DoesntCompute
October 19th, 2007, 07:02 PM
I have been doing research on microfinance for one of my business classes and wanted to share what I found to the scapers community. Microfinance is the idea of giving small, short term loans to people in poor countries. These loans are then used to start or expand businesses. The growth of these businesses in turn lifts up the entire village. Microfinance has been shown to be an effective tool to reduce poverty worldwide.
In my research, I found an intriguing site called Kiva.org. This site allows users to read about and fund individual businesses. It is a legitimate site and has been featured in the NY Times, Meet the Press, NBC, MSNBC, PBS, and others. 100% of the money you loan goes to the recipient. They have processed over $13 million dollars in loans to over 30 countries and had a 100% repayment rate in their first year (total repayement rate for microfinance loans is 98%). They limit the size of the loan contribution to $25 per business so that everyone can take part in supporting the businesses (over 133,000 contributors).
I wanted to share this idea and this site with the community as a whole because I feel it is a great way to make a difference in the world. If the person defaults on the loan, it is charity. If the loan is repaid, you have made a difference in someone's life at no cost to you. As the lender you you won't make any money. When the loan is repaid, you get your money back.
I have sponsored Nargis Bibi's motorcycle parts business in Pakistan. If any of you decided to participate, please post in this thread what your experiences were.
Some links:
Main site - http://www.kiva.org/app.php
NY Times - http://video.on.nytimes.com/?fr_story=FEEDROOM186917
General press - http://www.kiva.org/about/press/
In my research, I found an intriguing site called Kiva.org. This site allows users to read about and fund individual businesses. It is a legitimate site and has been featured in the NY Times, Meet the Press, NBC, MSNBC, PBS, and others. 100% of the money you loan goes to the recipient. They have processed over $13 million dollars in loans to over 30 countries and had a 100% repayment rate in their first year (total repayement rate for microfinance loans is 98%). They limit the size of the loan contribution to $25 per business so that everyone can take part in supporting the businesses (over 133,000 contributors).
I wanted to share this idea and this site with the community as a whole because I feel it is a great way to make a difference in the world. If the person defaults on the loan, it is charity. If the loan is repaid, you have made a difference in someone's life at no cost to you. As the lender you you won't make any money. When the loan is repaid, you get your money back.
I have sponsored Nargis Bibi's motorcycle parts business in Pakistan. If any of you decided to participate, please post in this thread what your experiences were.
Some links:
Main site - http://www.kiva.org/app.php
NY Times - http://video.on.nytimes.com/?fr_story=FEEDROOM186917
General press - http://www.kiva.org/about/press/