- 1). Find a microlending institution to work with. There are two main types of microlending institutions: Field partners and aggregators. Field partners are the actual lending institutions in third-world countries that deal with borrowers daily. Aggregators like Kiva.org match investors with field partners. Be sure to do extensive due diligence on your microlending institution of choice.
- 2). Setup an account. Once you've picked an institution to work with setup an account online and fund your account. Most accounts can be funded via paypal or wire transfer. Because microlending is a social cause, there should be no fees or costs associated with setting up and funding an account.
- 3). Browse the loan offerings. Now that you have capital in your account to lend take a look through the loan offerings and find an entrepreneur whom you'd like to help. Take into consideration the use of the loan funds, the individual's personal and family situation, and the economic and political environment of where they live.
- 4). Pledge funding. Once you've decided to help fund a loan, commit to it by pledging your funds. Investors can pledge as little as $20 toward a microloan. Remember, if you're working with an aggregator service like Kiva.org, your loan will process only if it's fully funded.
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