I don’t mean to knock Kiva, but it is not what Finobra wanted to do in significant ways. Kiva relies on donations for its own survival; only Finobra’s NGO, Khallma, received donations, and only as another source of funding for projects. Kiva used intermediaries that charged the borrower interest, sometimes at very high rates; Finobra used an equity model instead, and Finobra S.A. provided all business services as an intermediary. ¬†And finally, Kiva lenders received no profit or interest, only the unreliable return of principal. Although it has been successful and it is hard to argue with success, I can’t understand why lenders would do this and can’t imagine this model working long term. How long will lenders remain active, driven by a sense of community and philanthropy?

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