Micro-Loans Online
This year the father of micro-finance and founder of the Grameen Bank won a Nobel Peace Prize for his work in inventing and promoting micro-loans in the developing world. A micro-loan is as little as a few hundred dollars invested into a one-person business with minimal qualifications. That tiny borrowed amount can launch a vegetable stand, repair shop, or bicycle taxi -- a living in other words. As each micro-loan is repaid (and most are), the effects of that small goodness are amplified and leveraged by being loaned out and invested again and again. Micro-loans are the world's only perpetual motion machines.
Previously I've recommended the micro-finance cool tools of Trickle Up, Opportunity International, and my favorite, Heifer International, as three ways to leverage small amounts of money for maximum global good. (Micro-finance programs are not a panacea. For a critique start with this article in Forbes.)
The news now is that it is there are many other outfits that offer individuals (like us) ways to leverage as little as fifty dollars via micro-finance programs online. Unleashing compounding good is only a few clicks away. Make a loan, or outright grant, using your credit card, or even PayPal.
Grameen Foundation
Inspried by the original Grameen Bank in Bangladesh. Minimum contribution, $100. One of their projects is Village Phone -- cell phones that women buy on loans and then can rent to others for income. "The Village Phone program in Uganda, the first of GF's efforts to replicate the pay phone program outside Bangladesh, continued exceeding expectations in 2005. More than 3,500 microfinance clients have bought and now operate a Village Phone as "Village Phone operators." Besides the boost to operators' incomes, the program is creating a national telecommunications network. Of Uganda's 56 districts, 53 now have at least one Village Phone operator. Often, Village Phone is the first local telephone that villagers have. Having a quick means to communicate has contributed to higher levels of productivity, savings, and safety for entire communities."
http://www.grameenfoundation.org/get_involved/
Namaste Direct
This is one of the most direct person-to-person micro-lending programs. When you give to Namaste Direct, you are informed of the person who receives your loan, how they used the money, and their progress. ND can also arrange a visit to the lendee -- this will turn your loan into a life-changing experience for you as well. But because of this directness the giving area is limited -- currently to Mexico and Guatemala. No minimum contribution.
http://namaste-direct.org/
FINCA Village Banking
FINCA makes loans directly to the poorest villages. They aim their lending to 10-50 neighbors who come together to form a village banking group, and who in turn decide who should get what and how much. FINCA specializes in small loan amounts ($50-$500) for the very poorest. The minimum contribution to their program is $50. While a few hundred dollars is powerful, with only $5,000 you can start a whole village bank for micro-loans, thereby compounding the power of micro-finance to an entire small community.
http://www.villagebanking.org/donate-vbsponsor.htm
Unitus
Minimum contribution, $100. Since they accept PayPal, I found this program really easy to contribute to. (Get with it, others!) Unitus, like Accion below, funds other local micro-finance programs, rather than direct loans to individuals. "Unitus seeks to identify highest-potential emerging MFIs (Micro-Finance Institutions) and help them to achieve exponential growth."
http://www.unitus.com/sections/involved/involved_cu_main.asp
Accion
Accion is an umbrella institution providing technical assistant to local micro-lending institutions. Minimum contribution, $50."ACCION is leading the effort to make micro-lending financially self-sustaining. Micro-lending programs have the potential to cover their own costs. The interest each borrower pays helps to finance the cost of lending to another. In most poverty alleviation efforts, every person helped brings the program closer to its financial limits. Successful micro-lending programs, on the other hand, generate more resources with each individual they help. As a result, well-managed micro-lending programs generate more income than they spend. Once they become economically viable financial institutions, they have the ability to access a virtually unlimited source of lending capital - the billions of dollars invested in the world's financial markets. Several of ACCION's partners have already made the transition from nonprofit, charity-dependent organizations to banks or other regulated financial institutions."
https://www.accion.org/involve_make_a_donation_form.asp
My suspicion is that over time the inherent self-sustaining qualities of micro-lending will mean it won't need charitable support to keep expanding. But the idea is still in its infancy; billions of people are still out of its reach. That means that every dollar given today will not only cascade its blessings on many others, but funding micro-lending now will also greatly accelerate the time when anyone in the world will have access to a small loan.
