Kiva, thats kiva.org finds small businesses looking for small loans, then they let guys like me and you form a group and we loan them money. So 10 to 100 people chip. The minimum you can loan is $25. I have made 7 loans over the last 4 years, $50 or less each time. 5 are paid back in full, one is almost finished and never missed a payment. This is the first US loan, all the others have been in Mexico, Central or South America, you can choose from the list of stories. I like to loan to art, service, or manufacturing businesses, once to a lady that grew flowers.
The default rate is only a couple of percent. Amazing isn't it? The people taking the loan must go to a class on business and they are screened heavily to be sure they are serious, and it pays off. Most of the loans being sought are around $1,000. I have given 3 times a $25 gift card to kids to others so they would get involved. Together we have made about a dozen micro-loans. These loans would not be possible in a bank because they do not count determination and knowledge as an asset, or in the third world they can get loans for 50% interest or more from people who are better to steer clear of. I don't get any interest, I just get my money back if it is paid back. Pretty much no one takes their money out of Kiva, we just keep rolling it over to another person with a dream to prosper. Take your $25 and head over to kiva.org
I imagine Republicans hate KIVA. No profit for the lender.
ReplyDeleteRon
Sure they hate it, we are loaning someone money traditional banks believe are to low on the food chain, of the wrong class, to deserve a chance. These people are pulling on those boot straps we hear about, but for some Republicans those boot straps should come with a white face, a business plan and a golf game.
DeleteBut most of all they believe we (those who make the loan) are idiots for not making a profit, it is incomprehensible to them.
To be clear these people do pay interest, a very small rate to cover the expense of managing the loan and keeping tabs on them, we who put the money in the pot do not get any interest.
It’s great to see businesses flourish this good. Even with a small loan, I am sure that one can have a good business built with it.
ReplyDelete