I believe many at HN must be Kiva users and have lent many loans. I support the cause and good will behind it but there seem to be more here
Today I happened to glance over "Portfolio Yield" of field partners. It's as high as 54% for many.
Even then some of them are reporting negative profitability or maximum as little as 5%.
They are operating in third world countries and making millions from poor borrowers at exorbitant interest rates; even higher than credit cards. How's that possible and is this all operation some scam like aid to African countries?
They aren't charging any interest rates at all, and all interest rates are set by the field programs.
Obviously, in developing countries they are taking on significant risk, so that is passed on to borrowers. If they didn't do this, many would go bankrupt.