These folks are in the business of setting up micro-financing to help folks all over the world who want to improve they lives by starting, expanding or improving a business, getting an education, improving their homes, etc. A very small added fee ($3.25) for a $25.00 loan is all the "Administration fee that doesn't go to the borrower. AS the borrower pays back the money you can re-lend it to another borrower, donate it to KIVA operations or have it refunded to you. Since there are many lenders whose money is pooled for the loan there risk is small. I have made over 125 loans over the past several years and only had a couple of defaults. This is a great way to help other help themselves--not a hand out by a helping hand that preserves the dignity of the folks receiving the help.