I feel like every single holiday season, I'm becoming progressively more repulsed by the commercial Christmas - the incessant ads, the reminders that only 3 days are left to show your love, the gift cards which are just a more limited form of money. However, I am still attracted to the idea of giving, which to me means appreciating all that I have and giving to those who are less fortunate. Recently, I have been particularly attracted to the idea of
microfinance. I plan on investing through these organizations this Holiday season.
Kiva: I started investing through Kiva last year. Through Kiva, you lend as little as $25 to a specific entrepreneur or business. This money is pooled with money from other investors until the amount requested is raised. This money is disbursed to the entrepreneur and then repaid generally in the next 12-18 months. Kiva is a nonprofit organization so no interest is accrued, however, you can withdraw any money that has been fully repaid. So far, I've loaned to a taxi driver in Honduras, a clothing sales booth in Moldova, and a home products sale store in Moldova. These have all been paid back in full. I also have active loans to a family in Cambodia, a man involved in flour production in Azerbaijan, a taqueria in Mexico, and a beauty salon in Mondova. It's really fulfilling each month to see loans paid back each month. I highly recommend Kiva as a low risk way to get involved in financing small businesses in underdeveloped countries.
MicroPlace: An EBay owned company, MicroPlace loans to microfinance companies around the world. People purchase securities in these companies for as little as $100. Although there is less of a sense of intimacy since loans go to companies rather than directly to people, loans through MicroPlace do generate interest (around 2-3% a year).
MyC4: Still in beta testing, but loans can currently be made. MyC4 funds small businesses in Africa, and people can bid on the interest rate. The annual interest rate can be rather high (10-20%) making MyC4 an option for those looking to invest money.
For me, these are options for those with only a small amount of money to make a difference in the world.
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