It is very easy to get started investing money in the low risk high profit market of overseas micro lending. Learn how to get started making low investment and get high return with little risk funding loans for as little as 25 bucks!

The emerging market of micro lending,
You don’t have to be a millionaire to start an international company. Micro lending is a strong emerging industry. Micro lending serves to be a great advantage to developing countries with citizens who are in dire need of financial assistance. This method could stimulate the economies of these countries – and your own bank account.

Introduction to Micro Lending
Micro lending is also known as micro finance or micro credit. This generally refers to the process of extending small loans to less fortunate people, usually in other countries. These loans are primarily intended to assist people in starting their own businesses or expanding an existing one. This practice began in Bangladesh in the 1970s. Now it is mostly done in countries outside of the US, but the prospect is expanding. Micro Lending allows poor, unemployed, or otherwise incapable people to engage in self-employment and business projects. This industry serves to be a secret goldmine for those wishing to generate extra income while also helping to stimulate the economy and assist the poor. It is one of the few ways to help others while helping yourself. These people are also able to generate their own income and to be independent, possibly improving their financial situation. Most of these people also have families and overdue bills to take care of. When they are able to pay their own bills and establish a disposable income, the economy reaches a growth spurt. Their standard of living also improves dramatically. A recent study of this industry revealed that there are about ten thousand Micro Lending companies in the United States. The study also reveals that the poverty of the customers does not determine profitability. The key is to develop loan portfolios which are designed to keep default rates at a minimum or, hopefully, nonexistent levels. The report foresees consolidation of these micro lending institutions as well as down-scaling of large lending institutions. One of the most prominent Micro Lenders is Muhammad Yunus. Yunus has received the Nobel Peace Prize for his successful and altruistic enterprise, the Grameen Bank. Investing only $27 to many women in Bangladesh, Yunus has helped to save women from high-interest rates. These women have been able to use these micro loans to jump-start their businesses and help support their families. The Grameen Bank has a 98 per cent repayment rate. The bank is now worth over 2.5 billion dollars. Yunus is a prime example of the opportunities available by giving small loans to poor people and allowing them to help themselves.

Who Needs Loans?

• Unemployed people
• Poor people
• People who don’t have credit or collateral
• People wishing or struggling to start a businesses
• Families and people needing income

The Market Overseas
Even though there are millions of people below the poverty line in the United States, it is difficult to sell micro lending to US customers for various reasons:

1. There is easy access to loans even if you’re poor.

2. Loans interest rate caps are higher in the United States.

3. Costs of marketing and service are higher. However, if you offer micro lending overseas, you can gain through double or triple interest.

Of course, the interest you should offer must always be lower than the interest people overseas would get from local loan sharks. Otherwise, they would opt for these local lenders. Being competitive by offering lower interest rates will allow them to come to you for these loans. The interest rates vary with each country. These rates vary from 20% to 90% depending on the country from which the borrower resides in. This is a great way to earn money and help people. A Micro Lender can offer seemingly small funds such as $100, $200, and even $25 to people in great need of these services. Then when the people begin to build their businesses and generate income, they pay back your loan amount plus your competitive interest rate.

Steps to Becoming a Loaner

1. Decide the amount of money you will be able to loan at a time ($25, $100, etc.)

2. Establish a no-tolerance policy for late/missed repayments< 3. Establish areas you will be lending to

4. Establish a competitive interest rate

5. After a previously set date, make sure loans and interest are paid back (2 weeks, 30 days, etc.)

6. Collect money and make profit!

Word of Caution
Before you give out loans, make sure to interview the clients and make sure they will be capable to pay the money back to you in a reasonable amount of time. Setting up a weekly or bi-weekly payment schedule works for both sides and is easier than getting one larger sum back to you. You may also consider adding to the repayment amount any fees you may have during the sending and processing of the money, such as postage and handling, especially to foreign areas.

Keep it Organized
It is a good idea to set up an organized system for tracking who and when you give loans to, as well as how much the loan was and how much the interest rate will be. That way, you will know when loans are due at what times and when it is time to start requesting your money if a client is late. You can do this easily from a simple Word Document, Excel, or any other software depending on your computer skills. Good Luck! Micro Lending is a great way to make a revenue on the side of your existing job or business, and it serves a great cause to less fortunate people. Simply, it’s a “win-win” situation, with an added benefit of good karma on your side. With loans being small increments, and careful consideration to the people you loan money to, there is little to no risk of loss, and most people receiving these loans are grateful for your services and will always repay the loans back. If you concentrate your services to a small area, your profits are surely going to skyrocket.

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