A Kiva Video
Over five years ago I was in Ayutthaya, Thailand, with my friend. For the interest of his marriage I’ll call him Montreal. Montreal spent a lot of time with a Thai girl who spoke English quite well, and who lent money to small time merchants. Montreal took me to visit her. She was cool, fun, and intelligent. And she was very good at business. What she did was give daily or weekly loans at extremely high interest. For a daily loan she would give 200 Baht, ask for 20% the next day, return to collect 240 Baht, and reloan the person the 200 Baht.
She was the only option for these street merchants in the struggle to live. She would loan when no banks would. I’m not sure what mob or muscle she had behind her to enforce the loans. To stop people like her is why microloans are important. Organizations like Kiva make a difference.
This video explains how Kiva functions. If you are interested in helping people in developing countries, please watch: Kiva Video.