The financial services that most of us enjoy today are not available to everyone.
Many people living in impoverished regions of our world don’t have safe places to deposit their money, honest lenders who will fairly lend, or the financial planning and business lessons needed to grow an income.
Microfinance is the practice of offering financial services such as small loans to people who have traditionally been incapable of accessing financial services. This principle has soared in popularity over the past several years as a tool to combat poverty and spark entrepreneurial innovation in the developing world.
Grameen Bank, a pioneer organization in microfinance and community development banking, along with its founder Muhammad Yunus, were awarded the Nobel Peace Prize in 2006. The recent publicity and popularity of this practice has sparked the growth of some fascinating ways for people to get directly involved with microfinance.
Organizations exist today that allow you to directly get involved with microfinance by helping to educate people about saving, providing them a secure and affordable way of depositing and withdrawing their money, and offering loan services to those with compelling business plans for their communities.
Below you will discover three ways you can get involved with microfinance.
Saving
It’s important that people living in developing regions of the world have safe places to deposit their money and ample educational services that help them understand how savings and interest rates work.
The World Council of Credit Unions (WOCCU) has created a campaign called Matchsavings.org which serves to educate people living in poverty about the benefits of saving and to give them an incentive to get started.
Lending
One of the most engaging ways to get involved with microfinance is to use the world’s first person-to-person micro-lending website and connect with entrepreneurs from around the world using kiva.org. Kiva’s mission is to connect people through lending in an attempt to alleviate poverty.
Kiva has field partners from around the world who help match you with aspiring entrepreneurs. You can get a detailed explanation of how Kiva works here.
Also, you will find a list of those who are seeking loans here.
Donating
Donating to leading international non-profit microfinance organizations is one of the easiest ways to get involved in microfinance.
ACCION International is a non-profit leader in giving financial tools and resources to those living in poverty. They provide micro-loans, financial training, and financial services to to men and women who start their own business. They offer several easy ways for you to donate and explore job and volunteer opportunities.
Grameen Foundation is a non-profit organization that helps the world’s poor, especially women, escape poverty through the use of micro-loans and technology. They offer a comprehensive gift catalog that allows you to see and understand exactly how your donations can help women and children who are trapped in poverty. You can find employment opportunities here and explore their blog here.
Photo Credit: http://www.flickr.com/photos/mckaysavage / CC BY 2.0
