Engaged Beyond Business

Microfinancing

with Kiva

Microloans for change

More than a billion people around the world live without access to basic financial services, limiting their ability to grow, invest, or recover from setbacks. Kiva is a nonprofit that addresses this gap by enabling individuals to lend out microloans. Unlike donations, these loans are repaid, so the same contribution can fuel lasting, repeatable impact.

The project

With Kiva, we use crowdfunded loans to unlock access, giving individuals and communities the capital they need to build better futures. Lenders are free to choose the amount they want to invest (minimum USD 25). Lenders can fund what matters to them - whether that’s a new fishing net or community solar power. Every loan helps someone take control of their future.

Since 2005, the Kiva community has supported more than 5 million people worldwide with over $2 billion. With Kiva, you see exactly where your money goes, knowing you’re creating real, measurable change in the world.

The philosophy of micro-financing

Why loans? Because access to traditional finance remains out of reach for many, especially those without formal credit histories or steady employment. Microfinance creates a path forward. Through crowdfunded loans, individuals gain the means to invest in education, grow small businesses, or build climate resilience. Because these loans are repaid, the same capital can be reinvested again and again—extending opportunity across families, communities, and borders. This initiative gives Hilti team members a chance to take part in that cycle, supporting not just a loan, but creating a long-term ripple effect that can impact the future of an entire community.

Origins and achievements

The Kiva-platform was founded in 2005 by Matt Flannery and Jessica Jackley in San Francisco. A lecture by Muhammad Yunus, the father of micro-finance, sparked their interest in this form of lending at the time. Soon after, the duo began to become more involved in social causes and discovered that access to start-up capital was still an insurmountable hurdle for many people. Hence, the two began working on Kiva, which means «unity» in Swahili. In March 2005, the first loan was granted to a woman in Uganda named Elizabeth, who used it to expand her fish mongering business off the coast of Lake Victoria. By November 2006, over 1,000 people had applied for Kiva loans. By the end of that first year, Kiva had lent $1 million USD. Nineteen years later, 5 million people have used Kiva loans to change their lives, and the platform continues to evolve to meet the diverse credit needs of different individuals.

How can you get started?

  1. Go to this link to get started.

  2. Enter your Hilti email to receive your voucher code. Don’t close the browser.

  3. Paste the code from your mail to the browser. After providing your name to complete the registration process, your $25 credit will be ready to be redeemed and you will be brought to the “Explore Loans” page.

  4. Select the beneficiary you wish to support, click “Lend” and “Checkout now” to fund the loan.

  5. Thank you for participating! You will receive a confirmation email from Kiva.

The recipe for success

Kiva serves borrowers in nearly 80 countries on all five continents. Without an extensive network of partners, the non-profit organization would not be able to achieve such an impact. That’s why the platform relies on so-called field partners. These partners screen borrowers, submit applications, disburse loans, and collect repayments. Most of the field partners are micro-finance institutions, but there are also many schools, NGOs or other social enterprises among them. What they all have in common, however, is a desire to improve people’s lives through safe and fair access to credit.

Procedure and measures

Applications for loans go through several phases: First, a loan seeker submits an application, which is then reviewed by Kiva or one of its field partners. Once approved, the project is visible to platform users as potential lenders. There are two funding models: fixed requests must be fully raised in order for the funds to be passed on to the field partner. If the amount is not fully funded within the specified period, the loan is forfeited and the collected funds are transferred back to the lenders’ accounts. In the case of flexible requests all collected funds are forwarded to the local partner. The latter then finds other sources of funding to cover the balance. The funds collected on Kiva are then transferred to the field partner and used to cover the loan. As a rule, a fundraising campaign lasts around 30 days.

Once the loan is granted, local partners gradually collect the reimbursements. The amount is based on individual plans agreed with the borrowers. The field partners then pay the funds to Kiva, which in turn transfers the reimbursements to each (micro) lender’s account. They then decide whether to reinvest, donate or withdraw the money.

Do you have any questions? You can reach us by e-mail: foundation-ebb.hiltiteam@hilti.com