Thursday, December 5, 2013

microloans blog

Micro finance- a form of financial services for entrepreneurs and small business lacking access to banking and related services

Micro loan- a small loan given to individuals who might not have access t typical banking services, usually to start o expand small, self-sufficient businesses.

Who gives out micro-loans?
one of the best- known leaders is kiva.org
- kiva has made 10.6 loans
- kiva's current payment rate  for all is its partners is 99.01%

Who receives micro-loans? 

  • micro-entrepreneurs who are trying to start a small business
  • villagers needing to fund a clinic, hospital or other health care facility.
  • teachers trying to run a school
  • students wanting to further their education 
Problems with micro-loans
  • High interest rates- sometimes as high as 23%
  • The cost of providing banking services to those living in poverty is high.  being the company to process one $500,000 loan, or or five hundred thousand $1000 loans.  
Micro-loans are a help, not a cure
  • banking services are often unavailable to poor people
Challenges 
  • there are many kinds of challenges faced by developing nations
  • some can be alleviated through micro-loans
  • poor health care

Malaria 
  • its a mosquito-borne infectious disease
  • humans and animals can be infected through the bite of a female mosquito
  • no vaccine exists 
  • it kills around 665,000 people a year, many of them children in Africa
  • mosquito nets can be effective 
Philanthropy- is the generous donation of money to good causes, and Bill and Melinda Gates are the second greatest philanthropists in history (28 billion 1/3 of their wealth).
they support research and development for a vaccine, diagnosis, and mosquito-control measures- like mosquito nets.  




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