Loan $25 to fulfill dreams and build livelihoods through Kiva.org

Recently, I came across Kiva, a non-profit organization, which facilitates connections between borrowers (who are owners of unique small businesses in developing countries) with lenders . Borrowers come from impoverished countries around the world, who are working class entrepreneurs in need of money. Kiva partners with microfinance institutions around the world, which in turn choose these qualified borrowers. You can only lend $25 to a borrower, and they have enforced this limit to curb the huge inflow of lenders that they are currently experiencing. Kiva includes some interesting borrower profiles, excerpts below:

• Cambodia: Mrs. Yab Valin is a widow with 4 children, 2 sons and 2 daughters. She learned to sew clothes from the trainer in the village, and then she started to sew for the villagers, going from one village to another. Her sewing improved every day.

  Then in 1992, she began her business in sewing clothes at home. She has expanded her sewing business by buying more sewing machines and employing the young ladies in her village. Her youngest daughter also sews clothes at home.

  This is Mrs. Yab's first application for a loan from MAXIMA. She requests a loan of $1,000 to buy one more sewing machine for her employee.

• Azerbaijan: Xidirov Rovshan was born in the city of Sumqayit. He is 37 years old and the father of two children. He currently lives with his family in Sumgayit, situated in the eastern part of Azerbaijan. He started his business in 2002 selling perfume and nail varnish. With this business, he earned little money. The money was enough for only some of his family's basic needs. He had difficulty covering his family's other needs including medication, clothes, schooling etc. At this moment, his best clients are young ladies who work at offices. He needs $600 to buy silver goods and merchandise in order to have a bigger inventory and be able to offer clients greater variety and quality. With the income from his business, he will be able to support his children’s studies and help with the family’s expenses. He will repay the loan within 12 months.

Again, remember this is only a loan, and will be repaid back - I have seen repayment terms of 12-14 months. You can loan money through your credit card using Paypal, and can choose to receive periodic updates about the business through Kiva. Once the loan is repaid, you can choose to either take your money out or loan it to a new business. The site currently lists 14 defaulted borrowers vs. 3105 who have paid back in time.

Would you consider this as a good way to give back and encourage true entrepreneurial spirit at the same time? Would you consider this as a good investment in society at the same time helping someone stride towards economic independence?