Microcredit (lending money to Peruvians)

I think I first heard about microcredit way back in 1992, when the Independent on Sunday featured an unknown Bangladeshi called Muhammad Yunus and his work giving small loans to groups of women who were too poor to access the kinds of livelihood opportunities and risk management tools that financial services provide to those who have some capital in the first place (women are agreed to be less likely to default on loans than men). Since then, he and the bank he founded have won the Nobel Peace Prize (more deserving than Obama) and microfinance organisations have proliferated worldwide.

In a British pub last week I met a couple of women who work for Kiva, an organisation that connects people through the internet for the sake of alleviating poverty. The idea is that individuals like (you and) me can use the website to check out the profiles of an entrepreneur or group of them and choose who to lend money to so that they can achieve their stated goals. Your money is paid back over 6-12 months and you get updates on the entrepreneur(s) you loaned money to. Oh, and with the Cynthia and Sheethal, I won the pub quiz (again – I am now 4 for 4).

I loaned money to a group called Emprendedores De Sicuani. They are in a town an hour or so away from where we are staying and the group is represented by Mrs. Miguela Camacuari and consists of 11 members, who are into things as diverse as food sales, cosmetic sales, natural products, clothing sales, and tailor services. They are requesting financing for the acquisition of merchandise, and goods that will allow them to generate greater incomes.

I lent them twenty-five dollars. They still need some loans to complete the amount they need. You could go to kiva.org and lend to them or to another group or individual. Kiva works all around the world, not just in South America, so you can pick a country you have an affinity with, if you choose. Alternatively, if you are a bit sceptical, check back with me or my blog in the future for updates about my repayments.