Posts Tagged ‘microcredit’

RKC Microfinance – Leaso Kerisimasi

Thursday, July 9th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

Leaso (IVA A)Borrower Name : Leaso Kerisimasi
Village/Centre : Iva A

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Retail
Business Activity : Retail

Loan Use : Purchase cement, sand, dust

Leaso Kerisimasi, 25, is married with two children and lives in the village of Iva, Savaii.  She has over five years experience in the brick-making business and she sells to the public five days per week. Leaso has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the brick business is 300 ST (~120 USD).  SPBD loans are Leaso’s only access to capital because she was never able to qualify for a loan at a traditional bank. Leaso will use her loan to purchase the production materials, including cement, sand, and dust, that will enable her to grow and maintain the brick businesss. She is a multi-talented young mother and will continue to run the family plantation alongside her brick-making enterprise.


Share

RKC Microfinance – Salafai Suaesi

Thursday, July 9th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

Salafai (SALELAVALU UTA)Borrower Name : Salafai Suaesi
Village/Centre : Salelavalu Uta 1

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Food
Business Activity : Bakery

Loan Use : Purchase drum, sugar, baking soda, custard etc.

Salafai Suaesi, 52, is married with 12 children.  She has one year of experience in the bakery business and she sells to the villagers and public six days per week. Salafai has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the bakery is 400 ST (~160 USD).  SPBD loans are Salafai’s only access to capital because she was never able to qualify for a loan at a traditional bank. Salafai will use her loan to purchase the equipment and ingredients, including a stirring drum, sugar, baking soda, and custard, that will enable her to start and maintain her bakery business. She will use a portion of the proceeds from the bakery to purchase equipment for her family run plantation.

Share

RKC Microfinance – Siva Neemia

Thursday, July 9th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

SIVA (SAFOTU)Borrower Name : Siva Neemia
Village/Centre : Safotu

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Food
Business Activity : Food Production

Loan Use : Purchase frying pan, plastic bags, sugar, vegetable oil, bananas, etc.

Siva Neemia, 27, is married with three children and lives in the village of Safotu, Sevaii. She has over five years experience in the chip business and she sells her chips to retail outlets and the public five days per week. Siva has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the chip business is 200 ST (~80 USD).  SPBD loans are Siva’s only access to capital because she was never able to qualify for a loan at a traditional bank. Siva will use the loan to purchase the equipment and ingredients, including frying pans, plastic bags, sugar, vegetable oil, and bananas, that will enable her to grow and maintain the chip business. She believes part of the proceeds from the business can be used to improve a family run plantation. With improvements to the plantation, Siva’s family will be able to sell surplus crops for supplementary income  to the income provided by the chip business.

Share

RKC Microfinance – Tauese Pauga

Tuesday, July 7th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

TAUESE (SAFOTU)

Borrower Name : Tauese Pauga
Village/Centre : Safotu

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Agriculture
Business Activity : Farming
Loan Use : Purchase knapsack sprayer, knives, chemicals, ranging pole

Tauese Pauga, 70, is married with five children and lives in the village of Safotu, Sevaii. She is a farmer with one year of experience running a vegetable business that sells to villagers and the greater public three days per week. Tauese has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the vegetable business is 250 ST (~100 USD).  SPBD loans are Tauese’s only access to capital because she was never able to qualify for a loan at a traditional bank. Tauese will use the loan to purchase the equipment and supplies, including a knapsack sprayer, knives, chemicals, and a ranging pole, that will enable her to grow and maintain her vegetable plantation and business. Due to her age, Tauese will forgo hard labor on the plantation in favor of selling the taro, taamu, and banana harvest.

Share

RKC Microfinance – Tiara Taeia

Tuesday, July 7th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

TIARA (APIALUA)

Borrower Name : Tiara Taeia
Village/Centre : Salailua Apia Lua

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Transportation
Business Activity : Retail

Loan Use : Purchase akuelo, pafa, and a compressor

Tiara Taeia, 23, is married with no children and lives in the village of Salailua, Sevaii.  She fixes and cosmetically enhances cars as a mechanic and plans to sell her services to village people, friends and relatives, and the public six days per week. Tiara has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from her auto service business is 800 ST (~310 USD).  SPBD loans are Tiara’s only access to capital because she was never able to qualify for a loan at a traditional bank. Tiara will use her loan to purchase the equipment, including an akuelo, a pafa, and a compressor, that will enable her to grow and maintain her auto service business. She will be helped by her husband who has worked many years as a successful auto mechanic.

Share

RKC Microfinance – Tino Lavea

Tuesday, July 7th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

TINO (SAFOTU)

Borrower Name : Tino Lavea
Village/Centre : Safotu

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Food
Business Activity : Food Production

Loan Use : Purchase frying pan, spoons, flour, baking soda, forks, etc.

