Bicycle Blog Cyclelicious

Support international bicycle businesses through microfinance I really really love the idea of Kiva and microfinance and helping people in third world countries. I've been a Kiva lender for over a year and have $250 in loans on the website.

Unfortunately, Kiva's field partners charge incredibly high interest rates to the borrowers that people like you and me are trying to help. The field partner on the loan you highlighted charges an average of 30% interest on the money you give them to lend. While Kiva lists the rate from 'other' lending sources in the area as 120%, is charging someone in a third world country 30% interest on a loan really the best way to help people and to fight poverty?

Since a few months ago I have only re-lent the money I have in Kiva to loans whose field partners charge less interest than the Kiva average (22.91%) and try to support those that charge well below that. Instead of putting more money into Kiva, I have been donating (versus lending) to other organizations that help others in third world countries.

Anyways, I like your article for its focus on bike-centric organizations and I will be making a holiday donation to Bikes Not Bombs (or similar organization) Great idea, promoting environmental transportation and the economies of developing countries (two birds with one stone).