MicroPlace.com – Small Loans Big Changes

  • October 25, 2007

MicroPlace.comIn developing nations around the world, people with innovative ideas and keen skills are living in poverty with no foreseeable way out. In most of these situations, the lack of money and resources restricts any chance of growing a business – or even dreaming about it.

But now, microfinancing has proved to be a great solution, and a feasible one too. Microfinance works by providing financial services such as loans to people living in poverty. With these small loans (often under US $100) people can start businesses or shops and begin to earn money and eventually pay back the loan. MicroPlace.com invites people in developed countries to invest in their company that in turns takes the money to local lending organizations. These organizations then give it out in the form of microloans for entrepreneurs in developing nations. The loans are usually between $30 and $200 and the entrepreneurs are responsible for paying interest on their loan (18 – 60%) within 3-6 months. MicroPlace.com and eBay have paired up for this venture and have big plans on the horizon to encourage stronger ties between capitalists and those who suffer under its thumb.

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