Frequently Asked Questions
Applying
How long does the application process take?
Filling out the application usually takes between 30 minutes to an hour. We encourage you to take your time completing the application, ensuring it tells your personal as well as business story in a compelling way.
What makes a strong application?
A strong application is one that has a well thought out Personal Story, Business Description and Loan Purpose, together with a quality Profile Photo that highlights the borrower and their business and an accepted Business Proof.
Click on each link to learn more about what Kiva is looking for in a good application.
I see there is a checkbox asking if I have my business and personal finances separate – is this a requirement?
Separate business and personal finances is not a requirement. However, if you do select that they are separate, please ensure you submit a recent statement from your business bank account to verify this.
How long does it take for Kiva to review an application?
The average time for an application to undergo review is 5-7 business days. However, for well-thought-out applications, the review process is much quicker. This is why we urge applicants to take their time on their application, ensuring it is detailed and clear and includes the requested information and documents.
Click here to find out which stage of the review process your application currently is in.
I have submitted my application, now what?
Once you have submitted an application, start thinking about people in your network that you can reach out to during your Private Lending campaign (a.k.a. the Private Fundraising Period). Make a list of potential lenders and start laying the groundwork for your lending campaign.
Private Fundraising
What is Private Fundraising?
Private Fundraising is part of Kiva’s underwriting process. During the Private Fundraising period borrowers are asked to get a certain number of people in their network to contribute to their campaign. This process is similar to crowdfunding, but the biggest difference between typical crowdfunding and Private Fundraising with Kiva is that you are crowdfunding loans, not donations.
Why do we have the Private Fundraising Period?
At Kiva we believe that if your network supports you and your business, then we should, too. That is why we do not rely on traditional forms of underwriting to qualify borrowers for loans. Instead, the Private Fundraising Period allows us to vet our borrowers and gives them a chance to prove their creditworthiness and show us whether or not their community trusts them.
Learn more about Private Fundraising through Kiva here.
What’s the benefit of crowdfunding?
People want to help, and at Kiva, anyone can contribute $25 to support your 0% interest loan. The more people who contribute, the easier it is to fund your the loan, and the more people who see and start talking about your business. And who knows? Maybe they’ll provide input, comments, and ideas to help your business.
How long does Private Fundraising take?
Private Fundraising can take anywhere between 1-15 days. After 15 days, if you have not reached your required number of Private Lenders, then your loan will unfortunately expire.
That’s why we say it’s never too early to start thinking about potential lenders – people whom you know and who trust you and whom you will ask for their support during your Private Fundraising campaign.
What do I have to do during the Private Fundraising phase?
During Private Fundraising, borrowers are asked to get a certain number of lenders to contribute to their campaign. This is Kiva’s way of underwriting a loan – we call it “social underwriting”. Check out our Private Fundraising to learn more.
If I reach the required number of lenders in less than 15 days in the Private Fundraising Period (PFP), will I have to wait?
No! Once you reach the target number of lenders in PFP, your profile will move automatically to Public Fundraising. Similarly, if you fully fund your loan prior to the end of your Public Fundraising period (i.e., before the 30 days of Public Fundraising are up), you will have successfully completed your campaign, and 5-7 business days later, you can expect to receive the funds directly to the PayPal account which you provided in your application.
What key points should I emphasize when reaching out to potential lenders?
1. You’re not asking for donations—you will be paying them back! Your lenders’ contributions during Private Fundraising help vouch for your character as well as build momentum to reach Public Fundraising.
2. This is a great opportunity to engage your base that likely wants to support you. Beyond close friends and immediate family, consider reaching out to your broader network of customers, vendors, and business partners. Remember: word of mouth is powerful. Ask those who back you to spread the word about your campaign!
3. As soon as you reach your private lender goal (the number of lenders who make a loan to you during PFP), your loan will be visible to hundreds of thousands of Kiva lenders nationally (and globally) who are eager to support US small business owners during these difficult times.
