Online Microlending

Online lending is a new model of microfinance funding in which retail loans or investments are made over the Internet by average people around the world.

With two web based organizations, Kiva.org and the recent launched MicroPlace (October 2007), the phenomenon of online microlending is growing reaching hundreds of people that sign up each day to provide loans to microentrepreneurs around the world.

Both Kiva and MicroPlace, the two major players in online social lending to MFIs, were founded by young, California-based, socially-conscious entrepreneurs. But while Kiva.org is a non-profit that connects online lenders with microentrepreneurs through MFI partners, MicroPlace is a for-profit online broker-dealer, wholly owned by eBay, that connects retail investors with MFIs.
 
MicroPlace, works through community organizations based in the borrowers’ countries.  Investors purchase SEC-regulated debt securities from security issuers (currently Calvert and Oikocredit) on MicroPlace.com to finance specific MFIs. The investments provide a small rate of return (currently 1.25% - 3% per annum but soon up to 7%). As of April 2008, MicroPlace offers 34 investments in MFIs in 22 countries.

Kiva financing is offered to MFIs at 0% interest and lenders do not receive any interest on the loans they fund through Kiva, only repayment of the principal. "In just two years, Kiva has provided over $25 million in microloans from Cambodia to Togo to Iraq. At their current growth rate, they are raising $1 million every 12 days."

Gender, Migration and Remittances' Programme

"In 2005 It was estimated that one of every 35 people lived outside of the country where he or she was born. Nearly 49.6% of the 190 million immigrants were women. The money that migrant sent regularly to their countries of origin seems little at individual level, regardless at global level it doubled the official international aid in 2006. Alon. . .

Added by  Emmanuel Asomba  May 7, 2008
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Fact-Sheet on Remittances in Colombia

"Colombia has an area of 1.141.748 km2 and a population of 44.531.434 inhabitants, of which 72,4% is urban. Sixty-four percent is below the national line of poverty according to data of the United Nations Development Programme (UNDP). It is estimated that 7,3% of the population lives abroad. The three main countries of destiny of the migratory flow. . .

Added by  Emmanuel Asomba  May 7, 2008
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  Colombian women in Spain invest in the well-being of their families

"A new study analyzes women’s changing roles in Colombian migration and assesses the impact and uses of remittances sent by women migrants on the development of their communities of origin". UN-INSTRAW; IOM (2008) Joint Press Release.

Added by  Emmanuel Asomba  May 7, 2008
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CGAP/MFMI Donor Training Course: Croatia, September 2008

CGAP and MFMI are pleased to announce that the training course, Building Inclusive Financial Systems: How Can Funders Make a Difference?, will be held in Croatia from September 8-12, 2008. This one-of-a-kind course is tailored specifically to donors, investors, and policymakers interested in keeping up with the rapidly evolving world of microfinan. . .

Added by  Zoe Gardner  May 6, 2008
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  How much does it cost to deliver and collect one rupee of microfinance?

The article discuss in form of an interview, with a successful practioner in micro finance. It portrays, micro finance is the bridge building process between poor and society, where no other formal bridge exists. To that way, mico finance practioner assumes, that is is not business like other business, but with a social cause.

Added by  PROF. SAPOVADIA  May 5, 2008
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  Respect for women’s rights built into a Model for self-financing, ecological, sustainable, local integrated development projects.

The article describes in detail how respect for women's rights is built into the Model for self-financing, ecological, sustainable, local integrated development projects for the world’s poor promoted by the Dutch NGO Stichting Bakens Verzet (“Another Way”). The Model is in the public domain and available for use free of charge. It can be downloade. . .

Added by  Terrence Manning  April 30, 2008
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Imp-Act Consortium launches case study series "SPM in Practice"

New series captures good practice and lessons learnt from seven microfinance institutions (MFIs) managing their social performance. Learn about how leading MFIs are defining their strategies to achieve their social mission, tracking their progress towards their social objectives and using this information to improve overall organisational perfor. . .

Added by  Katherine Knotts  April 30, 2008
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Join the online Social Performance Management Network

I wanted to let you know about an exciting new initiative that to date has attracted over 170 people from around the world – an online Social Performance Management (SPM) Network. The aim of the Network is to connect individuals and organisations who are committed to managing and achieving social performance in microfinance. This is also a space . . .

Added by  Katherine Knotts  April 30, 2008
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  How to measure Microfinance success?

It appears that there is no universal index to measure Microfinance success. Actually it is rather confusing for the new comer to understand whether Microfinance is just another banking exercise, one that relaxes risk considerations to provide the poor access to capital. But was Microfinance initially conceived for this purpose alone, or was it con. . .

Added by  Agostinho Rodrigues  April 28, 2008
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Regulation and Supervision for MFIs: Boon or Bane?

Micro lending through microfinance institutions (MFIs) has become a popular vehicle for financing the poor. However, the dangers linked with unbridled growth and expansion of microfinance in developing countries including Bangladesh has propelled financial regulators to contemplate framing policies for this sector, or to include it under the framew. . .

Added by  GHULAM MURTAZA  April 26, 2008
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