Any microfinanciers here? (TB Microfinance Thread)
Through some of the people I work with, I have become very intrigued by microfinance. For those who don't know, microfinance is a source of finance for those who cannot obtain these services from traditional sources like banks. Many individuals will make small microloans to an individual, say $25 apiece and the borrower will receive $750 (from a total of around 30 lenders) in order to finance personal or business needs, and will repay that loan in a traditional manner.
It tends to be higher risk than traditional loaning, but I feel its worth the risk to help people in impoverished areas. I made my first microloan back in March, and have made a few small ones since then, but in September I decided I would make at least one $25 microloan every month. I even gave my family a $25 donation to make microloans themselves for Christmas.
What are your thoughts? Any stories?
- Timothy P. Lyons
Your Neighborhood Friendly Candyman