New feature! Automatic repayments

At Kiva, we know that starting and running your business leaves little time for other things. Because your Kiva payments impact your business credit score*, we want to make your life as easy as possible when it comes to making payments on time. That’s why, after hearing feedback from entrepreneurs like you, we’re now offering a new way of making your loan repayments: automatically!
 

What is it?

Sign up once to repay automatically through PayPal based on your repayment schedule and never have to worry about it again. Don’t worry - we’ll still remind you when you have a repayment coming up and when it’s been made. You’ll always be able to view your repayment schedule, and you can edit/pause your automated repayments at any time.

 

Who can sign up?

Once you’ve submitted your loan application, you’ll have the ability to sign up on your dashboard! If you don’t feel ready, no problem. We’ll remind you about this option once you’ve fully funded your loan. As long as you continue to repay your loan on time, you’ll always be eligible to sign up.

 

When should I sign up?

We recommend signing up as soon as you’ve connected your bank account to your PayPal account. Most of our entrepreneurs will set this up once they’ve fully funded. We recommend using your bank account as your preferred payment method - not your credit or debit card - to avoid exorbitant credit card fees.

 

Why should I sign up?

Automatic repayments will save you - and us! - time and effort. Set it up once and never again spend time remembering when you need to make a repayment. This makes both staying in good standing with your lenders and building up your business credit easier. Both of these are very useful if you ever want to raise another loan!
 

How do I signup?

Click here to go to the automatic repayments section of your borrower dashboard. Once on this page, you’ll be able to signup using your PayPal login. See below for our video guide.

 

 


 

FAQs

 

Will I need to make an additional payment if there is one due the day of signing up?

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?

You are able to pause/restart automatic payments at any time from your borrower dashboard. Our team will always be available to help you through this process.

 

At what point will Kiva pull the funds out of my 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?

We will notify you 7 days in advance of the automatic repayment and on the day of repayment.

 

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 auto-repayments and will not charge your backup card. This means you will have to make the missed payment manually.

 

Should I use my credit card as my primary payment method through PayPal?

No, we strongly discourage using a credit card to make your 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 so you don't end up owing interest on a credit card. 

 

Can I still pay ahead of time?

PayPal will only attempt to bill you the amount outstanding on your current repayment due. If you pay manually ahead of time, PayPal will not bill you until there is an amount due per your repayment schedule. Therefore, you can definitely pay ahead of time if you wish without fear of being billed again.

 

Can I change the frequency of my automatic repayments?

At this time, auto-payments can only be made once a month per your repayment schedule. If you’re interested in making payments more often, please let us know here, as we may offer this feature in the future.

 

*This only applies if you signed the contract after 2015-12-15

 


About the author

Claire Marsh

Originally from the Bay Area, Claire graduated Magna Cum Laude from the University of Southern California in 2013, receiving her dual B.A. in Economics and International Relations Global Business, with an emphasis in International Finance. Her focus has been in microfinance and economic development. She is an enthusiast for scalable social and environmental impact and progress based on pragmatic strategy. Prior to joining the Kiva Zip team, Claire ran a startup social enterprise out of the nonprofit Global Brigades, and led the web and business development teams of the online fundraising platform from a mountain town in Nicaragua. An ardent traveler and global explorer, Claire has taken every opportunity to learn from different cultures and expand her perspective. This has led her to living, studying, working and volunteering in a variety of countries from South and Central America, to Asia and Western Africa. When not traveling or working, she can be found reading, running, hiking or playing sports.