Kiva Microfinance and the Future China Essay Example | Topics and Well Written Essays - 500 words

Kiva Microfinance and the Future China - Essay Example The major challenge faced by Kiva microfinance is the emergence of other organizations that deal in similar same services it offers. Government policies had been established to permit loan granting organization leading to business competition. This calls for vigilance on how Kiva invests their money or grant loans. The sole reason for the establishment of many loans granting corporations is to help the country grow economically (Sinclair, 36). These have allowed lender borrow a large amount of money as compared to other days. This is because the law charges the same interests between 3,000 and 10,000 thus lenders give out large loans so as to get high interest in return. The setback has resulted in irresponsible money lending with Kiva since it is not logical for a poor person to borrow one million to start a business because there is no guarantee that the money will be refunded. It is noted that 20% and below of the money given out as loans serve the rural population whereby it is t he farmers and small scale business people who benefit a lot from this micro-finance organization. In conclusion, a lot of development is expected in Kiva microfinance to help the eradication of poverty globally. Kiva micro-finance is working with various nations to ensure that people are encouraged and taught some of the basic enterprenual concepts. Due to the population increment, Kiva aims at providing loans to the jobless to help avoid an increase in criminal cases. Loans help those with enterprenual skills meet some of the long-term goals.