MicroPlace is an eBay company that provides microfinancing to third world countries. Microfinance is the provision of small loans (microcredit) to poor people to help them engage in productive activities or grow very small businesses. Despite of earning interest return from the poor, it is in fact a win-win arrangement, where the lender get returns, and the borrower get fund to finance their businesses.
How Microplace Works?
Step 1: You purchase an investment on MicroPlace that provides the opportunity to earn a financial return.
Step 2: Your investment dollars are used to provide loans to the working poor.
Step 3: The working poor use their loans to build businesses. They repay their loans and pull themselves out of poverty!
After browsing the investment choice available, the interest return rate is ranging from 1.5% to 3.0% per year. Apparently, the return is not so attractive. But the mission and meaning behind your investment is to help reduce global poverty. Compare it to investing your money in a tobacco company. Money is used for noble purposes rather than producing addictive cigarette for burning.
Currently, the site is available for US citizen only. It requires US Social Security Number for registration.
I wonder why it can’t be open to foreign investor? eBay owns Paypal. There are many Paypal account holders around the globe. I got a few hundred sitting inside Paypal, doing nothing, and keep depreciating.