More free money for charities
If you want to help people around the world, there’s this really awesome site called Kiva. Go there and you can loan money to poor people around the world in $25 increments. The total loan varies from a couple hundred dollars to a couple thousand for the larger group loans, but an individual only needs to loan $25. The whole process is called “microloans”.
Microloans are for people who don’t qualify for a bank loan, because their loan amount is too small so they’re not a “good credit risk” for the bank. It doesn’t matter if the person is likely to pay it back, they’re not worth the bank’s time. Just like here in the US, where they’d probably look at you funny if you came in asking for a $500 loan out of the blue.
The other option for these people is from a money lender. We’d call them loan sharks. The average interest rate that these people charge is around 80%. In one area, the interest rate is about 120% while the Kiva lender only charges 20%.
Anyway, you go to Kiva, give $25, and maybe you’ll get the money back eventually with some interest. Like any loan, however, there are unforeseen risks. Robbery, sickness, drought, etc. can all cause a default. But if you give money to hurricane, earthquake or tsunami relief, you don’t expect the money back right?
But what if you don’t have $25 to wager in such a fashion? Fortunately, there are a couple options right now.
Small Things Challenge – For every click, they give a nickel to charity. Not much, but you can click every day and that nickel adds up over time.
Think MTV – This one is really great. Sign up for Think MTV, follow the instructions and receive a $25 gift certificate for Kiva in a few days. Free. Doesn’t cost you anything. Must be a resident of the US. One gift certificate per person.
Thankfully, the gift certificates don’t expire until April because the loans at Kiva are getting funded at a phenomenal rate right now. It’s amazing what a few people can do.
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