Think Kiva (which I have written about before) for student loans. I have to admit that I am a sucker for social entrepreneurs with innovative business models. The Seattle Times today has an article describing a non-profit called Vittana. Here is what they do:
"Vittana offers loans to send a student to school for a year in Peru,
Nicaragua or Paraguay for less than $1,000. It works through local
microfinance institutions (MFIs) such as
Fundacion Paraguaya, to administer the loans. The money
cycles
from the individual lender to Vittana to the MFI to the student and
back. The MFI charges borrowers interest on the loan of about 10 to 15
percent APR to cover its operating costs."
As for the terms of the loans:
"People attending the presentation wanted to know how long it would take
to be repaid (in three years lenders get back the loan amount but
without interest), and how Vittana can stay in business since it's not
taking a cut of the loan. Vittana plans to support its operations
through donations, which it will request and handle separately from the
loans, similar to Kiva's model.
Seattle seems a hot bed for non-profits focused on improving educational opportunity in developing countries. Another Seattle-based company, Givology (featured in this post), provides grants to promote education in developing countries. I'll check back in a few months to see how these companies are developing.
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