“Micro-Financing” – teaching myself, teaching my son and helping others
March 10/12, New Delhi, India. We have ended our volunteer-teaching here. After experiencing the fulfillment of teaching English to children in China and Thailand, I feel that there is great value in volunteering. But what could I do? I realized that I have skills that I can share. I can teach women in underdeveloped countries basic entrepreneurial concepts such as marketing, branding, computer skills, bookkeeping skills, etc.
I shared this idea to Monjie, a good friend of mine. In response, he sent me the link to kiva.org, a site about micro-financing. Such a cool concept! Micro-financing is a very small loan given to people in underdeveloped countries to help them get into their own business. So, $25 from 100 lenders will equate to a $2,500 loan. The end result can potentially help change the life of the whole family of the borrower. Thanks to Monjie. I totally resonate with what I read because it aligns with my value on supporting those that want to help themselves. I realized that for as little as $25.00, I could empower an individual anywhere in the world – a goat herder in Sudan, a farmer in the Dominican Republic, or a tailor in Iraq; the “who” does not really matter, it’s the “what” that matters – what their plans are with the money they would be earning as a result of getting the loans.
I believe in teaching others how to fish instead of fishing for them. I explored on the opportunity to teach women how to start their own business. Unfortunately, Kiva’s requirement for a commitment like this was 4 months. Therefore I can’t do it now yet because I am still in the middle of my travel. However, I signed up to be a lender for them instead.
I feel very privileged to know that I can afford to lend yet be comfortable with the knowledge that I may never see the money again. I feel good knowing that my loan could make a difference in another human being’s future. I trust in the thought that they are borrowing with hope and determination to be able to repay.
April 7/12 – Because I really believe in the concept of micro-financing, I introduced it to Deon and was able to convince him to ask for Kiva gift certificate as his BD gift instead of toys and use this as the first loans he will give out.
I was able to make him realize that the result of his loan could help feed a whole family. He likes the idea and felt really good to be able to make a difference after he has seen how the people lived in some of the less developed countries we had visited. In the meantime, I am training him to be the underwriter for loans for me. He has chosen quite a few loans for me already based on the guideline I gave him which is priority goes to single moms. Since both my mother and I are self-made, therefore, I fully want to support other single moms too. Then, he needs to look at what the borrowers need the money for and what they plan to do if they become successful (like, will they be doing a good deed such as helping others with the extra money they earn as a result of this loan?). Also, I trained him on risk management. He needs to consider the borrower’s ability to repay since this is a loan, meaning, it is a business decision, and not donation. I also explained to him what currency rate is and to consider currency rate risk when he chooses his recipients. I guess the benefit of having a logical son is that it is easy to explain all number related topics.
Feb. 4/14 – From giving up his birthday gifts in 2012 and 2013, Deon has been able to lend out a total of 171 loans as of this writing. Surprisingly, his delinquency rate is zero as of now. This means that he has been getting 100% of his loans back so far. Thus, he is able to re-lend the money again which is how he has been able to give out these many loans over the last 2 years.
Since 2013, I have decided to give KIVA gift certificates to my nieces and nephews then spend time to set up KIVA accounts for them and explain to them what micro-financing is all about so they can start choosing their first 4 loans. I see a much higher value in that than another piece of toy on top of all they have already.