God bless us all, everyone.
-- KK
Favorite (15)
justmoney
"Only economist and madmen believe exponetial growth can continue in a finite world."
The world economy just collapsed because of compunding debt at a relatively low interest rate.
Kiva loans carry anywhere from 20% to 86% interest. Kiva loans inject only principal in a community. When the loans are repaid the principal is then removed from the 3rd world community. The usury interest payments then concentrate a large portion of the communities pre-existing money in a few hands. The newly created banking class. A kiva banker making hundreds of loans now collects 20% or more of each person labor.
Even if the new bankers on the scene spend all that money back into the community they end up with what they really want whichs is the land and material wealth.
Please think a little deeper on this matter. You are empowering a great evil enterprise.
Many previous not for profit micro lenders are now large for profit lenders.
These micro lending outfits introduce the 3rd world to debt slavery that the developed countries has been living under for years.
Google and watch "Money as Debt" to beter understand how money and banking works.
If you followed God's plan for lending you would lend at zero interest and not expect a return. See Luke 6:35 also all other religions also teach not to charge interest, to foregive debts and return foreclosed property(see Jubilee year)
Check out new domestic project http://justmoney.zapto.org/bbbl coming soon.
Just sit down and do some simple math. Multiple you loan by millions of others and compund thse interest payments over a few years. You will see how much damage you are doing.
It is funny that you end your blog enter with "God bless us all" when you advocate lending at interest which is against God's instructions.
Kevin Kelly
@Justmoney: You are right about Luke 6:35. But you are wrong about money in general and Kiva in particular. The amount of money is not fixed to a zero-sum in a community and Kiva expands it. And there are no "Kiva bankers" -- or rather all lenders are the bankers. We should welcome as many alternatives to lending as possible, and I wish the best for your enterprise.
Wes
Just money. You are incorrect. Giving money to them creates a dependence. think WELFARE!!!. If you want to lend money at 0%, please sign me up. My kid is going to college next year.
BTW, the collapse was more due to overvaluation rather than too much debt.
Give it as a loan with no expectation of your withdrawal. If it defaults, fine. Even at the 20-30% APR, it is lower than their own local rates.
do nothing and staus quo. Loan and some good comes of it.
With economic development, often comes debt. Get over it. Learn some real world economics
auroranorth
these programs seems inherently discriminatory, i could find nothing for Iceland, North America, Ireland, Europe, Finland, The Ukraine, or Russia. I would love to see American Russian friendship bonds made stronger by a program that help isolated poor like this in White areas. how about Appalachia, Or The tribal areas of this nation ? I think I could find many who would like to set up a Native American micro loan system. and where is it written that a (god forbid the politically incorrect ) White person could not need this help ?
Kevin Kelly
@Auroranorth: The CEO of Kiva told me they will be recruiting borrowers from the developed countries soon. So successful people in India can loan to those in the US.
Omar
You know, I am all for helping people with creative and imaginative ways to encourage economy and commerce for people who have ambition, a good idea and are willing to work hard at living a dream to better themselves, their families way of life and the communities in which they live, wherever that may be. I know how frustrating that can be and I live here in the United States, I am a citizen that doesn't have familial resources or the opportunities from outside financial resources, believe me I have been searching for a couple of years now. I have a dream, a goal, I'm ambitious and I work very hard about 60 hours a week, sometimes more, while going to school to better educate myself. At this time I still haven't been able to find any "reasonable" resources to do the initial start up for my business dream. We need more affordable and accessible funding for those of us in whatever country we are from or live in to build better futures for our families and communities and ultimately a better planet. Thanks for taking the time to read this.