Crowdfunding loans help clean energy projects in third world countries

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Nonprofit group Kiva offers a crowdfunding platform of nearly 900,000 individual lenders who have funded more than $415 million in loans to 1 million borrowers in 65 countries, according to the San Francisco-based organization.

Kiva's community of lenders has crowdfunded more than $2.2 million in loans per week and a total of $420 million since the nonprofit was founded in 2005.

Lenders don't earn any interest on their loans, but they can provide a loan for as little as $25 and get the satisfaction of helping spread clean energy around the world. Kiva claims a repayment rate of 98.9 percent, and lenders can Mexico Mobile Number List reissue their money again or withdraw it from the system.

Among other things, Kiva lenders have crowdfunded loans that borrowers use to install solar lighting systems, purchase eco-friendly cookstoves, distribute renewable energy products to isolated regions, and make home improvements to reduce energy costs and consumption.

About 20 percent of the world's population, 1.3 billion people, live in energy poverty, according to Kiva. Many continue to use expensive, inefficient and dangerous energy sources such as charcoal, kerosene and diesel. Despite the health benefits and potential energy and cost savings of renewable energy, most cannot afford the high upfront costs without access to financing.



Kiva works with approximately 150 local partners, including microfinance institutions and other nonprofits, to reach people locally, including some of the most remote places on earth. These partners manage loans, work with borrowers and collect payments. Several Kiva local partners have started their green lending programs using Kiva capital.

Local Kiva partners with green lending programs include: Solar Sister, Uganda, which offers loans to women micro-traders to purchase solar supplies to sell in their communities. One Degree Solar Kenya provides loans to retailers for the purchase and resale of solar devices that can charge phones, flashlights and batteries. EarthSpark International, Haiti, provides loans to retailers for the purchase and resale of both solar products and clean cookstoves to expand last-mile distribution. Credit Mongol, Mongolia, loans for clean energy and energy efficient products in one of the most polluted countries on earth.