A Social Business, Microlending

What is micro loan? Briefly, microfinance is to provide a small amount of money at low interest rates to urban and rural low income people. It began 40 years ago when a man named Muhammad Yunus was visiting his family and his country, Bangladesh. When he and his parents were looking for a better future, Muhammad Yunus left his homeland - East Bengal. He received a PhD in economics from Vanderbilt University in Nashville, Tennessee.

Internationally, the idea of ​​using microfinance as a means to get people out of poverty is not new. Grameen Bank, thought to be the grandfather of microfinance, began in Bangladesh nearly half a century ago. We have been fans for a long time. They were very successful in destroying the cycle of poverty and their founder Mohamed Yunus received the Nobel Prize in his work in 2006. Grameen Bank offers microfinance (often called microfinance), which often can not be borrowed without collateral. Bank launched a research project to study how to design a credit delivery system to provide banking services to the rural poor - an organization known as non-banking

The microfinance industry is working on eradicating poverty and providing low barriers to people who have suffered historically disadvantaged. Critics assert that the only individuals and organizations derived from this practice are lenders with high interest rates and unpaid micro loans in their pockets. Either way, microfinance has made great progress in the economic aspect we know today. However, in the decade that microfinance gained fame, the so-called "bottom of the pyramid" solution leads to a strategy that thinks simply will not work out, in fact it is exacerbating poverty. At our R & D stage, Everex learned about the problems MFI faces and studied possible solutions for specific block chains.

Kiva is a nonprofit organization, so it seems that a big misunderstanding has spread. Microfinance is a kind of nonprofit organization. In fact, it is a sort of loan and finance that happens to bring a lot of social benefits. I believe that the element of "social benefit" is a part of confusion. People usually do not recognize that social benefits are obtained not only from non-profit organizations but also from financial institutions, companies, and start-ups (like seeds!). Microfinance is like they sound. The loan was supposed to be repaid. They are huge and independent categories and are a powerful way to create sustainable social benefits. As money has been repaid, it can be plus again, which means that microfinance institutions can help millions of people in the near future.