Comments on: PLEASE READ THIS: Me and the loan sharks again… http://www.connectioneconomy.com/2005/05/23/please-read-this-me-and-the-loan-sharks-again/ Blogging about Tomorrow's world Today Fri, 19 Mar 2010 11:41:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Confucianus http://www.connectioneconomy.com/2005/05/23/please-read-this-me-and-the-loan-sharks-again/comment-page-1/#comment-263 Confucianus Wed, 29 Jun 2005 16:25:39 +0000 http://www.tmtd.biz/?p=137#comment-263 The problem is that the people who borrow from Micro Lenders cannot get loans from the larger institutions. What they repay is terrible. Borrow R3000 and you repay R12000 over 12 months. They however contend that a fast food outlet makes a profit of between 100% and 500% over a much shorter period of time. Certain retail stores that sell on credit have the same type of profit margins. Compared to the above, they have a small profit margin. Money has become a commodity and they actually sell money. I think most people have an ethical problem with the concept and compare Banking Standards with Micro Lending. They are not the same. A regulated Micro Lending industry is needed when one considers that the real Loan Sharks have a 100% per month interest rate, whereas the requlated industry is 30%. The problem is that the people who borrow from Micro Lenders cannot get loans from the larger institutions. What they repay is terrible. Borrow R3000 and you repay R12000 over 12 months. They however contend that a fast food outlet makes a profit of between 100% and 500% over a much shorter period of time. Certain retail stores that sell on credit have the same type of profit margins.

Compared to the above, they have a small profit margin. Money has become a commodity and they actually sell money. I think most people have an ethical problem with the concept and compare Banking Standards with Micro Lending. They are not the same. A regulated Micro Lending industry is needed when one considers that the real Loan Sharks have a 100% per month interest rate, whereas the requlated industry is 30%.

]]> By: Barrie http://www.connectioneconomy.com/2005/05/23/please-read-this-me-and-the-loan-sharks-again/comment-page-1/#comment-79 Barrie Mon, 23 May 2005 20:44:34 +0000 http://www.tmtd.biz/?p=137#comment-79 Take a look at this article from Fast Company (http://www.fastcompany.com/magazine/87/open_essay.html) to see an example in the space you're suggesting.... "In the developing world, Pro-Ams are solving a historical scarcity of professional resources. The Grameen Bank, founded by Muhammad Yunus, a Bangladeshi economics professor, trains barefoot bankers to deliver loans to people earning less than a dollar a day. This Pro-Am workforce makes it possible to cost-effectively administer 2.8 million loans worth more than $4 billion. Had Grameen relied on professionals, it would have reached a tiny proportion of the population." Take a look at this article from Fast Company (http://www.fastcompany.com/magazine/87/open_essay.html) to see an example in the space you’re suggesting….

“In the developing world, Pro-Ams are solving a historical scarcity of professional resources. The Grameen Bank, founded by Muhammad Yunus, a Bangladeshi economics professor, trains barefoot bankers to deliver loans to people earning less than a dollar a day. This Pro-Am workforce makes it possible to cost-effectively administer 2.8 million loans worth more than $4 billion. Had Grameen relied on professionals, it would have reached a tiny proportion of the population.”

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