Working in very much the same way as Kiva, a new micro-finance initiative called Babyloan (pronounced in French more like Babylon than baby loan) has been set up, which links European donors with micro entrepreneurs in developing countries. European internet users can look at the profiles of micro entrepreneurs, choose who they want to support and by how much, then lend money, in Euros, directly to them. The loan is paid back and the original sum can be either taken out of the scheme or re-lent.
The beneficiaries are selected by MFIs (Micro Finance Institutions) who are partners of Babyloan. Legally, the lenders are lending to the MFI who will repay the loan in case of default.
Babyloan are hoping to develop the site into a social community, so that lenders can meet others and share experiences, even electing representatives to the board of directors.
The site is still showing a beta version, but, although it is primarily a French site, it does have an English version. Of sorts. Someone needs to tell them that "Vêtements pour hommes" doesn't translate as "Men's dresses".
That sounds like a cool idea. I hoe they get the site translated soon. Some of the English version was readable, but I only know swear words in French, I'm afraid. :D
ReplyDeleteYes, that sounds like a very good idea and also sounds like it doesn't have much of a management top slice from the money loaned.
ReplyDeleteIt sounds really promising, so I do hope they go on developing it.
ReplyDeleteI will definitely be keeping my eye on this, thanks for keeping us informed and all these great initiatives.
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