Living : Money :

Ever spotted a friend for a couple cocktails?

01.24.2008

Submitted by tmeronek on Thu, 01/24/2008 - 1:05am.
The Bite:
Like, all the freakin' time. For the cost of those two cocktails at a swanky bar, you can actually provide small loans to people in developing countries, giving them the chance to start their own businesses or get sustainability training. It's called microlending - and like it or not, there's a better chance you'll get the money back from these loans than from your alkie friends.    
The Benefits: 
  • Helping peeps help themselves. More than one bil people live on less than $1 per day, so even tiny loans can help someone buy farm equipment or pay for a new restaurant license so that eventually they can support themselves without dependence on foreign aid.
  • Getting good news. All of these organizations update you on the achievements of the borrowers (many programs let you select the individual project you wanna support).
  • Lending with confidence. Some orgs get your money back to you (alternatively, you can just donate), and you can even make a small profit. The default rate is as low as 0.2%, meaning 98.8% of borrowers pay back their loans (more than you can say about Drinky McDrinksalot).
  • Eco-commitments. FINCA and GlobalGiving give support to entrepreneurs (such as sustainable farming training) trying to make an eco-difference.
Personally Speaking: 
Toshio just opened a MicroPlace account, and although he's not planning on getting rich here, at least his tiny investment with the Cambodia Rural Economic Development Initiative is going to a good cause.
Wanna Try: 
  • MicroPlace - eBay's lending site, where you can make a return of up to 3% off your microloan investment.
  • FINCA - sets up community banks in small villages in developing countries.
  • GlobalGiving - offers a money-back guarantee if you don't like the results, and heads up American projects like helping people affected by Hurricane Katrina.
  • Grameen Foundation - the original microlender, it's credited with reducing rural poverty in Bangladesh by 40%.
  • Kiva - lets you choose a project; loan $25 or more, and you'll receive updates on how the money's being spent - and the idea is that you'll be repaid.

Cocktail Fact

In Canada, loans with a more than 60% annual interest rate are illegal; in the United States, most payday loan companies (think Check 'n Go) charge around 400%.

Bang For The Bite

If 10,000 Biters lend $25 to international entrepreneurs, we'll pool enough money to help stock a beauty salon and a clothing shop, start a party rental service, train women farmers in sustainable agriculture, and build community-run eco-lodges in Madagascar and Nepal.

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Online Marketing Promotion  on June 04, 2009 at 11:12 PM 1
Thanks for sharing nice idea. I really admire it. It's great idea to give small loan to many people. But, you must have to advertise it, before starting work at your suggestion. Online Advertising Marketing & strong Online Marketing Strategies is best way to advertise it. Online Marketing is the cheapest way to advertisement.

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