Australian Development Gateway

The Australian Development Gateway (ADG) strives to support members of the development community in their efforts to reduce poverty and enhance sustainable development in the Asia Pacific region. The site has been created with participation from members of government, private, academia and non-government organisations. User feedback mechanisms have been incorporated to guide future directions of the site. The site is optimised for low bandwidth access to enable the widest participation throughout the Asia Pacific region.

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Lending Mechanisms

What is online microlending?

What is online microlending? Online lending is a new model of microfinance funding in which retail loans or investments are made over the Internet by average people around the world.

This article provides an introduction to the recently emerging model of microfinance funding in which retail loans or investments are made over the Internet by average people around the world.

The phenomenon of online microlending has taken off, creating a brand new virtual class of retail investors and lenders for microfinance institutions (MFIs) - perhaps changing the face of microfinance capital.

This article also provides an overview of recently emerging players Kiva and MicroPlace and the differences in their delivery model and points out various challenges on the horizon.

 

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