Title: Micro-Lending
1Micro-Lending
2What is micro-lending?
- Microcredit is the extension of very small loans
(microloans) to those in poverty designed to spur
entrepreneurship. These individuals lack
collateral, steady employment and a verifiable
credit history and therefore cannot meet even the
most minimal qualifications to gain access to
traditional credit.
3Why microcredit?
- Microcredit emphasizes building capacity of a
micro-entrepreneur, employment generation, trust
building, and help to the micro-entrepreneur on
initiation and during difficult times. - Microcredit is a tool for socioeconomic
development.
4Using the Web to micro-lend
- Multiple Internet-based organizations have
developed platforms that facilitate a modified
form of peer-to-peer lending where a loan is not
made in the form of a single, direct loan, but as
the aggregation of a number of smaller loans.
There are several ways by which the general
public can participate in alleviating poverty
using Web platforms.
5Small Loans. Big Impact.
- Can a 50 loan really make a significant impact
on a persons life? - Absolutely!
- While 50 may seem small, it is important to
remember that the working poor typically live on
less than 2 a day. To them, a 50 loan is
roughly equivalent to an entire months income.
With that extra income, they can buy supplies or
equipment that can help them start new businesses
or earn more income from their existing
businesses.
6Kiva's mission is to connect people, through
lending, for the sake of alleviating poverty.
- Kiva empowers individuals to lend to an
entrepreneur across the globe. By combining
microfinance with the Internet, Kiva is creating
a global community of people connected through
lending. - As of November 2009, Kiva has facilitated over
100 million in loans.
7"Kiva" is a Swahili word which means "unity" or
"agreement". Kiva was co-founded by Matt and
Jessica Flannery, when they were 28 and 27
respectively. PayPal provides Kiva with free
payment processing. Kiva's is the first account
at PayPal with a free payment processing
agreement. Anyone with an email address can
create a Kiva Account. Anyone who can make
payments using a credit card or PayPal account
can be a Kiva Lender.
You can lend as part of any number of teams on
the Kiva website, such as the CSU team or the
Stuff You Should Know Podcast team
8How Kiva Works
9- Kiva was born of the following beliefs
- People are by nature generous, and will help
others if given the opportunity to do so in a
transparent, accountable way. - The poor are highly motivated and can be very
successful when given an opportunity. - By connecting people Kiva hopes to create
relationships beyond financial transactions, and
build a global community expressing support and
encouragement of one another.
10How Works
- It all starts with our Field Partners, which are
microfinance institutions operating around the
world. - 2) The Field Partner uploads the entrepreneurs
profile to Kivas website. - 3) Lenders like you browse the entrepreneurs
profiles and choose someone to lend to, using
PayPal or their credit cards (as little as 25!). - 4) Kiva provides the funds to our Field Partners.
- 5) Over time, the entrepreneur repays her loan.
- 6) When lenders get their money back, they can
re-lend to another entrepreneur, donate their
funds to Kiva (to cover operational expenses), or
withdraw their funds to their PayPal accounts.
11Microloan is committed to helping the poorest of
the poor to help themselves in order to change
their lives for the better.
- Microloans key objectives are the relief of
poverty, the advancement of education and the
relief of sickness in the developing world
through the provision of microloans and grants.
The services are charitable and not-for-profit. - Microloan provides small loans to groups of women
across sub-Saharan Africa.
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13Our mission is to use micro-lending to promote
economic opportunity and political stability in
the Middle East.
- LendforPeace.org is a not-for-profit Internet
platform that allows individuals like you to make
small loans to specific micro-entrepreneurs in
the Palestinian Territories. - Using the site, you can make a loan directly to a
vetted micro-entrepreneur in the West Bank.
LendforPeace work with US government-approved
microfinance institutions on the ground to
deliver your capital along with training and
guidance to low-income individuals who are
interested in starting or expanding their own
small businesses. - Founded by two Jews and two Palestinians,
LendforPeace.org was created to enable people of
all faiths and backgrounds to make a tangible
difference in the Israeli-Palestinian conflict.
14Pro Mujer provides poor women in Latin America
with the means to build livelihoods for
themselves and futures for their families through
microfinance, business training, and healthcare
support.
- Pro Mujer fights poverty by establishing
sustainable microfinance organizations that
provide an integrated package of financial and
human development services that women require to
build and improve their small businesses. - With a steady income, good health, and improved
self-esteem, women are empowered to become agents
of change and lift themselves and their families
out of poverty. - Pro Mujer currently operates in Argentina,
Bolivia, Mexico, Nicaragua and Peru, and has
plans to expand into other countries in Latin
America. - US159 million in loans were disbursed in 2009.
- Currently serves 202,000 clients and
approximately one million children and extended
family members.
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16MicroPlaces mission is to help alleviate global
poverty by enabling everyday people to make
investments in the worlds working poor.
- MicroPlace is a social business owned by eBay.
MicroPlace wants to alleviate global poverty by
offering investments that enable loans to
hardworking poor people. - What's a social business? It's a financially
sustainable company that has a social mission. - A loan of a 20 can allow a poor woman to start a
business and work her way out of poverty. In many
countries, organizations that function like banks
make loans to the poor. These organizations need
funds to lend to the poor. Your investment helps
fund these organizations. You are paid a return
for the funds you invest. You can fight poverty
and get your money back with interest!
This website gives you back your money back with
interest, unlike the other sites which are
interest-free, which do you think is more helpful
to those in need?
17Created by Bonnie Sizer bonnie.sizer_at_gmail.com Res
ident Assistant Colorado State University
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