Iqra borrowed $1,950 from Kiva of which I lent her $25.
“Iqra is a 23-year-old woman who established a low-cost private school in a marginalized community. The aim of the school is create learning experiences with high standards; it helps the students to get prepared for a better future. At present, she is planning to construct additional classrooms on the vacant space available in the school. However, she needs money for the project and requested a PKR 300,000 loan.” Kiva
What could possibly go wrong?
“Hi there, we’re writing to let you know that your Kiva loan to Iqra, facilitated by Kashf Foundation, has ended in default, for the following reason: this client was unable to pay back the amount they borrowed because of capacity and financial issues of their business. Covid-19 is also one of the reasons why they couldn’t operate their business efficiently.
With Kiva loans it’s common to work to accommodate repayment when loans fall behind schedule, however sometimes, despite efforts to be flexible, loans do end in default. Kiva loans are defaulted at the point in time where it’s deemed that future repayment is unlikely, or when the loan is more than 180 days past due.
To date, $13.47 has been repaid to you, and the remainder of your loan can be considered a loss.
Thank you for your support of this loan, and other borrowers on Kiva.”
An almost 50% write-off but it’s only $12 and Iqra’s got her troubles.