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 ...

Last February, Social Edge-an online program of the Skoll Foundation-launched the feature series "Unitus Microfinance Case Studies" in support of their mission to inspire and support social entrepreneurship around the world. Social Edge's Executive Director Victor D'Allant, who goes by "Global X" on the blog, began constructing the series when he attended the Unitus Leadership Summit last October. 

Unitus presents a series of case studies explaining how ...

This highlight presents a paper prepared by Getaneh Gobezie [Amhara Credit & Saving Institution], a dgMicrofinance topic Guide, for the next Annual Conference of the Association of Ethiopian Microfinance Institution (AEMFI).

''Market failures in rural finance, and related issues of adverse selection, moral hazard, ...

Although men, as well as women, face difficulties in establishing an additional enterprise, women have barriers to overcome. Among them are negative socio-cultural attitudes, legal barriers, practical external barriers, lack of education and personal difficulties.

In spite of this, for women and especially for poor women, microentreprise ownership ...

Almost 12,000 microfinance institutions (MFI) exist worldwide today, launched by private capital sources aiming to profit from investment making micro-loans to small businesses in developing countries.  With microfinance funding from private investors tripling to more than $2 billion in 2006, a closer look at MFIs is instructive.  Some of these institutions can be fly-by-night.  With interest rates to borrowers often up to 85 %,  micro-loans from these MFIs can sometimes lead to additional financial burdens, rather than poverty reduction.

In its December 2007 issue, Forbes Magazine focused on the new microfinance investment industry by producing its first-ever list of the world’s top microfinance institutions. Because the Forbes’ rankings attempt to measure financial performance, not the social benefits of any microfinance institution, institutions on the list were required to have met a range of criteria established by independent microfinance rating services and to have conducted audits for 2006.

Microfinance institutions from South Asia, the Balkans, and Latin America made the Forbes list, with some representation from North Africa. Grameen Bank and Bangladesh Rural Advancement Committee (BRAC), both from Bangladesh, top the list with the overall best ratings.

Graphic: Courtesy Forbes Magazine

Almost 12,000 microfinance institutions (MFI) exist worldwide today, launched by private capital sources aiming to profit from investment making micro-loans to small businesses in developing countries.  With microfinance funding from private investors tripling to more than $2 billion in 2006, a closer look at MFIs is instructive.  Some of these institutions can be fly-by-night.  With interest rates to borrowers often up to 85 %,  micro-loans from these MFIs can sometimes lead to additional financial burdens, rather than poverty reduction.

In its December 2007 issue, Forbes Magazine focused on the new microfinance investment industry by producing its first-ever list of the world’s top microfinance institutions. Because the Forbes’ rankings attempt to measure financial performance, not the social benefits of any microfinance institution, institutions on the list were required to have met a range of criteria established by independent microfinance rating services and to have conducted audits for 2006.

Microfinance institutions from South Asia, the Balkans, and Latin America made the Forbes list, with some representation from North Africa. Grameen Bank and Bangladesh Rural Advancement Committee (BRAC), both from Bangladesh, top the list with the overall best ratings.

Graphic: Courtesy Forbest Magazine