What is a Field Partner?
Micro Financial Savings work is enabled through an extensive network of microfinance organizations around the world known as Field Partners. The Field Partners are best positioned in the developing world to screen borrowers, distribute and collect loan repayments. They also meet with the entrepreneurs on a regular basis to work with them on the successes and overcoming challenges of the business. The Field Partner provides the Micro Financial Savings team with the latest "on the ground" intelligence about how to best utilize and distribute its funds to the poor.
What is Microfinance?
Microfinance is a practice of lending money to people in the world earning about $ 1 per day who do not have access to typical banking services. Through small dollar micro loans typically averaging between $25 - $ 100 the poorest people in the world are given a chance to escape absolute poverty.
Who benefits from small dollar microloans?
Typical recipients of microloans are poor and low-income people that do not have access to other formal financial institutions. Most of the people are often self-employed and run small businessess including street vending, retail stores, crafts and a wide variety of other services.
Will my donation make a difference?
In the developing world where people make less than $2 per day, your contribution of any amount will make a significant difference. Consider that for every $100 donated or loaned, a job is created which then supports nine other jobs.
Are women awarded loans?
Women have proven to pay back their loans at the highest rate of all categories often times when organized as part of a group loan, loans are paid back at rates exceeding 99%. In the developing world, experience confirms that 8-10 women bonded together in the form of a group loan have the highest payback rate of any demographic group and subsequently account for more than 90% of the loans awarded.
How are loans awarded by field partners?
The loan candidates are screened by our Field Partners who work with groups of people in the local towns and villages to both inform the entrepreneurs about the Microfinance program and to screen candidates who are best positioned to succeed as entrepreneurs. A variety of screening tools are utilized by the Field Partner including the ability to pay back the loan, previous success in running a business or the presence of a solid business plan for new entrepreneurs.
How big is the average loan?
Individual loans start at $25 and typically approach $300. The loan is made to a group of 5 to 10 entrepreneurs each of whom co-signs the loan and agrees to the repayment schedule. With an average wage of about $2/day in the developing world, even a $25 loan is considered a very sizeable amount of money to a new or small business. The majority of loans are paid back over a six month period.
How do I participate in a Micro Financial Savings Team Loan
After registering at the Kiva.org web site as a lender, simply select "Micro Financial Savings Save the World Fund" and your loan will be administered under the "Micro Financial Savings" Team Loan.
What interest rate will I earn on my loan?
Lenders passing through the Micro Financial Savings web site to the Kiva.org site will not earn any interest. The interest-free loans are often paid back to the lenders at a rate in excess of 99%. At the end of the loan term, the Lender of the Kiva loan has the option to either withdraw the remaining proceeds of the loan in its entirety or to roll it over as a new loan with a whole new set of loan terms and conditions. Administration of the loan will be handled by our partner, Kiva.
Will my entire donation go to the poor?
Your donation will be allocated to one of our community outreach Field Partners based on the greatest need. Aside from nominal costs of overhead to administer the microloans and financial services, the aspiring entrepreneur will benefit from your generosity almost entirely.
What is the cost of poverty?
The Case for Action
In the Next 10 minutes 50 people will die from hunger, etc.
Half the people in the world live on less than $2 per day
One quarter of humanity, about 1.6 billion people, live without electricity
Over 9 million people, of which 5 million are children, die worldwide each year because of hunger and malnutrition.
Over 11 million children die each year from preventable causes like malaria, diarrhea and pneumonia
Around 27-28% of all children in developing countries are underweight or stunted.
For the 1.9 billion children from the developing world
- 640 million are without adequate shelter
- 400 million do not have access to safe water
- 270 million do not have access to health care
- 270 million do not have access to health care
- 2.2 million children die each year because they are not immunized.