4. Kiva is legitimate. We have been doing impact-lending for 15+ years and we’ve recently launched a COVID-19 response fund aiming to raise $50M in partnership with corporations and celebrities like Sofia Vergara (a.k.a. Gloria on Modern Family!)
Once I reach my lender goal for the Private Fundraising Period, should I stop fundraising?
No! The more lenders that support your campaign, the faster you’ll get your loan. If there are more potential backers within your network than your assigned goal, we encourage you to reach out to them even after you’ve reached your private-round goal; these individuals can continue supporting you during Public Fundraising.
Will my private lenders be repaid?
Yes – your private and public lenders alike will get repaid. Your lenders get a repayment each time you make a payment on your loan.
For example, say your repayment term is 24 months.
That means each repayment you make is worth 1/24th of your total loan. Each month, your lenders will receive 1/24th of their initial contributions (e.g., if a lender contributed $25 to your campaign, they will receive $1.04 each time you make a monthly repayment during this 24-month-repayment period).
Are there any fees or interest I – or my lenders – should know about?
There are no fees, neither for lenders nor for borrowers.
Kiva will ask your lenders for an optional donation (to help compensate the cost of administering your loan) upon checkout, which we call a 'tip'. This can be edited down to $0. There is 0% interest on your loan.
How can people make loans?
Each of your private lenders will have to follow your personal link to your loan page, create a Kiva account, and use a credit card, debit card, or PayPal account to lend to your campaign. They cannot send you money outside of Kiva, and they cannot give you cash.
If your lenders are having trouble making a loan, encourage them to reach out to our support team at contactus@kiva.org or check out our step-by-step guide on How to make a loan on Kiva!
If I can't reach the required number of people during Private Fundraising, what happens?
Your loan will expire and any contributions that had been made to your campaign will be sent back to the lenders.
Can I reapply for another loan if my loan expires?
Yes, if your loan expired in either Private or Public Fundraising*, you will be able to re-apply for another Kiva loan after 3 months.
If your loan expired in Public Fundraising but you raised at least 50% of your total loan, you may be eligible to reapply immediately.
Public Fundraising
What is Public Fundraising?
Kiva’s Public Fundraising period is the final stage of your crowd-lending campaign. During the Public Fundraising period, your campaign is public on Kiva’s platform. This means that anyone of Kiva’s 1.9 million global lenders can see and lend to your campaign!
How long does Public Fundraising take?
Public Fundraising can take between 1-35 days. We have seen that, the more time and effort a borrower puts into their application and loan campaign, the faster they get funded on our Kiva platform. This is why we encourage borrowers to ensure their application is thorough. Click here for more information on the application process and for tips on how to make your loan profile shine!
What happens if I do not get fully funded on Kiva in 50 (Private 15 days + Public 35 days periods) days?
Fully funded refers to getting enough contributions necessary to meet your goal, the loan amount you had originally qualified for.
If your campaign does not get fully funded within 45 days of being put on our website, then your loan campaign will expire and all your lenders will receive full refunds.
And if I do not get fully funded on Kiva in 50 (Private 15 days + Public 35 days periods) days, when will my lenders who contributed to my loan so far get refunded?
The money lent by lenders will be refunded also instantaneously (or in one business day) once a Kiva loan campaign expires.
*Please note that the funds will be available in lenders’ Kiva accounts and not their bank account.
Disbursements
How long does it take for my loan to get disbursed after being fully funded?
You can expect your loan to be disbursed to you 5-7 business days after it has been fully funded. Please wait 5-7 business days before reaching out to Kiva. We do our best to process and disburse all loans within this timeframe.
The money from my loan was sent to me over PayPal, but it’s not showing up in my Bank Account?
When you are paid money on PayPal, the money will NOT appear immediately in your bank account. The money goes into your PayPal account, and you have to go into your PayPal account to claim the money and transfer it into your bank account.
Until you do so, the money will stay safely in your PayPal account.
Repayments
How do I repay my Kiva loan?
Loan repayments begin 1-6 months after you receive the funds. (Your qualification email will tell you when your first repayment will be due.)
