The Greening of Microfinance

April 22, 2011

The micro-lending Web site Kiva has announced a new loan category, Kiva Green Loans.

The announcement, issued to coincide with Earth Day, means Kiva lenders can now support personal and business loan requests that address energy poverty and environmental action initiatives

Accessible via the Kiva Web site, these can include loans for alternative energy projects, minimizing waste and pollution, as well as for recycling and repurposing waste.

For example, one featured loan - a request for $500 from a woman in Bolivia - is  for converting oil-guzzling taxi cabs into vehicles running on natural gas. The loan monies are earmarked for tools and supplies as demand rises for more affordable fueling alternatives.

"Much of the developing world spends hours a day gathering wood and other materials for fuel, losing countless hours and often inadvertently damaging the environment," said Premal Shah, Kiva's President. "Microfinance can help provide solutions for energy poverty problems like these by, for example, funding the purchase of high-efficiency cookers and low-propane gas stoves. Green loans can not only save the borrowers money, but also help reduce our collective impact on the environment."

There are 78 ATMs for every 100,000 adults in the developed world; in developing countries just 23 ATMs are deployed per 100,000 adults 

_{-Financial Access database}