A while ago, Springwise featured Zopa, an online platform that matches creditworthy borrowers with individuals who'll lend money to them, thereby taking banks and other financial institutions out of the equation.
Make way for a similar initiative that focuses solely on providing (charitable) microloans to entrepreneurs in developing countries – U.S. based Kiva. In their own words: "Kiva provides a new, sponsor a business option for individuals to connect with small enterprises in developing countries through flexible loans." Anyone with internet access and a credit card can now lend money directly to a farmer in Uganda who needs to buy livestock, or a refugee in Gaza hoping to set up a telephone repair shop.
Loans requested by the entrepreneurs average USD 500. The average lender loans between USD 25 and 100, making payment via Paypal, and does not receive interest over the loan. Compared to simply donating money, Kiva's p2p model appears far more sustainable – both for borrowers and lenders. As founder Matthew Flannery explains: "When you loan to someone and get paid back, you get proof that a business has succeeded -- and you are more likely to loan again." Desktop philanthropists can track 'their' entrepreneur's progress via his or her journal, which includes information about the loan amount, how much has been repaid, and of course how the business is evolving thanks to the loan.
Although the microfinance industry has grown 25-30% annually over the last five years, the demand for microcredit services among the world's poorest is still largely unmet. Combined with the news that the number of lenders to Kiva has exceeded the number of people they can find to borrow the cash, this sounds like an excellent growth market. If not for profit, then surely for good karma!
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This is a wonderful idea! Even those (like me) who themselves aren't wealthy can find enough to help someone else who is even less able to help themselves. I believe those who help in turn are helped if only in emotional blessings.
I have always wanted to be able to say, when I leave this world that I left it a little better than when I came into it.
Please add me to your 'lenders' for microloans. I am on a retirement income so I can't lend a big amount right now, but I can loan small loans to needy people.
Thank you,
Ruth M. Williams
aka: Shtara
We are an NGO from Kenya dealing with the Maasai Tribe we want to help them buy cattle after the long drought in Kenya that killed so many cattle, i am so impressed by this i truly have to say that we are honoured to know that Kiva is around
We also run a chariable micro-payments program run project by project and funded from numerous e-commerce providers globally.
Visit http://www.footprints.org.au for more information.
I am interested in your ideas.
I am a business man but a board member of a local association who is working on Children with out supporters. The idea what we are trying to implement is to make them live with working and generating money instead of giving them direct aid/support.
Would you please give me ideas how we could fit in to your program?
Regards / Anteneh Kasssa
I am an LGU worker and is handling microfinance for public market vendors. Would appreciate advices how we can link up with your program. Thank you.
james zamora
Municipality of Makilala
North Cotabato
Philippines
I am a chartered certified Accountant currently working as a Partner in Deno Financial Management & Consulting, a firm registered in Uganda. I would like to concentrate in community work by provinding my expertise in microfinance to help the people of Northern Uganda.
I will be happy to get your response on this idea.
Regards,
Otuko J.B
Are there any ways in ur programme for helping people on higher studies on public health so the benifit of helping their local comunities will b more than the money supply?
شكرا لمساعدتكم الانسانية
GlobeFunder is bringing for profit global funding to MFIs and borrowers later this summer. Our beta website will be replaced by a robust enterprise loan platform. More to follow....
Hi,
I thought you might be interested in how we help people with Kiva loans.
Can business be used for good?
I'd love for you to come and see an entirely new approach to helping people through business. Our blog helps to financially support and fund a small business in a developing country, each and every day. In return for this all we ask is for people, just like you, to donate a business idea that we post. Those business ideas are made available for free on the site to help spark the imagination of budding entrepreneurs. By donating an idea you can help to change a life.
Providing a link and doing a review of the site would be nice but I'd like to invite you to take five minutes out of your busy day and donate a business idea to the site. Your business idea will directly help fund a small business in need at no cost to you.
When your idea is published you'll get a link back to any website you want plus you'll get to see the picture of the exact person you helped through the donation of your business idea. So don't miss seeing that, subscribe to our free RSS feed or daily email while you are on the site.
I'd like to leave you with a big virtual hug as a thank you for your time and hopefully your donation of a business idea.
Steve
Site Link: http://businessideaoftheday.org
http://businessideaoftheday.org
Peer to Peer lending is an innovative way to finance microentrepreneur.
Veecus.com is the first platform that allows social investors to get a financial return on their micro loans.
I think it will help a new class of investors to get in the microfinance field. Will they be attracted by the social aspect or the financial return is another question...
Your objectives are wonderful.
I am a Managing Director of a Newly registered
NGO in Tanzania East Africa, called "MISSION TO AFRICA." We work with desperate Women-widows, orphans, families with HIV/AIDS victims.
I would love to work with you.
Please communicate and let me know how we can get started. You have great ideas on how to reach the poor and the struggling world.
Blessings.
Adeline Mushi | August 1, 2006 7:38 PM