All payments are made through PayPal. A few days before each of your payments is due, you’ll receive an invoice from Kiva with a link to make the payment. You can always make a payment early, or pay off a lump sum by logging directly into PayPal and sending the funds to Kiva.
In order to make your monthly payment:
Log into your Kiva Account
Click on “Make repayment” or “Pay now”
Make sure to log into your PayPal account (do not checkout as a guest)
Choose your payment method and then click “Send payment now”
In order to enter a custom amount or make a lump sum payment:
Visit www.paypal.me/kivaus
Enter the desired payment amount
Make sure you are logged into your PayPal account when sending any payment to Kiva
To avoid having to do these steps every month, we encourage you to set up automatic repayments!
What should I do if one of my payments is going to be late?
If for any reason your payment is going to be made late, it’s most important that you notify both your lenders and the Kiva team.
As your lenders contributed to your loan financially and believed in your business, it’s important that you keep them updated on the highs and lows of running your business through the Conversations tab in your borrower portal.
Maintaining contact with the Kiva team about late repayments helps you maintain good standing with Kiva and your lenders, and good standing means the ability to access larger forms of capital for your business in the future!
Can I use a payment method other than PayPal?
No. Kiva exclusively uses PayPal for all monetary transactions.
Payment methods we will NOT accept include, but are not limited to:
Dollar bills or coins
Checks
Wire transfers
Money orders
Or any other money transferring system, such as Venmo, Google Wallet, Apple Pay, Skrill, Intuit, or Facebook Message payments
Can someone make a payment ON MY BEHALF?
Yes! Have a trusted friend / family member who could make a PayPal payment on your behalf?
Share that individual’s name + PayPal email address with our team at borrowers@kiva.org
What does it mean if my Kiva loan goes into default?
It means a payment has not been received in over 6 months, or that a bankruptcy notice has been received for you. Once your loan is defaulted:
you and your Kiva lender community will receive email notification of the defaulted loan,
Kiva and your lenders will assume the remaining balance of your loan as a loss as soon as the loan defaults,
you will no longer be able to communicate with your lenders, and
you will no longer be eligible for lender-backed 0%-interest capital.
PayPal
How do I create a PayPal Account?
To set up a PayPal account, go here and click the “Sign up” button. The site will walk you through the process, but if you have other questions or would like to learn more, click here.
You will need to link your PayPal account to either a credit card, debit card, or bank account.
We highly suggest that you do not link your PayPal to a credit or debit card. Though PayPal is generally free, the site will charge you for every transaction through a card.
Instead, go with the simple and free option: link your PayPal account to your bank account.
Remember that you need to confirm your email and your bank account to make sure they are connected correctly and that PayPal will work. Until this is done, the funds will not transfer from your PayPal —> your bank account.
Why does Kiva use PayPal for all transactions?
PayPal helps Kiva stay true to its mission of financial inclusion and transparency. From its very first loans in 2005, Kiva has used PayPal as its exclusive online payments processor – helping to unlock funding for entrepreneurs who wouldn’t otherwise have access to affordable capital.
Kiva’s relationship with PayPal started even before the nonprofit’s launch. Premal Shah, Kiva’s cofounder and president, was a product manager at PayPal when the concept for Kiva began percolating. Working with Kiva’s other cofounders, Shah helped foster PayPal’s commitment to the fledgling organization: to process every loan made through Kiva without charging any transaction fees.
Read more about Kiva’s partnership with PayPal here.
The money from my loan was sent to me over PayPal, but it’s not showing up in my bank account?
When you are paid money on PayPal, the money will NOT appear immediately in your bank account. The money goes into your PayPal account, and you have to go into your PayPal account to claim the money and transfer it into your bank account.
Until you do so, the money will stay safely in your PayPal account.
How do I send payments to Kiva on PayPal?
Navigate to your account's transfer page here and send the repayment amount to “PayPalzip@Kiva.org”. It’s as easy as that! (Link: paypal.me/kivaus)
We’ve put together detailed step-by-step explanation of the repayment process here.
Can someone send a payment ON MY BEHALF?
