All You Guys With More Money Than Brains!

[Cry Me A River]

This just struck me as really, really cool:

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Kiva.org is the world’s first peer-to-peer, distributed microloan website. A great idea where PayPal meets Gates Foundation. The site allows you to lend a small amount of money, say $25, to needy microenterprises in developing countries. You receive repayment at the end of the loan period (normally 6-12 months) without interest. If they default on the loan, your loan becomes a donation – though none of the businesses have defaulted yet. A great low-risk, high-reward idea.


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Linky (http://www.kiva.org/)

As someone whose been involved in a couple start-ups, I know how difficult obtaining finanacing can be even in North America, I can't imagine in the third world!

A quick Google search looks like it's legit, even if a lot of the site does read like those Nigerian emails...

A similar organisation is the Grameen Foundation (http://www.gfusa.org/get_involved/) though you don't get the same level of feedback.

[slickpoppa]

[ QUOTE ]
This just struck me as really, really cool:

[ QUOTE ]

Kiva.org is the world’s first peer-to-peer, distributed microloan website. A great idea where PayPal meets Gates Foundation. The site allows you to lend a small amount of money, say $25, to needy microenterprises in developing countries. You receive repayment at the end of the loan period (normally 6-12 months) without interest. If they default on the loan, your loan becomes a donation – though none of the businesses have defaulted yet. A great low-risk, high-reward idea.


[/ QUOTE ]
Linky (http://www.kiva.org/)

As someone whose been involved in a couple start-ups, I know how difficult obtaining finanacing can be even in North America, I can't imagine in the third world!

A quick Google search looks like it's legit, even if a lot of the site does read like those Nigerian emails...

A similar organisation is the Grameen Foundation (http://www.gfusa.org/get_involved/) though you don't get the same level of feedback.

[/ QUOTE ]

So there's no interest and no penalty for defaulting? Just call it a donation to begin with

[jakethebake]

This makes far more sense than invesating the money in a start-up that you've evaluated and has a solid business plan. You wouldn't want there to be actual investors to make sure the money wasn't wasted and to keep things on track. You wouldn't want to actually earn a return on your "donation". /images/graemlins/confused.gif

[lu_hawk]

I wouldn't do this as a business enterprise for obvious reasons, and I wouldn't do it for charity because how the hell do I know where my money really ends up.

[shadow29]

Either Thomas Friedman or Paul Krugman (pretty sure TLF) talks about how awesome this micro-loan thing is.

Basically it helps people in developing worlds start businesses, which in turn helps stimulate their economies. Yeah, pretty sure TLF now. He talks about an example of a woman buying a cell phone in the Phillipines (or Africa, I forget) and then renting out talk time. Pretty awesome. For further discussion, (pretty sure) read The Lexus and the Olive Tree, by Thomas Friedman.

Even if I'm wrong, read the book anyway.

[Hiding]

Isn't this just charity without the tax break?

[newhizzle]

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A great low-risk, high-reward idea.


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i dont get the "high-reward" part

[TheMainEvent]

You would do this so people in 3rd world countries who have no ordinary means for generating capital can try to get on their feet. There is no benefit to the creditor, other than the satisfaction of helping people. Sorry if this is obvious, but no one who has replied so far has understood this.

[mason55]

I just saw a commercial during Nip/Tuck for the UN Year of the Microloan or something like that.

[astroglide]

http://en.wikipedia.org/wiki/Microfinance

never heard of this before, but i absolutely love the idea and i'm going to look into it right away. the loan part is cool for getting more people into it i guess, but i don't see why there should be any juice on it. this is so much cooler than other types of donations to me. the loan thing could make a cool surprise opportunity for people to expect to pay it back and then decline them when they try though.

[Cry Me A River]

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i dont get the "high-reward" part


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You help some dude start a business so he can feed his family.

Or, you could pay some guy a couple hundred dollars to puke up hot sauce. Your call, I guess..



I can't believe how badly you guys are missing the point. Most people do not want charity! These are legit business people who just happen to be... buying and selling goats. But this is the third world, when they need capitalisation, you figure they're just gonna put it on their Mastercard? Or maybe visit the neighbourhood Citybank?

Tell me what kind of business you're going to start for a few hundred bucks in New York City? Meanwhile, for cab fare or the price of a couple drinks, you can help get someone going...

They've yet to have ANYONE default on a loan. Think about that for a minute! Compared to us, these people are dirt, dirt poor and yet they manage to repay these loans even though there's no possible way to force them to do so.

Why?

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how the hell do I know where my money really ends up


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Like you have any idea what your bank really does with your money you have on deposit. As I said, everything I've seen points to this being totally legit. But, go ahead, do your own homework. The site's there, you know where Google is, have at it....

[Cry Me A River]

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the loan part is cool for getting more people into it i guess, but i don't see why there should be any juice on it.


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I think the difference between a loan vs charity is huge from a self-respect point of view. Asking a buddy for a loan can be tough enough, you ever ask a friend for a hand-out? Even the poor have pride.

It also helps keep the funds in circulation, without the constant pressure to recapitalise and seek new donations. ie: You loan someone $X, they pay it back, you can loan that $X to someone else. If you give them $X then the next time you want to help someone out, you have to give them $X as well. So the cost is now $2X. Eventually even if X is small you're going to get to $100X or $1000X where it may become difficult to aquire more funds. Loans are much more sustainable.

[jaydub]

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They've yet to have ANYONE default on a loan.

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This screams fraud / con... think about it for a minute.

[imitation]

Even capitalists should be jumping on this, i'd think it was pretty obvious that this is a win win no matter what side of the fence you sit on. Great idea.

[astroglide]

a couple bummers:

they don't actually have any place that you can donate money, there are no current prospects because of popularity

the business blogs are typed in by a pastor, as i had feared it looks like all of this is coming to them by the way of jesus christ. they're naming their companies christian names and thanking god profusely for the donations, etc. any means to an end but that's just a bitter pill to swallow.

[krimson]

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A great low-risk, high-reward idea.


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i dont get the "high-reward" part

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You donate $25 and you save $10 in taxes.