In developing nations around the world, people with innovative ideas and keen skills are living in poverty with no foreseeable way out. In most of these situations, the lack of money and resources restricts any chance of growing a business or even dreaming about it. But microlending is proving to be a great solution, and a feasible one too.
Consider the story of Puja Patel, a single mother who lives with her four children in a village in India. With a $50 loan, she bought a sewing machine. She made clothes, sold them for a profit, and repaid the loan with interest. She was also able to save some money to buy books and send her children to the local school. This is microfinance in action.
I recently came across two websites that facilitate microlending directly through the web - Kiva.org and MicroPlace.com. These two sites have some important differences, but they both allow joes like you and me to invest money in changing peoples lives. A few weeks ago I set up a loan through Kiva.org. I choose Kiva because it connects lenders directly to borrowers. You can choose your business and get periodic progress updates. Here's a picture and link to a business I'm investing in:
Arshad Bibi's Group
