Adapting Kiva’s Model

While CSR Microloans is using Kiva as a model for its development and operation, Kiva’s existing practices must be modified for a corporate lender. The proposed steps are laid out as follows.

When a corporation agrees to become a part of the CSR Microloans program, it must pledge to uphold certain obligations. First, the corporation must agree to allow inspectors to ensure that its maquiladoras meet a certain standard. Secondly, it must agree that all workers who quit or are severed from that point forward must be offered the opportunity to apply for a microloan, barring certain situations (e.g. if they are fired on account of theft, violent crime, etc.)

Loan applications will be sent to CSR Microloans representatives, who will assess them for legitimacy and risk factor. Assessments will include investigations by on-the-ground field workers, who will meet with/interview potential borrowers. If CSR Microloans determines that the loan request is reasonable and likely to be repaid, it will approve the loan and set forth the terms of repayment.

CSR Microloans will be responsible for monitoring repayment. If the borrower defaults on their loan, CSR Microloans will reimburse half of the corporation’s loss as a form of assurance that the organization will approve loans  only to responsible borrowers.