3
      Great initiative!


      • #4
        Joined. Great idea Andy


        • #5
          I to have been providing Kiva loans to coffee farmers in Nicaragua for a few years now - works well, and after repayment I loan I out again. Small admin/processing fee each time only needed.



          • #6
            Nice one GrahamK, good on ya. We were a little slow to the party but we got there eventually.

            When I first looked at Kiva they were pimping it via MySpace and looked like they wouldn't see the year out. It was a very different looking organisation way back then. It's good to see how well they have adapted and evolved over time into a sustainable model with feedback in all directions.


            • #7
              Kiva do excellent stuff. Will be interested to check out the link further tomorrow.


              • #8
                I've been looking through the loans relating to coffee and this one jumped out at me. A young man just really starting his independent life who is getting into the coffee growing business. Below market interest and he must be doing something right as the local group considers him to be a relatively low risk. I'll toss it out there as a loan to consider making.


                Java "Go Delmer!" phile
                Toys! I must have new toys!!!


                • #9
                  Good find Java.

                  I think some of those "end of term repayment" loans might struggle to get funded but for farmers working their crop they only get paid at the end of season so end of term is a necessity... and something traditional banks would most likely baulk at too.

                  FairCrack to the rescue!


                  • #10
                    I'm impressed! Never heard of it but think it's a great thing to be part of. It would be pretty awesome to loan someone the funds to get started them have there beans in beanbay to buy


                    • #11
                      Having a look through... any thoughts/suggestions as all the one's listed above are fully funded.

                      * - Nic - crop maintenance
                      * - Guat - ag supplies, crop maintenance and labour
                      * - - - - Honduras farm improvements / yield improvements


                      • #12
                        Originally posted by matth3wh View Post
               all the one's listed above are fully funded.
                        Yeah, that's because FairCrack funded them!

               Funded Andres in Nicaragua
               Funded Antonio in Guatemala
               Funded Santos in Honduras
               Funded Isauro in Honduras
               Funded Juan in Honduras
               Funded Jose in Honduras

                        May their coffee trees grow tall, healthy and happy!
                        (I'll update the FairCrack page over the weekend)


                        • #13
                          Fantastic. I've been a Kiva lender for 10 years after i got a gift certificate. I've relent that money and more 40 times.


                          • #14
                            Just joined and supported a few coffee projects. Kiva seems like a great concept and it is nice to see Andy leading the way and encouraging us to help too.
                            Do people think it is better to try to spread the loans (say 4 x $50) or just one loan to increase that particular loans chance of getting fully funded?
                            These are the loans I chose.
                            G.s. Amor Y Paz 2 Group
                            Grupo Los Caballeros De Tzamjuyup…
                            Juan Felipe
                            José Angel


                            • #15
                              Originally posted by johnandcass View Post
                              Do people think it is better to try to spread the loans (say 4 x $50) or just one loan to increase that particular loans chance of getting fully funded?
                              I have had the same thoughts but don't really know the answer.

                              The 4 projects you have found are all fully funded so I guess it doesn't matter too much, it appears most good projects get full funding before they expire. The other thing to realise is many of these projects are already funded by the lenders on the ground who have taken the funding from their existing pool and rolled it over when the Kiva page is posted. Funding a project can also give a lender back their pool to it lend again.

                              Below are the projects that FairCrack funded this month...

                              Juan Nicaragua
                              to buy supplies to increase his coffee production

                              Maria Honduras
                              to buy fertilizers for her coffee

                              Otoniel Nicaragua
                              supplies for his coffee plantation

                              Rafael Honduras
                              to buy fertilisers and to pay labour costs to help with his coffee farm

                              Jose Honduras
                              fertilisers and pay for the cleaning of his coffee crops.

                              Jose El Salvador
                              to buy insecticides, foliar, and to pay young men to help him plant coffee in a short amount of time.

                              Willian El Salvador
                              to buy a small mill to grind coffee, so can continue earning income to fund his children's education.

                              Lorenzo Guatemala
                              to buy a 'cuerda' [almost an acre] of land to cultivate.

                              Moses Uganda
                              to buy farm inputs like manure and seedlings and coffee to sell.

                              Santiago Honduras
                              to seed, fertilise and expand their coffee crops.

                              Dollar donation amounts above are USD and a total of US$8300, I have put straight conversion to AUD numbers in the FairCrack stats but will need to update those to include the end of month fees we will get on the dollar conversion (not too bad as PayPal wear their own fees for Kiva projects and we only get some bank exchange fees added)

                              Well done CoffeeSnobs everywhere!