Grassroots Microcredit

I was first introduced to Microcredit earlier this year and found it incredibly interesting. Unlike top down aid given from government to government, microcredit empowers those in need of aid to borrow, start businesses and ultimately repay the loans they were given. You can read all about the history of Microcredit on Wikipedia here.

Microcredit has been around for quite some time but received much more attention after Muhummad Yunis, the founder of Microlender Grameen Bank, received the Nobel Peace Prize last year.

I think one of the most brilliant aspects of the Microcredit movement is the ability of individuals like you and I to give directly to entrepreneurs all over the world: Ghana, Afghanistan, Ecuador, Azerbaijan, Ukraine, Uganda etc. One of the best places to lend is KIVA.org. The next time you want to give back I encourage you to check out the site and with a loan as small as $25 you can truly make a difference in someone's life. The whole process from registering to lending money takes all of 10 minutes. Remember it is not charity, it is a loan and the payback rates are astonishingly high. Here are the statistics as reported by Kiva:

• So far, Kiva has experienced a 100% repayment rate on all businesses with completed loan terms. (See our "Paid Back" section)


• Prior to Kiva, our Field Partners have historically experienced a >96% repayment rate with the poor they serve.


• In the past 30 years, over 100 million of the world's poor have received a micro-loan and demonstrated a >95% repayment rate

Think of it as investing in the world. You can check out a video by Nick Kristoff at the New York Times here. Thanks Mike for letting me know about Kiva. Mike is investing with a corn producer in Kenya, I chose a farmer in Cambodia. You should join us, both entrepreneurs still need more money.