MYC4’s microfinance lending touches 9.3m euros
- Friday, July 31, 2009, 13:24
- Investments, Latest News
- 5 comments
A Microfinance Borrower
Microfinance Focus, July 31, 2009: MYC4, a peer-to-peer lending facility with 15,643 registered investors from 94 countries, has reported investments in online microfinance amounting to 9.3 million euros in 4,865 businesses in seven African countries so far. And the trend is catching up with other players in microfinance sphere.
Micro Place, an e-Bay company, has provided 40,005 loans enabled by investments made online since its inception in Sept. 2007. KIVA, another major US-based not-for-profit company which has pioneered the idea of online lending, is distributing one loan in every 14 seconds giving more than $1 million a week.
Kiva has explored the potential of internet to connect retail investors to microfinance borrowers and entrepreneurs across the world. This idea inspired many such initiatives across the globe — MYC4 in Africa, Micro-Place an E-bay venture, Rang De and Dhanna-X in India have all made the idea a successful turn.
Most of these online market places provide web platform to connect investors and entrepreneurs. Usually they put the profiles of micro–entrepreneurs, details of their current business activity and provide a choice to investors to select the entrepreneur. Investors can invest as low as $ 20.
These platforms also provide a choice to be just a social investor as KIVA does. It does not yield any returns to investors. But MICRO PLACE and MYC4 offer some return to the investors who use their platform. According to MYC4, the average interest rate for investors is 13.1% per year. These institutions select local MFIs and NGOs as their partners to select entrepreneurs, to distribute loans, collect repayment, to collect information and sometimes training or any other assistance.
Related Posts:
- Kiva microfinance loans touch $100 Million
- Craig Newmark`s microfinance gift to boost ACCION USA’s Kiva lending
- Omidyar Network gives $5m grant to Kiva to expand microfinance in underserved regions
- Rang De: Now anyone can support microfinance
- RESEARCH: Rang De and online lending in India
- Internet based microfinance platform ‘40billion.com’ raised $25 Million for SMEs
- MicroGraam, ‘e-bay’ of microfinance, launches online marketplace
- BlueOrchard’s PE Fund assets touch $130m
© 2009, Microfinance News. All rights reserved. 2008-09
5 Comments on “MYC4’s microfinance lending touches 9.3m euros”
Write a Comment
Gravatars are small images that can show your personality. You can get your gravatar for free today!
Thanks Vikash
MYC4 is an interesting model aimed at financing SME’s. Is Investors beyond Borders going to clone this? http://www.investorswithoutborders.net/
What’s the difference? What can IBB add as their USP?
By Arvind Ashta Professor at Burgundy School of Business, Holder of Microfinance Chair
MYC4 is not registered to sell microfinance-based securities in North America. As a result, North American investors cannot get back any money they invest or any interest on any such “investment”.
In regards to North American investors, therefore, MYC4 appears to be another investing scam – not a model I would recommend people try to replicate.
By Gordon Crann Owner, Crann Law Firm
Hi Gordon
The use of the word scam connotes a fraud and a whole intentional state behind this, and your comment appears to be slander/libel because of this one word. I think you should delete your comment and replace it with a suitable one. Even if there may be no legal remedies for North Americans, it doesn’t mean that MyC4 would not pay back on its own. Of course, if you have some basis for accusing MyC4, I can understand that.
By Arvind Ashta Professor at Burgundy School of Business, Holder of Microfinance Chair
Hi Gordon,
I am working for MYC4, and to some extent you are right: Since we do not have an operation department in North America we are not allowed to disburse money to North American Investors. So, you can invest in the projects, but you cannot withdraw the money, since we are not registered in the U.S./Canada.
We know, that this is a very unsatisfying situation for possible North American investors, but since we are currently not planning to enter the U.S. market, we cannot make any other provisions in regards to this issue. The possible usage of MYC4 which is therefore for North American citizens limited to investing.
When signing up on MYC4, we have a special note for North American Investors to make sure that they are aware of this issue before joining MYC4.
I will avoid commenting on your accusation of scam and concur with Arvind’s comment.
You are more than welcome to contact us directly, if you need further information administration@myc4.com.
best regards,
Mille
By Mille Klink Kommunikationsansvarlig at MYC4
How can online lending and perhaps, ICT in general, benefit MFI clients ? I belive that current ICT applications in MF do not engage the clients, and this is for a variety of reasons. However, there are many technologies and solutions which show promise in being able to engage with this community. The problem of availability is being addressed, inter alia, by providing shared computing facilities, or kiosks. The problem of accessibility can be mitigated by deploying interactive voice based solutions in local languages and other innovations which are being actively pursued.I belive ICT can be a game changer in the MF sector.
Krishna Nyapati
Managing Director at Microsense Software Pvt Ltd