Alleviate Poverty, Earn Returns
The Microfinance space is now generating enough momentum to even attract the larger players. The latest is MicroPlace from eBay, which allows ordinary investors to buy securities aimed at improving conditions in the world’s poorest countries, investing as little as $100.
Microfinance is the supply of loans, savings, insurance and other basic financial services to low-income households and businesses, typically without collateral, typically conducted in emerging economies, where it is difficult to obtain bank loan, or where the amount of the loan required is too low for a bank to show interest.
It is generally found that the repayment of such loans is far safer in terms of getting the returns on time, at the same time offering an armchair approach towards addressing global poverty.
While sites like Kiva allow you to loan specifically to businesses, MicroPlace offers more of a capitals market approach.
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