Study Guide

Today in Human Geo, Mr. Schick showed us the study guide. Below are all the notes I took in class. Microfinance is a form of financial services for entrepreneurs and small businesses lacking access to banking and related services. Microloans are a small loan given to individuals who might not have access to typical banking services, usually to start or expand small, self-sufficient business. One of the best-known lenders is kiva.org. As of November 26, 2013 Kiva has distributed $498,939,550 in loans from 1,015,823 lenders to 1,177,248 borrowers. A total of 637,003 loans have been funded through KIVA. The average loan size is $410.89. The average Kiva user has made 10.06 loans. Kiva's current repayment rates for all its partners is 99.01%. Who receives microloans? Micro entrepreneurs who are trying to start a small business. Villagers needing to fund a clinic, hospital, or other health care facility (malaria treatment, drugs, hypos, refrigerators, sanitation). Teachers trying to run a school (buying anything from books and pencils to desks and chairs). Students wanting to further their education (college tuition). What are the problems with microloans? There are high interest rates sometime as high as 23%. The cost of providing banking services to those living in poverty is high. Being the company that provides tiny loans can be expensive. What's harder and more time-consuming to process: one $500,000 loan, or five hundred $1000 loans? That's it. Mr. Schick isn't finished.