Kiva Loans To Help Worlds Poor: is borrowing the right way?

It seems as if the poor in India have been having a worse time than ever, however according to India West, some want to try and make a better life for themselves but the trouble with this is having the money to do this. However one company is trying to solve this problem and hope that they will be able to help a number of poor Indian people live their dream. The new service that they offer is a Kiva Loan, these loans work in a simple way by using a credit card. Kiva have said that they have borrowed money to over 29,000 new businesses in a total of 39 country, so it is good to offer these loans to the people of India.

However the Indian Government is not convinced by the Kiva’s loans and would like to send someone in to take a closer look at the company. Back in 2005 Kiva tried to apply to the Reserve Bank of India, so that they could become an approved microfinance institution, however the application was rejected.

It seems to me that India’s hard regulatory stance on Riva could be doing more damage to their country by not giving poor people the opportunity to make a better life for themselves and their family. However KIva has said that they will not give up until they can bring Kiv’s service to the people of India

Is this kind of borrowing the right way for the world’s poor?