Microfinance Lending Platforms
Published by Drew Meyers on 03 Mar 2009 at 08:29 pm
Dvelo – Dvelo.org allows partnered microfinance institutions (MFIs) to request loans for the communities they work with through our innovative website. These organizations typically get their funds from either donations, grants, or loans from local commercial or institutional lenders that charge anywhere from 15-20% interest for capital. Dvelo.org serves to reduce this cost of capital for these MFIs by giving them a platform to request loans directly from social lenders like yourself.
Kiva – 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 people you see on Kiva are real individuals in need of funding – not marketing material. When you browse entrepreneurs’ profiles on the site, choose someone to lend to, and then make a loan, you are helping a real person make great strides towards economic independence and improve life for themselves, their family, and their community. Throughout the course of the loan, you can receive email journal updates and track repayments. Then, when you get your loan money back, you can relend to someone else in need.
LendForPeace - LendforPeace.org is a not-for-profit Internet platform that allows individuals like you to make small loans to specific micro-entrepreneurs in the Palestinian Territories. Founded by two Jews and two Palestinians, LendforPeace.org (”LFP”) was created to enable people of all faiths and backgrounds to make a tangible difference in the Israeli-Palestinian conflict.
Microplace – MicroPlace’s mission is to help alleviate global poverty by enabling everyday people to make investments in the world’s working poor. MicroPlace is currently the only website that provides everyday investors with the ability to make investments in the microfinance industry. Through MicroPlace, an investor can make investments that earn financial returns while having a positive social impact.
MyC4 – We see a world without poverty, where everyone has the same access to knowledge, markets and capital. As an infrastructure, MyC4 link African business with capital aiming to create sustainable prosperity in Africa via the Internet. The focus will be on Sub-Saharan Africa as this is the part of the world which United Nations predicts will not reach the Millennium Development Goals by year 2015.
Imagine a world without poverty!
OptINnow – a new initiative from Opportunity International that pledges to end global poverty faster. How? You give a gift that funds a loan. That loan builds a business. And that business helps hard working families out of poverty. When the loan is repaid, it’s recycled, and loaned again and again. It’s giving that keeps going.
United Prosperity - United Prosperity is the world’s first person to person loan guaranteeing website. Small entrepreneurs all over the world need funds to start and grow their businesses. Banks however don’t lend to them without collateral. Small entrepreneurs cannot give collateral since they are often very poor. Your guarantee allows the entrepreneurs to access funds from local banks either directly or through United Prosperity’s partners.
Veecus – Veecus is an interactive platform allowing all members of the network to browse projects of microentrepreneurs and personal pages of users and lenders. Veecus also provides you with your personal space online and your own blog.
Vittana - Believe it or not, in most countries, college loans just don’t exist. Imagine: No matter how smart you were, how hard you worked or how good your grades were, if you didn’t have a bunch of money up front, you just couldn’t go to college. Your ability to raise a family, move up in the world and achieve your potential are forever limited, not because you didn’t have that potential but because you never got a chance. Together, we’re changing that.
Wokai - All contributions made through Wokai are used to extend small loans that the borrowers will eventually repay. Once a loan is repaid to the Field Partner, it is then available to be lent to another individual that the original contributor has selected from Wokai.org. In this way, every single contribution will be used to create new opportunities year after year. Also, Wokai focuses solely on China.
If there are any other microfinance platforms or resources that you think should be on here, feel free to email: “jerryostradicky (AT) g m a i l (DOT) c o m”

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David Costa on 20 Mar 2009 at 5:56 pm #
I would like to provide some feedback based on my personal experience:
MyC4 I used the platform and while it is still early to say the forum is full of complaints re: delinquency rate. One of their major providers from Kenya, Ebony, has been suspended by Kiva. The previous investments in Cote d’Ivoire (according to the forum) are lost forever.
There is a huge delay between the payment date (when your credit card is debited) and the loan start date. The site has a *very* complex calculation system to determine the interest rate. It is archaic (at best). You are asked to evaluate the inflation rate in african countries (loan is disbursed in local currencies) and to pay local withholding taxes and an unfair (again, this according to other users on the forum) exchange fee. All in all the site is not clear as it confuses users between doing good for africa and gaining a return. Kiva is miles ahead in terms of transparency.
In MyC4 several users claim that they actually lost money (even by charging interest) due to the currency fluctuation and rampant delinquency rate. In terms of usability the site leaves a lot to be desired too – unless you use firefox or IE you will have an annoying notice to change browser (why that? it works perfectly with Safari and other browsers too).
The company makes money on your transaction fee (credit card) or at least it charges fees that Kiva doesn’t change. All in all the system is not stable enough and, beside you really want to make a donation to them (and not necessarily to the beneficiary) or willing to take an unnecessary risk you should stay away. Microplace is only for americans but again it is way better. How would someone know the currency issues in places like Congo and Uganda and why the burden should be on the user?
Veecus
I am not sure about this provider. They work only with 1 MFI from Congo. The loans appear to be out of proportion (800-1000 Euro?) and their profit model is not transparent at all “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?
Not promising at all.
I wouldn’t recommend either of these platforms.
David Costa on 21 Mar 2009 at 7:01 pm #
I was actually too quick on judging MYC4 – my bad. I have now amended my review
in my blog.
The issues are indeed very different than the ones a user will experience in Kiva but that’s perhaps part of the difference: the lender is in control and has to make some tough decision to avoid losses.
Jerry Ostradicky on 22 Mar 2009 at 9:12 am #
Good stuff David, thanks for the feedback.
Jerry
jami on 22 Jun 2009 at 6:38 am #
Your list should also include Bid Network which is in Holland, I think.
Then there is also Rangde in India, and Zopa in the UK and the US and Opportunity International just launched an online lending platform ….
Also, I noted today that Kiva is now offering microinvestment opps within the USA.
Go KIVA!
Best,
Jami
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