Kuyper College Business Leadership uses Kiva Loans
March 13, 2017
Kuyper College's business leadership class learns about helping businesses through Kiva Loans.
Marc Andreas, Kuyper's Business Leadership professor, said that the use of Kiva Loans in the class helps his students understand banking and how people start businesses in poorer countries.
Kiva loans is a non-profit company that connects small business owners around the world with individuals willing to lend money. Once payment is made, the lender can loan the same money to another entity.
Andreas uses an account with 1,000 dollars for the class each winter semester. By the time class begins in January, most of the loans from the previous year are paid off and the money is once again available. From this pool, his students can each choose an entity and make a loan to it.
Kiva Loans allows users to choose from many different types of entities, such as social enterprises, business growth, and agriculture.
Kiva works with people in 82 countries, and boasts a 97.1% loan repayment rate. Andreas noted that Kiva allows loans to poorer entrepreneurs. Contrary to conventional wisdom, most pay back the loans fully.
Andreas pointed out that Kiva works with the more communal cultures overseas, boosting the loan payment rate. The loans have very small interest, which all goes to the banks at the locations handling the money.