Kiva publicly states, and has for years, the loans are made prior to individual funding via Kiva. While I do believe the majority of users don't know this, I think Kiva does a decent job of disclosing it, saying they are being deceptive, I believe is inaccurate.
It is true the yields are quoted as portfolio yields (average for the lender overall). This seems adequate to me. If the yields are not representative (out of date, etc.) that is bad and Kiva should fix. I didn't notice evidence that this was a widespread problem. Kiva also lumps in all costs to the lender so it isn't like many financial institutions in the USA trying to fake low interest rates with lots of hidden fees etc. (though regulation has made it more difficult for financial institution to make loan rates deceitful - not that they don't try but it is much harder than 15 years ago).
It is peer-to-peer at the essence I think, though it is often not directly that way and I don't think Kiva hides how it works at all. Though I do agree it is easy for someone to not make one or two extra clicks to read a bit about Kiva before making a loan but I think Kiva's balance is fine. Kiva also has a new thing called Kiva Zip that is more "pure" peer-to-peer for people that want that.
I have given to another organization that just made grants (instead of loans) for over 10 years now. Trickleup.org It doesn't have the neat peer-tp-peer psychology going for it. And it is straight charity, not a loan. I have also wished trickleup.org did (or arranged for professors to do) studies on the impact. They have done a bit more in the last few years on the research piece.
I would like more study of Kiva. I want to understand if it is helping and what factors matter. I steer toward lower loan rates but does that really make sense (I figure too high a rate increases risk for the person). I try to lend to purchases of equipment that will increase productivity (though I can't always find those loans) - is that really effective? I also like loans to buy things to rent out devices to increase productivity (some people buy washing machines and lend them out...).
I am very lucky. I like to help give others a chance to gain economic success in the very limited ways I can afford to. I hope Kiva helps, but I do question if it does. And I question if they are focused on growth so much (as most USA based organizations are) that they grow beyond what is helpful. It is possible there is a core that is now say 20% of the Kiva's loans that are hugely beneficial. 50% that are sometimes great, sometimes bad... the value is questionable overall... And say 30% that are likely to just make things worse. But those figures could be anything (from what I know - I don't have any data).
Given what I know I think it is worth lending some money through Kiva. If I were one of those huge foundations giving Kiva millions I would spend at least 20% on research until there was good data on how successful it is and what are the keys for making it work.
It is true the yields are quoted as portfolio yields (average for the lender overall). This seems adequate to me. If the yields are not representative (out of date, etc.) that is bad and Kiva should fix. I didn't notice evidence that this was a widespread problem. Kiva also lumps in all costs to the lender so it isn't like many financial institutions in the USA trying to fake low interest rates with lots of hidden fees etc. (though regulation has made it more difficult for financial institution to make loan rates deceitful - not that they don't try but it is much harder than 15 years ago).
It is peer-to-peer at the essence I think, though it is often not directly that way and I don't think Kiva hides how it works at all. Though I do agree it is easy for someone to not make one or two extra clicks to read a bit about Kiva before making a loan but I think Kiva's balance is fine. Kiva also has a new thing called Kiva Zip that is more "pure" peer-to-peer for people that want that.
I have given to another organization that just made grants (instead of loans) for over 10 years now. Trickleup.org It doesn't have the neat peer-tp-peer psychology going for it. And it is straight charity, not a loan. I have also wished trickleup.org did (or arranged for professors to do) studies on the impact. They have done a bit more in the last few years on the research piece.
I would like more study of Kiva. I want to understand if it is helping and what factors matter. I steer toward lower loan rates but does that really make sense (I figure too high a rate increases risk for the person). I try to lend to purchases of equipment that will increase productivity (though I can't always find those loans) - is that really effective? I also like loans to buy things to rent out devices to increase productivity (some people buy washing machines and lend them out...).
I am very lucky. I like to help give others a chance to gain economic success in the very limited ways I can afford to. I hope Kiva helps, but I do question if it does. And I question if they are focused on growth so much (as most USA based organizations are) that they grow beyond what is helpful. It is possible there is a core that is now say 20% of the Kiva's loans that are hugely beneficial. 50% that are sometimes great, sometimes bad... the value is questionable overall... And say 30% that are likely to just make things worse. But those figures could be anything (from what I know - I don't have any data).
Given what I know I think it is worth lending some money through Kiva. If I were one of those huge foundations giving Kiva millions I would spend at least 20% on research until there was good data on how successful it is and what are the keys for making it work.