# Tell me about microlending!

**URL:** <https://boards.straightdope.com/t/tell-me-about-microlending/444987>\
**Category:** Factual Questions\
**Created:** [April 12, 2008, 2:47am UTC](https://boards.straightdope.com/t/tell-me-about-microlending/444987 "2008-04-12T02:47:34Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![GameHat](https://avatars.discourse-cdn.com/v4/letter/g/ed655f/32.png) [@GameHat](https://boards.straightdope.com/u/GameHat)\
**Post date:** [April 12, 2008, 2:47am UTC](https://boards.straightdope.com/t/tell-me-about-microlending/444987/1 "2008-04-12T02:47:34Z")

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It sounds like a great idea - lend entrepreneurs in a developing country a small amount of cash. They use this cash to further their own self-employment, paying it back with no interest after a reasonably short time.

I’ve been looking for some decent options to give a small amount to a good cause. This idea appeals to me.

Can anyone tell me more? Have experience lending to some of the visible microfinance organizations? Know whether it really is beneficial to the people who receive the loans?

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [April 12, 2008, 4:04am UTC](https://boards.straightdope.com/t/tell-me-about-microlending/444987/2 "2008-04-12T04:04:44Z")

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I have some doubts. I volunteered to help one of the more prominent,mentioning my fraud and anti-money-laundering skills, and they never got back to me. :dubious: In other words, they turned down an expert who offered his help for free, \*maybe \*because they didn’t want an expert looking at things. :eek: 😕

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**Author:** ![T\_SQUARE](https://avatars.discourse-cdn.com/v4/letter/t/9de053/32.png) [@T\_SQUARE](https://boards.straightdope.com/u/T_SQUARE)\
**Post date:** [April 12, 2008, 11:39am UTC](https://boards.straightdope.com/t/tell-me-about-microlending/444987/3 "2008-04-12T11:39:01Z")

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In theory, I think it’s a good idea. However, [kiva.org](http://kiva.org) doesn’t offer any return to people who lend money. Not that I think I should get rich off the idea, but to me it is supposed to be different from charity. They do charge interest to the person who gets the loan, however. If the lending outfit has no cost of money, they basically have default risk and overhead, so I’m not sure where the baksheesh goes.

I’d like to see the lender get a small return, say 3%. That way, lenders could feel like the investment was part of their portfolio, as opposed to a handout.