Micro Loans
Last night I decided to support Nuru Mbaraka's business in Tanzania. She is a small business owner who sells cosmetic supplies at a local store and requested a micro loan to help grow her business. I loaned her $25 and a collection of others pitched in a few hundred dollars.
Microcredit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not able to receive loans from traditional banking institutions. 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. However, over 95% of microloans have been repaid.
A new website, www.kiva.org, has created an extremely simple process enabling users the ability to offer a micro loan to the worlds poor. You can quickly browse through a number of small business requesting loans and learn more about how the money will be used. After a few mouse clicks, a credit card or paypal account enables you to become a business partner with a person in the developing world.
I challenge my blog readers to select a business and loan money through Kiva! As motivation, I will provide a $25 matching loan to the first three loyal blog readers who sponsor a business on Kiva. Here is how it works:
1. Provide a loan through Kiva
2. Leave a comment on this blog that links me to your profile on Kiva
3. I will provide a $25 loan to the same business. If the loan has been fulfilled I will provide the loan to another business.
Ask yourself, can you spare $25 for 6 months? Do you want to help make Bradley part with $75 for the next 6 months?
Microcredit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not able to receive loans from traditional banking institutions. 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. However, over 95% of microloans have been repaid.
A new website, www.kiva.org, has created an extremely simple process enabling users the ability to offer a micro loan to the worlds poor. You can quickly browse through a number of small business requesting loans and learn more about how the money will be used. After a few mouse clicks, a credit card or paypal account enables you to become a business partner with a person in the developing world.
I challenge my blog readers to select a business and loan money through Kiva! As motivation, I will provide a $25 matching loan to the first three loyal blog readers who sponsor a business on Kiva. Here is how it works:
1. Provide a loan through Kiva
2. Leave a comment on this blog that links me to your profile on Kiva
3. I will provide a $25 loan to the same business. If the loan has been fulfilled I will provide the loan to another business.
Ask yourself, can you spare $25 for 6 months? Do you want to help make Bradley part with $75 for the next 6 months?
posted by Bradley Krugh at 7:02 AM
5 Comments:
Brad:
Go sheep breeding!!!
I'm expecting a lamb in the mail any month now.
He better not have 5 legs or I'll be pissed.
JZ
http://www.kiva.org/lender/justin1344
Match the $25 out of the $50 duckets and you too can get a lamb in the mail...
Here you go Brad- your turn to give to my new friend Nancy in Kenya. I guess I now support local farms in other countrys too! Hope you two are enjoying some seriously fun spring skiiing- hope to make it out there myself sometime soon. If you are ever in the mood for some time in the Nation's capitol stop on by. Thanks for telling me about Kiva...great idea
Oh yeah and here is my kiva page:
http://www.kiva.org/lender/greer5820
I love Kiva's idea. If you haven't already, you should read Banker for the Poor, the story of Grameen Bank, the founders of the microcredit revolution.
The one issue that Grameen Bank found to be central to their success (that I worry about with Kiva) were the town support networks that helped the borrowers with their businesses.
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