Kiva volunteer looking for a place to stay

Submitted by jschugel on Thu, 2007/12/06 - 14:56.

I'll be volunteering with CEPRODEL (microfinance institution) in Managua (on behalf of Kiva) for 2-1/2 months starting the beginning of February. I'm looking for either a long-term hostel, a furnished apartment for rent, or a home stay with an accommodating family, in either Barrio Martha Quezada, Bolonia, or the Los Robles area. Please let me know if anyone has any helpful info.

Thank you! Jessica

‹ Apartment in Managua? Hotel w/Internet in Heredia or Alajuela? ›

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Any relation to Prisma Microfinance?

Submitted by nicalink on Fri, 2007/12/07 - 02:51.

As a Nicaraguan born US Resident, I looked to Kiva in order to attempt to provide some help to Nicaraguan entrepreneurs through micro financing. Not too many Nica entrepreneurs are participating / borrowing. I find myself lending to other Latino Americanos due to this.

It seems to be going well though. The loans are being repaid, and the $ is being re-lent by me through Kiva.

However, I've had 2 loans refunded by Kiva for loans which were made to Nicas through Kiva's partnership with Prisma Microfinance. Prisma posted monthly payments, but apparently the $ never made it to the actual borrowers.

I hope your organization CEPRODEL does a better job to ensure the $ gets to the actual borrower.

You can see my profile at http://www.kiva.org/lender/tulio

There you will see the 2 refunded loans.

P.S. I went into this with the expectations that I may never see the $ again. I just wanted to help small Nica Businesses.

Once I saw some loans being repaid, I continued to re-lend the $ and lend more. Who knows, maybe I can buy myself something nice when all the $ is re-paid. I'll still keep lending through Kiva as long as loans keep getting paid back.

Think of this as stuffing $ into a mattress. No interest is earned, the currency may depreciate, and the rats may just eat your bills. Regardless, it's still a way to help others. When you donate to charity, all you get back is satisfaction and a potential tax break. In this case, you actually may get some cash back.

Tulio Solorzano

Directory of Nicaraguan owned Businesses in the US www.nicalink.com - post your business here.

Web Design and Development www.tulio.us

Hola Tulio, Thank you for

Submitted by jschugel on Fri, 2007/12/07 - 17:33.

Hola Tulio, Thank you for the great info. I think Kiva does a good job of due diligence when they seek to partner with microfinance institutions around the world considering the great effort that goes into fostering the relationship. Ultimately it is the bank that is responsible for their clients and their loans. For whatever reasons Prisma did not work out, but I'm sure there are many people who learned something along the way and will want to do better in the future. CEPRODEL is new to Kiva. I'm hoping for success and looking forward to meeting Nicaragua's entrepreneurs.

I don't understand

Submitted by fyl on Fri, 2007/12/07 - 18:28.

You say "Ultimately it is the bank that is responsible for their clients and their loans." Where does a bank come in? As I understand it, CEPRODEL will be the new NGO that talks to Nicaraguan businesses and Kiva comes up with the money.

Kiva is a portal for

Submitted by jschugel on Fri, 2007/12/14 - 17:07.

Kiva is a portal for lending. The money simply passes through their website into the hands of the individual microfinance institutions working all over the world. It's these banks that approve and distribute loans, and manage repayment. The Kiva website spells it all out. It's a brilliant concept.

Still Confused

Submitted by fyl on Fri, 2007/12/14 - 18:12.

But about a different part. You said you are a Kiva volunteer but you then said "I'm hoping for success and looking forward to meeting Nicaragua's entrepreneurs."

I know how Kiva works. The web site says that the lenders work with the businesses. The Kiva website serves as a way to make connections and sends funds to the lenders who manage the loans. ...

It doesn't sound like Kiva deals directly with the entrepreneurs so I don't understand where you fit in. I'm not trying to "cause trouble" here. I am glad Kiva is doing what it is doing but I am just trying to see how all the pieces fit together.

clarification - Kiva entrepreneurs

Submitted by whitneytravel on Sat, 2008/10/04 - 12:21.

Hi fyl,

I'm Whitney - I will be volunteering with CEPRODEL starting next week on behalf of Kiva. You posted a while ago - perhaps your questions were answered - but I'd be happy to clarify what seems to be your question.

Part of the responsibilities of Kiva Fellows, like Jessica and myself, is to accompany the loan officers into the field to meet the individual entrepreneurs who have received loans funded by Kiva lenders. We do indeed work most closely with the local microfinance institution, in this case being CEPRODEL, but fundamental to our fellowship experience is speaking to the entrepreneurs and relaying their stories to Kiva lenders.

Thank you for your support of Kiva, and org I think is awesome and effective - I look forward to having a more personal experience with Kiva in Nicaragua!

Whitney

I also support Kiva loans

Submitted by arlington on Sun, 2008/10/05 - 21:40.

I also support Kiva, (http://www.kiva.org/lender/robert5410) because something is better than nothing I suppose but, I really think in developing countries those most in need of micro loans ought to be a able to do better than 30% interest. It really is scandalous, especially considering most loans are repaid 100% with an extremely low default rate. Outside of credit cards, I've never paid more than 7% in the last decade. There's something wrong with this in my opinion. I think a government backed credit union or something like it is in order for all developing countries and something with which the the FSLN should become involved. It's not Kiva's business, I understand but, the microfinanciers that set their own rates.

http://www.prismamicrofinance.com/Downloads/big_money_in_small_loans.htm...

(quote from this website) Interest rates on microcredit loans can work out as high as 20 percent to 60 percent on an annual basis, he said. That may sound high, but the only alternative for these borrowers is money lenders who charge anywhere from 300 percent to 3,000 percent interest.

(extract from Grameen Bank page)

I’ve heard that MFIs charge a high rate of interest for the loans. Is that so? Like other financial institutions, microfinance institutions (MFIs) charge interest for the loans they make to their clients. The interest covers the high cost of making very small loans and personally servicing each client every week. It also covers the cost of managing the “center meetings”; the peer support group process; and providing information on social services, personal development, health and other critical information that helps clients improve their lives and the future of their families. Their rates are also largely influenced by the rates MFIs themselves pay for borrowing the funds that they in turn lend to their clients. MFI interest rates can range from 18 to 60 percent, depending on the conditions in each MFI’s service area. Without microfinance programs, the most common alternative for very poor people is the local “money lenders,” who regularly charge between 120 and 300 percent.

For a Nicaraguan perspective on MFI see http://www.envio.org.ni/articulo/3856

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