Discussion Topics« Return to Microfinance
Microfinance Organisations and Banks
Contributed by Thys Van de Veer:
Many of these banks have micro-finance activities and contacts:
# Alternative Bank
# Banca Etica
# GLS Bank
# Merkur Bank
# New Resource Bank
# Triodos Bank
Operating in the below and other countries:
- The Netherlands
Replies to this Topic
- Sat, Jun 5, 2010 3:15 AM
microfinancing is just the repackaging and marketing of loans to the poor and destitute. the only people that will really benefit are the despot bankers.
loans and credit are a system based on PROFIT for the bankers. if you think that this isn't their ultimate goal, you are kidding yourself. for years, they've been looking for more and better ways of cheating the vulnerable out of what little money they have. and wow, did they find one.
social activism and charity are NOT compatible with PROFIT. did Gandhi or Mother Teresa ever try to profit from their service to humanity?
what is the real answer?
give, and expect nothing in return.
- Tue, Jun 8, 2010 3:15 PM
Radhika, are you seriously not going to even acknowledge my criticisms?
- Tue, Jun 8, 2010 4:27 PM
What its needed is a non profit public, community owned bank,
that reinvests the profits in more loans,
like the Mondragon Cooperative has,
Is any of these banks community owned Radz?
Henry you need to read more about the Grameen foundation, as well as the Kiva iniative and others. There are a number of micro-financing 'banks' which yes have mass flaws and are working with a profit orientation, lack of understanding and structure to function under what its main purposes should be. However there are a number of organisations that do not use micro-loans in this way. They use the micro-financing model alongside community development programs and iniatives using any of the interest if any to plough back into the community and help the entire area and build these people's credit capabilities and ability to progress. Whether we like it or not, credit is a big part of helping anyone grow capital, product or create a business. Working solely out of your back pocket cash amount is no longer feasible in many cases in order to grow a sustainable, substancial business and progress from one step to the next. I will post a complete description, and life examples of what I am talking about in the next few weeks. Just to note; the above post was not brought by me. Thys provided the information. The above post was merely posted as information reference of some banks involved in microfinancing not a evaluation of their services. The evaluation of the above in detail have not yet been done.
- Fri, Jun 11, 2010 5:24 PM
you need to read about charity. as in, giving freely. a gift not freely given is no gift at all.
the system of 'credit' is not sustainable or humanitarian. 'owing debt' becomes 'ownership'.
it is this system of 'credit' that has deepened the gulf between the super-rich and the rest of us. the money disparity now is worse than in feudalism (billionaires vs. USD$1000 yearly salary). if you don't think you are a modern serf, you are fooling yourself.
To have 'Credit' does not mean you have to owe debt. I hold a credit card and debit cards as well as normal cash cards and savings. Though owning a credit card I am not in debt. I use my credit card to obtain a credit rating, giving me the possibility to use it in the future if need be or merely for collatoral, but never have I been in debt as I simply only spend on the credit card what I have in hand. Nevertheless me using this method of using my credit card as the form of payment rather than cash in hand, and then clearing that account with my cash has meant I have grown my 'credit rating'. What this means is when I open a business and want people to invest, I have a better chance, whether it is the correct system or not, i agree it is not, however it is a system that is global and is not going to be eradicated in a day. In essence this is what I am speaking about. In today's world though I understand and respect your point on 'credit' not being sustainable it is a term and situation that is not going to disappear overnight. It needs to become more regulated firstly then put in order and potentially eradicated being replaced by more charity and people helping people. However this beautiful outlook is not going to help the poor of today who out of all people have the least power to change the system currently; unless all people in poverty across the world, the lower and middle classes (Only using these terms in reference to income level) join together in a movement to eradicate the system. The following dilemma is also, everyone's question of how to trust another and with big investments whether if given freely, they are not going to regret it one day when they are broke and who know's the people you helped don't care,others dont care and you have nothing? This is why charity has been limited for decades; human nature.
Henry, I am a big believer in charity having given more than ever taken in my life without expectations of return. I know the term, I know the action, I know its entirities. Charity should be given freely, however smart charity is also a term, meaning to maximise charity- funds; their usage, materials;their way along, people and resources to make sustainable goodness rather than limited joy or improvement. I am not talking about microfinancing here, solely the term/topic charity in this statement.
- Fri, Jun 11, 2010 6:58 PM
must be nice to have a credit card only for the purposes of building credit. try telling that story to people in Africa or North Korea.
yes, of course it will not be eradicated in a day. but it will NEVER be eradicated if people continue to support Bretton Woods institutions.
it has been shown that these supposed 'good' microlenders are charging 22% APR and much higher for these loans (via MicroBanking Bulletin, 704 banks). that is a HORRIBLE rate that will surely end up with the people selling their new businesses to the bank to pay their debts.
which of course, was the plan in the first place.
- Fri, Jun 11, 2010 7:06 PM
lets do some math. most business do not pay their costs and become profitable for 2-3 years.
microloan of USD$2000, at 25%
year 1 - $2500
year 2 - $3125
year 3 - $3906.25
yup, already doubled after only 3 years.
the bankers have really hit the mark with microfinancing, as they are now getting donation money from well-meaning but gullible people in addition to massive profits.
- Fri, Jun 11, 2010 7:42 PM
the issue is also that these banks are part of financial groups that create money
in countries that use fractional reserve system and lend it to other banks in their
financial cartel, then the retail bank lends it to the person,
that money is created with the promise of the retail bank to pay back+interest,
the retail micro-lending bank can go down, but the big bank that lends to it will
likely get paid and even if it doesnt, remember, they created the money out of thin air,
maybe not the rupee, just to mention a currency, because I dont think India has fractional
reserve lending like the US and others, but the thing e is that the rupees are bought with dollars
which are created this way. This is not like the bank has 100 dollars in deposits or real cash
and then lends it, that is another issue of a different shade. Now this system is plain