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December 30, 2007 – international microfinancing that yields a return

Filed under: Cool Ecomm sites — estreet @ 8:35 pm
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Pierre Omidyar – founder of eBay – stated at the 2006 eBay Developers Conference that he was focused on international microfinance. It took me a while to understand what he was talking about.

Microfinance is peer to peer lending. You lend $100 to a farmer in Eastern Europe to buy seed and fertilizer or a female store owner in South East Asia to buy goods for a marketplace store. Within a year, they pay you back. The qualified borrowers are very experienced business owners who need money to grow their business.

This photo is of a farmer in Bolivia who borrowed $600 to buy a milk cow. She sells the milk and has repaid $200 of her $600 loan.

eBay acquired in October. They pay a return on your investment. is a non-profit and does not yield interest.

Here’s a great summary of the two companies: Kiva vs MicroPlace-whats the difference

I think I’ll give a try in 2008.

There is a company called that offers peer to peer lending for people in the US. I took a quick peek and saw borrowers wanting to consolidate their consumer debt. No way. These are high risk loans to people who don’t know how to manage money. Yuck!


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