Yes! We understand that you may be experiencing difficulties with your PayPal – should you want a friend / family member to make a payment on your behalf, please send to borrowers@kiva.org the name of that individual + their PayPal email.
What are Automatic Repayments?
Signing up for Automatic Repayments is a great way to always stay on top of your repayments, and we highly recommend it! Anyone is eligible to sign up – you just need to have money available in your PayPal account. Learn more about Automatic Repayments here.
If you do sign up for Automatic Repayments, remember to check in periodically to make sure you have enough money in your PayPal account for upcoming repayments.
If there is not enough money in your account for a monthly payment, Automatic Repayments will freeze and you’ll miss a monthly payment.
Automatic Repayments
What are Automatic Repayments?
Signing up for Automatic Repayments is a great way to always stay on top of your repayments, and we highly recommend it! You can pause or cancel your repayments at any time — learn more here.
If you do sign up for Automatic Repayments, remember to check in periodically to make sure you have enough money in your bank account for upcoming repayments.
If there is not enough money in your account for a monthly payment, Kiva will not pull the funds, causing you to miss a monthly payment.
More questions or issues with PayPal?
Email us at borrowers@kiva.org for support.
How do I sign up for Automatic Repayments?
Watch this brief Step-by-Step video to getting set up with Automatic Repayments.
Will I need to make an additional payment if there’s one due the day I sign up for Automatic Repayments?
Nope! Sign up, and we’ll do the rest for you. There will be no need for you to manually make a repayment.
Can I stop my Automatic Repayments once signed up?
Yes. Via your borrower dashboard, you are able to pause/restart Automatic Repayments at any time. Our team will always be available to help you through this process – contact us at borrowers@kiva.org.
At what point will Kiva pull the funds out of my PayPal account?
Once Automatic Repayments are enabled, Kiva will attempt to withdraw the funds from your account the day your payment is due. If successful, the repayment will then be processed and reflected on your repayment schedule to lenders within 1 business day.
Will I be notified before funds are pulled from my account?
Yes. We will notify you via email in advance of the Automatic Repayment as well as on the day the repayment is due.
Do I need a credit card to sign up for Automatic Repayments?
We are able to offer automatic repayments through PayPal. PayPal requires that you have a credit/debit card or ACH to enable automatic repayments as a backup in case there aren’t funds in your bank account or PayPal account.
Will I be charged if I don’t have money in my account?
If we are unable to process your payment on the first attempt, we will pause Automatic Repayments and will not charge your backup card. You’ll need to manually make the missed repayment to catch up.
Any possible incurred fees are at the discretion of your bank.
Should I use my credit card as my primary payment method through PayPal?
No, we strongly discourage using a credit card as your primary payment method for Automatic Repayments through PayPal.
Your Kiva loan has 0% interest, but credit cards have high-interest rates. Additionally, PayPal will charge you a fee for using your credit card. Instead, you should use your bank account to make payments (that way, you’ll avoid paying interest on a credit card).
Can I still pay ahead of time if I’m signed up for Automatic Repayments?
Yes. PayPal will only attempt to bill you the amount outstanding according to your repayment schedule. If you pay manually ahead of time, PayPal will not bill you until there is an amount due on an expected due date. You can definitely pay ahead of time without fear of being billed again.
Can I change the frequency of my Automatic Repayments?
At this time, Automatic Repayments can only be made once a month per your repayment schedule. If you’re interested in making payments more frequently than once a month, please let us know at borrowers@kiva.org, as we’re considering offering his feature in the future.
After Kiva
What happens when I finish repaying my Kiva loan?
Now that you've received and repaid a Kiva U.S. loan, it's easy to apply for another, larger loan. If you’ve successfully paid off your 1st loan according to your repayment schedule, we want to offer you the opportunity to apply for a loan 2x the size of your 1st loan, up to $15,000!
If there is a Kiva Hub in your area, please reach out to them to learn about any financing institutions that work with Kiva borrowers for larger loans. Check out our Borrower Resources for other Technical Assistance providers and sources of funding!