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Microfinance: A social network to provide small loans to poor people for their business dreams
Microfinance is a socially conscious form of lending in which investors loans funds typically via an intermediary to borrowers from an impoverished part of the world who are attempting to start or run a business. The interest rates charged on the loans are typically far less than the entrepenuer would be charged in their local market. The creation of jobs, stimulating the local economy, and reducing poverty are the primary goals of a microfinance programs which still can generate positive investment returns for investors. There are many microfinance institutions who cater to institutional investors or very wealth individuals (see list here). Money-rates.com is reporting on the sites below- which are micorfinance sites where a socially conscious individual investor can provide funds in small denominations to working poor people across the world in the form of an investment and not a donation.
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MicroPlace provides everyday investors with the ability to make investments in the microfinance industry. Through MicroPlace, an investor can make investments that earn financial returns while having a positive social impact. Investors pick loans terms from 2 to 4 years with rates ranging from 1% to 3% with a minimum investment of $100. Microplace was started by Ebay in 2007 |
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Your investment in the MicroVest mPower Program will support microfinance institutions providing small loans to poor entrepreneurs - directly empowering them to better support themselves and their families. This program is administered by Calvert Foundation, and capital raised will be primarily lent to microfinance funds administered by MicroVest Capital Management. While helping poor families to grow their business, investors earn a financial return when the loans are paid back with interest. You may choose your return for 1 and 3-year notes, returns are 0%-2%; for 5, 7, and 10-year notes, returns are 0%-3%. |
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Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can sponsor a business and help the world's working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you've sponsored. As loans are repaid, you get your loan money back. Kiva is a a direct-lending social microfinance site as opposed to a fund so investors may want to fund more than one loan to diversify risk. |
* The accuracy of the information above is not guaranteed and should not be construed as investment advice.
Posted 4/17/08