Posts Tagged ‘microfinance’

MYC4 profile Grace Odong

Monday, March 23rd, 2009
Uganda

Grace owns a mini supermarket. She would like to restock her shop with more commodities. This will enable her to meet the demands of her clients hence boosting her sales.
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MYC4 profile Hadijah Asuman

Sunday, March 22nd, 2009
Uganda

Hadijah owns and runs a tailoring business. She wants another loan so that she purchases more fabric and sewing machines. She will then have the capacity to serve more clients thus increasing her monthly turnover.
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MYC4 profile TROPICAL DIAGNOSTICS SUPPLIES

Sunday, March 22nd, 2009
Ghana

Tropical Diagnostic, trades in laboratory reagents, chemicals and equipments. The company sells to private and public laboratories, hospitals and clinics. Tropical Diagnostics is requesting for €2,892 to improve and expand the business operations.
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MYC4 profile Mubiru Annet

Sunday, March 22nd, 2009
Uganda

Mubiru Annet wants to acquire a second loan from MYC4. She deals in selling of veterinary medicine, food and others. She is seeking for a loan to increase her working capital and expand her business further to meet her customers needs.
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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?

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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.

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MYC4 profile Rehema Naluyimbazi

Sunday, March 15th, 2009
Uganda

Rehema deals in the sale of men’s clothes. She would like another loan so that she can buy more stock. This will enable her to meet the demands of her clients. and increase her sales.
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MYC4 profile Ann Wangui

Sunday, March 15th, 2009
Kenya

Ann Wangui runs a business of selling clothes in Nakuru town. She is requesting for funds to help her expand her business in order to increase her profit.
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MYC4 profile Priscilla Priska Kiiza.

Sunday, March 15th, 2009
Uganda

Priscilla deals in the sale of different kinds of fabric. She would like to purchase more fabric of better quality. She will then be able to serve more clients hence boosting her sales.
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MYC4 profile Mary Wangui Cyrus

Sunday, March 15th, 2009
Kenya

Mary Wangui Cyrus runs a grocery business. She is requesting for funds to help her expand her business in order to increase her profit margin.
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