Tino Lavea, 65, is married with eight children and lives in the village of Safotu, Sevaii. She has two years of experience in the ‘pancake’ business and she sells to villagers and the village school four days per week. Tino has no previous loan(s) with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the pancake business is 200 ST (~80 USD).  SPBD loans are Tino’s only access to capital because she was never able to qualify for a loan at a traditional bank. Tino will use the loan to purchase the equipment and ingredients, including frying pans, spoons, forks, flour, and baking soda, that will enable her to grow and maintain her pancake business. She will use a portion of the proceeds from the business to improve her family plantation.

Share

Microfinance class at Robert Kennedy College

Saturday, March 28th, 2009

Our Investment Management residential week in Zürich, an elective within the University of Wales MBA at Robert Kennedy College, has just ended.

This time I have added a unit on microfinance as an investment and I have asked 4 groups to compare myc4/kiva to professional investments in microfinance like the credit suisse fund.

The results are very interesting…

(more…)

Share

microcredit online platforms: my experience

Saturday, March 21st, 2009

In the past few days I have tested two lending platforms. Here are my findings:

MyC4

I had initially the wrong impression about this platform. I did change my mind after reviewing this

The idea is to allow lenders to charge an interest rate (and perhaps make a profit) in the process. The only difficulty is that the loan is then transferred in local currency and an investor should get familiar with the inflation rate/currency depreciation before bidding. Of course you can bid for a lower interest rate but you will then have an higher chance to loose money. The whole process is not sugar coated in the sense that, an investor, has the chance to experience the real interest rate charged to the borrower + the default rate. All this happens behind Kiva too but in MyC4 you do see it directly. It makes of you a micro banker with some of the relevant decision making issues (how much to charge, selecting the clients, reviewing collaterals).

All in all it requires a bit more time than Kiva but it is a totally different concept. It focuses solely on Africa. My suggestion is to start small (20-50 Euro) and focus on MFIs with low delinquency rates.

Veecus
I am not sure about this provider. They work only with 1 MFI from Cameroon. Some of the loans appear to be out of proportion (800-1000 Euro? it does sound out of proportion) and their profit model doesn’t seem to be very transparent “Veecus gets revenue from membership fees paid by Veecus lenders on the very first loan, and a volume-based fee paid by microfinance institutions once they have received funds for microentrepreneurs’ projects.”

How high is the fee?

Share

Robert Kennedy College group on Kiva

Friday, March 20th, 2009

For our students there is an excellent opportunity to show your support to the Microfinance world: make a small loan of 25$ and change the life of an entrepreneur.

How to do it ?

I)  Join our group at http://www.kiva.org/team/robertkennedycollege
II) After you signup (and upload your photo if you like) select a project to loan (attention: as per today there are not many loans to be funded on Kiva but this should improve soon);
III) Checkout and pay (with paypal only – if your country is not allowed on paypal you cannot participate to the Kiva lending but you are free to join our group anyway);

I am currently thinking for a way to allow students without a credit card to participate anyway – perhaps I will manage to work directly with a small microfinance organisation and prepare a page of projects on this website. We shall see 🙂

David

Share

Not enough loans on Kiva?

Friday, March 20th, 2009

I was just browsing Kiva and only last night I have encountered a message confirming that every loan on the site has been funded. This is excellent – but perhaps it would be better to host a much larger amount of loans. In contrast, the portal babyloan seems to have many unfunded loans and a much smaller turnover. It is a French initiative and has a similar model to the one of Kiva. Loans can be re-used and there is a small donation of 1 Euro every 100 Euro loaned to finance their operations. The total loans handled by babyloan are slightly less than 150,000 Euro – very small if compared to the over 64 million of Kiva.The platform is kivasimilar but it looks like the English version is not yet as complete (e.g. the blog is solely in French). They could probably fetch more donors with a simple api to syndicate loans through partner sites – this should be really easy to implement and I feel that bloggers and twitters would play a great role in spreading the word.

I am wondering if the current online loan portals are really up to the growing appetite for social loans. Beside Kiva and Microplace (an Ebay subsidiary where you actually earn interest on the money you lend) all the others I have currently reviewed are not there yet. Their platform is often incomplete – one of the great ideas of kiva is offering borrowers updates, groups and much more.

It would be nice to create something useful for companies and educational institutions to “match” loans with their own funds – and/or to be more interesting to investors. Once again microfinance shouldn’t be confused with charity or a donation – at the very leads lenders should be able to receive their money back without interest and loan them to other micro entrepreneurs. All the other portals that consider loans donations (e.g. wokai)are really not as interesting.

Share