In a nutshell, microfinancing or microcredit provides very small loans to those who are living in poverty and would not be seen as ‘bankable’ by traditional financiers. These loans are generally given for these individuals to start up a business venture of their own. To get a better feel about microfinance, read this passage from the book Worldchanging.

Today, I want to introduce you to Kiva, which allows anyone to participate in the Microfinancing by giving microloans to those living in poverty who wish to better their lives through entrepreneurialship.

Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you’ve sponsored. As loans are repaid, you get your loan money back.

Take a moment to learn about Kiva and consider getting involved in Microfinancing – it can and does change lives.