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FYI, kiva is a scam (in as much as the company is incompetent) that primarily props up predatory lenders in other countries
by BrainInAJar 13y ago
FYI, kiva is a scam (in as much as the company is incompetent) that primarily props up predatory lenders in other countries
- colechristensen 13y agoEvidence: Just look at the portfolio yield of many of kiva's lenders. http://en.wikipedia.org/wiki/Kiva_(organization)#Current_interest_rate_statistics http://en.wikipedia.org/wiki/Kiva_(organization)#Current_int... If you're making more than a percent or two interest in what you believe is warm-fuzzy charitable lending, you're simply deluded. Almost all of these enjoy double digit interest rate yields... that's after losses for defaults. Most are around 30% some over 80%. It is very obviously a morally bankrupt practice which has managed to clothe itself as a charity.
- tempestn 13y agoI'm not disagreeing with you, and recall reading elsewhere about Kiva's deceptive practices, but could you back up that claim with some evidence, or at least a more detailed explanation?
- liface 13y agoGreat. Now here's the question. What's better, having loans available at high interest, or having no loans available at all? I'll go with the former.
- BrainInAJar 13y agoIt's not clear that the presence or absence of kiva affects the calculus at all.
- Dewie 13y agoThis is why I've stopped believing in giving to on-the-door charity pleas, or give-some-money-to-X-before-you-check-your-goods-out-at-the-checkout. It seems much better to properly research one or a handful of organizations and give to those, than to give to organizations you have hardly heard of because of the immediate social pressure.
- aestra 13y agoPrevious HN discussion on the matter https://news.ycombinator.com/item?id=7214353 https://news.ycombinator.com/item?id=7214353