Are there NGO Micro loans in Colombia?

Papi de Alejo says on Feb 18, 2008, 20:16:

www.kiva.org

ColombiaBoard says on Feb 19, 2008, 10:36:

There's EL Banco de la Mujer, the do just that. It's sponsored by the World Bank. I don't know their website but they have offices in Bucaramanga and Cali

azunoman says on Feb 19, 2008, 10:57:

papi - We too are supporters of kiva.org, it also makes a great gift to those that have everything, we got my mom a gift certificate...

We looked on kiva for Colombia., I have a feeling that kiva does not have someone on the ground in Colombia.

The Ecuadorians sure love kiva, and Colombians should get on AS SOON AS POSSIBLE, kiva has really revolutionized the entire micro credit market.....woo hoo!

Ready, Fire, Aim

Papi de Alejo says on Feb 19, 2008, 19:42:

I just got notification that the ecuatoriana that I lent money to has fully repaid her loan. I looked to see if Colombia was represented but nothing. No borrowers and no information about Colombian NGO's. I believe that many people in Colombia could benefit if Kiva.org loans were available to them.

august says on Feb 19, 2008, 20:48:

I've come across quite a bit of micro-loan type of support in Medellin, I think mostly from the public sector. This might be of interest to you http://www.microempresasdeantioquia.org.co/

Alma del Norte says on Mar 3, 2008, 11:06:

Papi,

Thanks for starting this thread. Until you did, I had no idea of Kiva’s existence. I guess that to date, there has been an awful lot more publicity given to it in the US, than in other countries. After signing up as a Lender, I went ahead and made my first loan, to a woman from Tajikistan. However, my main motivation, after reading this thread was in empowering someone closer to home, in Colombia.

After enquiring with Kiva, Kiva Friends, and CHF International, (a likely regional Partner), it appears that there are legal problems associated with Kiva's involvement in micro financing in Colombia, which all parties are seeking to resolve.

I am now considering applying as a Kiva Fellow. So once again, thanks for bringing this to my attention!

La vida es una rutina

Papi de Alejo says on Mar 3, 2008, 20:41:

Glad that I can be of help. Thank you for looking further into it. I'm pleased to hear that they will try to resolve whatever problems there are. There are lots of people in the US who are willing to lend small amounts to people who can leverage a much greater benefit than the lender ever could.

manINred says on Mar 3, 2008, 21:04:

I have given out microloans in Colombia, funded by my very own student loan ;)

To be absolutely honest, there have been studies suggesting that microloans are effective, and the beneficiaries are indeed more likely to repay than many others with a 'good' credit history from the same countries.

I can attest that thus far, I am happy, as are the beneficiaries.

Alma del Norte says on Mar 3, 2008, 21:15:

How did you make the loans? 3rd party NGO?

La vida es una rutina

manINred says on Mar 3, 2008, 21:24:

Nope. You don't need to. Here's a snippet from wikipedia explaining what a microloan is:

"Microcredit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not considered bankable. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit. Microcredit is a part of microfinance, which is the provision of a wider range of financial services to the very poor."

So effectively I took someone who was not 'bankable' because of unfortunate circumstances (in their case lack of employment and bad credit whose fault was not theirs, rather their family's fault). and lent them money, all transaction costs part of the loan. I saw in them an opportunity to build something from nothing really, and as such, with the funds I loaned them, they were able to do so.

They have since done so, and I am very happy to have been able to help out in this case. Obviously I had to assess the situation very carefully so as to be confident in loaning out the money, because if the endeavour were to have failed, I wouldn't see the money again. It's not huge amounts of money by any means. My own personal meagre stash, which was ironically loaned to me from the government of Canada interest free. A loan upon a loan, so to speak... odd, but a microloan nonetheless.

Alma del Norte says on Mar 3, 2008, 21:52:

I'm interested in the mechanics. So, it was a person to person thing. Did you charge interest? Was it a friend or family friend?

La vida es una rutina

manINred says on Mar 3, 2008, 22:17:

It was a person to person thing. I do charge interest, but not very much, basically the opportunity cost of holding the money in high-savings bank account (which isn't very much) and when all is said and done I will be paid to travel across continents :) so my returns are actually much greater than any interest will ever yield.

It was someone I knew very well, and frankly I couldn't afford to trust anyone who I did not know very well with a microloan. NGOs can though, and do with quite some success so I've found out.

It is basically a fancy way of saying I loaned someone in need money, someone who took that money and made a heck of a lot out of it, and frankly I always knew they would do so, I just provided them the platform. That's all a microloan is, when you break it down to its core.

Alma del Norte says on Mar 4, 2008, 11:42:

Got you. Well thanks for relating your experience. I'm glad it worked out.

La vida es una rutina