Anyone fancy a $25 chance to help a poor entrepreneur?

vivatifosi

Wheezy wrote: »

Thanks Viva, makes sense.
Sorry, didn't really want to put a damper on things. I hadn't heard from them before but will surely explore it a bit more.

No worries Wheezy. As I said, even though its only $25, I've taken 3 months of looking into them to get there. Its an organisation that people haven't heard of and its good to be uncertain otherwise we'd all be had in life as gullible mugs.

I've been interested in the Grameen Bank model of microcredit for some time and the organisation I've chosen is a Grameen partner. Another reason the loans are expensive is that (in the case of the one I've chosen) they insure against issues such as those using the finance becoming ill, so there is a degree of reassurance for the borrower too. I'd really like to see a Kiva UK or equivalent, but there isn't one yet that I'm aware of.

I get my first repayment of $1.50 in March and I'm so excited!

lemonjelly

vivatifosi wrote: »

No worries Wheezy. As I said, even though its only $25, I've taken 3 months of looking into them to get there. Its an organisation that people haven't heard of and its good to be uncertain otherwise we'd all be had in life as gullible mugs.

I've been interested in the Grameen Bank model of microcredit for some time and the organisation I've chosen is a Grameen partner. Another reason the loans are expensive is that (in the case of the one I've chosen) they insure against issues such as those using the finance becoming ill, so there is a degree of reassurance for the borrower too. I'd really like to see a Kiva UK or equivalent, but there isn't one yet that I'm aware of.

I get my first repayment of $1.50 in March and I'm so excited!

And you just can't fight it?;)

(to add in a serious bit Viva, kudos to you for raising the profile & asking the question).:)

vivatifosi

lemonjelly wrote: »

And you just can't fight it?;)

I wish I could sing like that!

A quick update: since I made my loan, the person I loaned to has received their amount in full and is no longer on the website, which is good.

blueboy43

thanks Viva - this is really interesting, I had heard of Grameen Bank and Mohammed Yonus but not heard of this scheme.

How long before in your case would you hope to receive the $25 back ?

michaels

Zopa is a bit similar - people can write sob stories why they need a loan for a plasma and new iphone (or whatever else) and lenders can choose to lend to specific people rather than just offering funds at a certain rate.

If you join there may be a RAF bonus in which case I would be happy to oblige.

vivatifosi wrote: »

No worries Wheezy. As I said, even though its only $25, I've taken 3 months of looking into them to get there. Its an organisation that people haven't heard of and its good to be uncertain otherwise we'd all be had in life as gullible mugs.

I've been interested in the Grameen Bank model of microcredit for some time and the organisation I've chosen is a Grameen partner. Another reason the loans are expensive is that (in the case of the one I've chosen) they insure against issues such as those using the finance becoming ill, so there is a degree of reassurance for the borrower too. I'd really like to see a Kiva UK or equivalent, but there isn't one yet that I'm aware of.

I get my first repayment of $1.50 in March and I'm so excited!

vivatifosi

blueboy43 wrote: »

thanks Viva - this is really interesting, I had heard of Grameen Bank and Mohammed Yonus but not heard of this scheme.

How long before in your case would you hope to receive the $25 back ?

It will take a little over a year. I don't intend to reinvest much before that, but if I get six to nine months in and they're repaying on time I'll probably put a bit more in. I'm not going to put a lot of money into this, but it seems a good idea if you can use the same money again and again to help people.

I should make it clear though that afaik Kiva is NOT an affiliate of Grameen Bank. If it was as easy to invest in them directly I would! It is purely that the partner that I have chosen is an afflilate of the Grameen Foundation. Unfortunately you can donate to the Grameen Foundation, but not make loans and I wanted a way of making loans as it makes the potential for poverty alleviation go further with the minimal input I can make at this point in time.

michaels

I think I may let my two girls choose a cause and monitor and may be even let them keep the capital repayments as well as the interest as a financial education / world knowledge exercise. Thanks for the idea VT

vivatifosi

michaels wrote: »

I think I may let my two girls choose a cause and monitor and may be even let them keep the capital repayments as well as the interest as a financial education / world knowledge exercise. Thanks for the idea VT

Sorry michaels, I should have made clear, the donor doesn't get the interest. AIUI its used to cover scheme costs.

markharding557

Looks dodgy as a £9 note to me

vivatifosi

markharding557 wrote: »

Looks dodgy as a £9 note to me

Don't do it then.