Posted on April 3, 2009 - by Gavin

Rice University student set up micro loan business…

KHOU.com

HOUSTON – A new type of social networking is going on at local college campuses. Students are going online to loan their money to people in third world countries. 

Students at Rice University have set up a non-profit organization to provide micro loans to people in developing nations. The loans are typically $25, $50 or $100.

The organization is called Owl Microfinance and recently the group loaned money to a woman named Stella in Tanzania to help her start a chicken farm.

While visiting Atascocita High School, the Rice students told high school students that money for micro loans comes straight out of the pockets of ordinary people who are paid back within a few months or a few years.

“I work for money that I can use just for pleasure and just to have fun.  They need it for something real,” said high school student Jenna Dominguez. 

Micro loans aren’t just growing in popularity among students who want to make a difference. They’re also appearing in the for-profit business world.

People with money to lend go to websites and find people who want to borrow.  There are fees and credit checks.

“The success rate has been high, even online. Approximately 98 percent of the people pay back,” said Professor Saleha Khumawala from the University of Houston.

Source: http://www.khou.com/business/stories/khou090402_mp_micro-lending-students.97e6f090.html