Using eBay for Microfinance

Most people have ever heard about eBay or have used it. In just 15 years of history, eBay has become one of the most widely used media for online buyers and sellers. And it has been successfully traded in peer - to - peer format. From individuals to find junk in the attic, personal purchase options are infinite, spanning hundreds of categories and subcategories. Most of the people who have traded something with eBay know that they will be settled on a regular basis through Paypal (eBay acquired in 2002).

Are some emerging companies tying entrepreneurs and craftsmen from developing countries to online markets that produce products using microfinance? Sign up! In addition to this, niche versions such as Amazon, eBay, Toms, Etsy etc. When I thought about this idea in university economics four years ago, it looked interesting and I felt it felt good. In theory, it will link poor craftworkers to the online market without accessing the Internet to expand their business. In fact, the increase in globalization and Internet access weakens this idea. Considering that I import goods from remote parts of the world, logistics will be confusing. This idea is wonderful, but in order to succeed we need great ideas.

In the context of this article, I think it is important to explain the experience of microfinance. In 2010, my wife Sheetal and I founded a low interest microfinance institution (MFI) called Shanti Life. It occupies the position of charity in the United States, Canada, England, India. I think we are the only international microfinance institution with charity status in India - this is a big problem. Others must cooperate with Indian partners - you lose quality control and believe in me, this is not good

Microfinance institution (MFI) is an organization that provides microfinance services from small non-profit organizations to large commercial banks. Currently, there are 10,000 microfinance institutions around the world. When you join a credit union, cooperative association or other informal agency, there are 100,000 institutions, serving 150 million people worldwide. By expanding access to financial services, microfinance can help people to escape from poverty. Traditional banks often can not afford poor services due to the associated maintenance costs. For banks, microfinance is irrelevant and banks have no motivation to design products for small savings. However, for low-income people struggling in developing countries, a $ 50 loan may be a way to get started and eliminate poverty.