I work in fundraising as my day job, so it’s interesting to me to learn about all of the different forms it can take. Recently, I’ve been reading a lot about microfinance. It’s certainly not a new concept, but I do feel as though it’s becoming increasingly popular as of late. As Wikipedia defines it, “Microfinance refers to the provision of financial services to low-income clients, including the self-employed. Often, the term also refers to the practice of sustainably delivering those services.” Basically it’s a bank of sorts, where individuals contribute money as a loan to another individual, who use the windfall in order to improve upon or start a sustainable business. Just like a regular loan, they sign a contract with terms that involve the repayment schedule. Am I blabbering? In any event:
I loaned money to a business owner through Kiva.
After doing some research, I found Kiva, an organization that streamlines the process. You can search from thousands of people and families to find the perfect fit for what type of person/business you prefer to support. I chose to loan to a woman in Nigeria who plans to use the loan to buy a freezer for her local shop so that she can stock more products and improve upon food safety.
Fun factor: 10