However check this link from the world bank : http://psdblog.worldbank.org/psdblog/2006/07/are_mfi_interes.html

Traditionally Microfinance in Asia pac is not termed as a loan with Interest. It is very skillfully designed as an amount of loan which asks for daily repayment of say 1 dollar or 2 dollars.And guess what , until the time the loan is paid – the interest comes to 70%. Isnt this STRANGE.

Regarding kiva – folks like us can only watch how our money is coming back to us. We have no idea whats happening at the backend. Kiva doesnt reply much to our emails – even if they do it , its pretty laconic.

Its very strange that the donations at kiva dont cover India /China /bangladesh – which have one of the highest levels of poverty.

Nevertheless , if the money that goes to Kiva everyday does touch peoples lives in the positive manner – Kudos to Kiva.

However , if they dont – I would say its a brilliant method of earning money without even spending a dime. Think about a 30% interest on a $1 Billion in a years time by the only method of getting rich. Its called Other peoples Money! It can be brilliantly done.

Also, are any microloan ops offering a (low – say 5%) return to the donator? I don’t need the money but it would be a great way to build funds over time for further loans. Either way I plan on putting in more – it’s a great project.
Mike J