Friday, March 20, 2009

Helping the World's Poor through Micro-Lending

Recent organizations have made it easier for individuals to relieve impoverished individuals around the world who need small loans to either start a new business to sustain themselves or to improve their small businesses.

One is Kiva. The process is simple. The minimum amount you can donate is $25. And then you choose a region in the world you are interested in lending to, and once you pick that region, you scroll through the different people asking for loans.

Once you lend, you get periodic updates from Kiva informing you of the status of repayment. Even if you don't receive the entire amount, you can relend to another borrower, as long as you make up the difference to amount to at least $25 for another loan.

It is a great program and a good way to lend directly to people who want to start some sort of enterprise and need a small boost.

It's also a good way to donate, which is essentially what this is if you continue rolling over the money to other borrowers, in addition to donating to more traditional organizations which use part of donations for their operating costs.

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