Comments on: Microlending: Earn Money while Ending Poverty

By: Ravishankar

Ravishankar — Fri, 10 Apr 2009 12:08:20 +0000

I am following the financial markets and i am looking for a loan to consolidate my debt market.Kindly is there any one who can help.I promise to repay the amount in installment.
Ravi

By: sembatya nabeel

sembatya nabeel — Wed, 06 Feb 2008 10:08:34 +0000

keep up t records

By: Jerad Kaliher

Jerad Kaliher — Wed, 31 Oct 2007 07:03:53 +0000

@lordmanilastone, when push comes to shove it is just a great idea to fund inspiring entrepreneurs. I almost feel ashamed because I was so skeptical when first introduced to the idea. It helps chalk one more up for my humility.

By: lordmanilastone

lordmanilastone — Tue, 30 Oct 2007 17:56:38 +0000

i don’t know much about the complexity of financial and economical issues, all i know is that the idea is really a smart way to alleviate the condition of the poor, i know poor people just like in my country have lots of good and creative business ideas but they don’t have the capital…^^

By: Jerad Kaliher

Jerad Kaliher — Tue, 30 Oct 2007 05:20:48 +0000

@Jay, actual default rates are pretty low across the board in the US (about 5%). It’s the late pays that range in the 30% range for some credit tiers (C- to D).

That’s really interesting information, thank you for sharing. I had no idea that they needed to make deposits for months before they are allowed to take out a loan. And taking classes on personal finance, how ingenious!

The system of banking in the US (mainly credit cards and I’m also taking a stab at the mortgage industry pre-reform) is mainly predatory. Their best customers are the misinformed. They make late payments and take 30 years to pay off a measly balance with minimum payments. It almost makes you wonder. What if it was mandatory to go through finance courses in school at a young age? Would it make a difference?

By: Jay Ehret

Jay Ehret — Tue, 30 Oct 2007 04:14:38 +0000

Hey Jerad,
I’ve seen microcredit in action on mission trips to both India and Bangladesh. Based on the models I have seen, it is not a surprise there is a low default rate.

First, the microcredits I have been exposed to deal only with women. Men will simply not pay the money back as dependably as women. Second, the women must make some deposits into the microcredit for several months before they are allowed to get a loan. Third, the women must be part of a group and have several co-signers to guarantee the loan. Fourth, the women must take classes and learn about finances before receiving a loan.

Granted, my exposure to microcredit has been only through Christian organizations. Probably not all operations are run like this. But imagine if Americans had to go through this same process in order to get a loan. What would be our loan default rate?

By: Jerad Kaliher

Jerad Kaliher — Mon, 29 Oct 2007 01:07:56 +0000

@Connie T., I would pay money to see this topic debated by Milton Friedman and Noam Chomsky. I’ve always been a capitalist at heart and I’ve never seen the value in giving away anything.

Lending debt to debt is scary at the micro level. In fact, I don’t recommend it unless you want to become the financial equivalent of an extreme sports junkie. Countries play this game all day with bonds and currency. It might hit a little closer to home when your moving $30k rather than $30 billion.

By: Connie T.

Connie T. — Sun, 28 Oct 2007 16:12:46 +0000

Capitalistic means towards socialist ends? What a great incentive to invest. Sign me up, I’d be happy to be a microfinancier. Its not just an investment into one person’s life, its good for all of society as a whole.

As for lending off credit card borrowings: scary but cool. I wish I was less afraid to take risks, but the idea of enslaving myself to a credit card company by being in debt is pretty intimidating, especially if Joe Schmoe doesn’t pay me back.

But, what the heck, you’ve got to be in it to win it.

By: Jerad Kaliher

Jerad Kaliher — Sun, 28 Oct 2007 14:00:45 +0000

@Zath, when it comes down to the semantics the idea just makes since to me. I’m not even sure this could be considered investment, because at most your just getting your money back + inflation. It’s more like a proposition to help people get on their feet and out of their bad situation. I’m just glad such a radically innovative way of looking at banking has made it this far.

By: Zath

Zath — Sun, 28 Oct 2007 10:11:34 +0000

I really like this concept, obviously you’re not going to throw all your cash at this, but it’s a great option in terms of investing a percentage of your cash that’d you’d normally put into savings etc.

This is a really good opportunity for people to make a difference rather than like you say, throwing money in the general directions of these countries and just hoping it makes a difference, very good karma indeed!