MyC4 is aiming to help eradicate poverty by 2015, in other words, supports the United Nations 2015 Millennium Development Goals and Global Compact. It’s doing so, by offering market place for micro credits, specifically in Africa. People having a business in for example Uganda can apply for a loan (say €1500). The loan will be given by a group of people that all invest somewhere between €10 and €500. The interest rate is determined by using a bidding process (as an investor you have to determine the interest rate you want). Payback is monthly, usually over a period of 12 to 24 months. So far, MyC4.com has a rate of on time payments of approximately 95% and none of the loans have defaulted yet.

I’ve just put €1000,= in various opportunities, none of which have been provisioned yet. This will happen though in the next few weeks I hope.

Previously I looked at KIVA, another marketplace for micro credits. The problem with KIVA is (last time I looked at it) that you do not receive interest from your loan. (as a European you can invest your money, but won’t get anything in return for it. Due to fiscal limitations, having interest flow back to Europe is impossible or so)

I’m a strong believe in the concept of micro financing if it’s beneficial for both sides. Philantropy is nice and all, but only goes so far. Making it economically viable will attract a much bigger group of people that will invest, increasing the chances of us achieving the Millennium Goals.

Go and have a look at MyC4.com. You do not have to start with thousands of €, a simple €50,= or €100,= will do. I’ll keep you up-to-date via this blog on my experiences.

An interesting blog on the subject seems to be P2P-Banking.com.