Become a multinational financier...

Discussion in 'Off-Topic Chat' started by bigmamabadger, Apr 12, 2007.

  1. bigmamabadger

    bigmamabadger Active Member

    Anyone come across Micro-Loans ? Lending small amounts of money to people in poorer countries, to enable them to start or develop small businesses.

    I've been looking at the Kiva website. Kiva a micro loans enabling organisation that will pass loans as small as $25 (about £12.64) to the business specified by the lender.

    The lender pays via Paypal, who have agreed waive all charges for this service, to a holding organisation in the borrowers local area/country, typically a Credit Union or similar. They pass the money to the borrower who in turn over a fixed period pays the loan back at small interest which cover the local costs, to Paypal who credit the original lenders account. The lender receives no interest. The repayment rate at present is 100%.
    Try it and get a warm fuzzy feeling...
  2. TheMusicMan

    TheMusicMan tMP Founder Staff Member

    Nice idea this...
  3. bigmamabadger

    bigmamabadger Active Member

    I've just done it myself. $50 to a widow with 4 children in Kenya.
    It really is nice to think of my money going to a specific person.
    I've checked out a few blogs on this subject and it does seem fairly rock-solid.
    The Kiva website does state that as with any investment, it carries the risk of not getting your money back, but that the repayment rate for Kiva itself is 100% and microloans worldwide are 97% repayed.
    Payment is via PayPal which does not charge anything for this service. There's an optional service charge of $5 to Kiva to help cover operating costs.
    It's not tax-deductible since it's a loan, not a donation, but you can keep paying the same $50 over and over again once you get it back.