Posted by Dario Meli
* This blog post is part of Invoke’s participation in the 2008 Vancouver Blogathon for Charity

5. It isn’t a handout (lender) - From a lender’s perspective microfinance is excellent because you get to directly effect somebody’s effort to better their lives. And once you have aided in bettering the community you get your money back so you can do it all over again! With just $25 you can continually lend to new, enterprising individuals. This is seriously rewarding. Start now.

4. It isn’t a handout (recipient) - People who work hard and earn the things they have are more responsible with them than those who simply receive a handout. This is not a new concept. Having a sense of empowerment and control over your destiny is an exceptional motivator.

3. Women - An overwhelming number (97%) of participants/recipients in global microfinance are women. This suggests microfinance helps to correct discrimination in capital markets.

2. Loan repayment rates - According to kiva.org’s records the loan repayment rate is 98.3% (default rate: 1.7%). Grameen Bank’s default rate is 2%. This is far superior when compared against the 60-90% default rates in some of the same region’s commercial sectors. It also bests default rates in the United States which is approximately 4%.

1. Anybody can participate - It has never been easier for average individuals to make a difference. Take 4 minutes to setup a Kiva account now and change the world!

5 Reasons Microfinance Is Excellent

Posted by Dario Meli
* This blog post is p

Earlier this year, while hanging out with the CTO of Kiva.org, I was introduced to Shawn Smith who runs Global Agents for Change. At first I wasn’t drawn to what they were doing because it sounded a bit odd: ride bicycles from Vancouver to Tiajuana in an effort to raise awareness and money.

Once we got to talking, I realized that this is actually something much more than a bike ride. It is a massively empowering organization, and it also has a dynamic, driven leader in Shawn.

Kiva’s mission is to connect people through lending for the sake of alleviating poverty. Kiva is the world’s first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world.

The facebook Kiva application lets a user grow their funds by using the facebook platform as a means of soliciting friends for monetary contributions.