Small loans. Big changes.

Money money money. It's one of those big problems. Something you hate to be tied to but can't seem to survive without it unfortunately.

I'm one of the very few students who are not plagued with the typical student debt that one must incur when pursuing post secondary education. I'm pretty lucky.

I've definitely heard all the horror stories of OSAP though and what a pain it is. I've made the mistake of lending a friend money. I've also begged my parents for a few extra bucks for a "really important" purchase. I've overheard co-workers stories of loans from the bank. And I've seen that episode of the Office where Michael gets locked into a crazy mortgage for his condo.

Loans come in all shapes and sizes.

And loans were changed forever in the 1970s with the Grameen Bank.

The jist of the Grameen Bank (GB) is that it was founded by Prof Muhammad Yunus to give impoverished people loans so that they can use it- along with their entrepeneurial skills- to move out of poverty. The loan is usually small and must be paid back.

GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable.

Most people who borrow from the GB are women. Women are also the most impoverished.

Yunus notes "Most distinctive feature of Grameencredit is that it is not based on any collateral, or legally enforceable contracts. It is based on "trust", not on legal procedures and system."

The tem for loans are microcredit. It is small amounts of credit that can make a huge difference in someone's life. With these loans people can buy supplies to make pots to sell, rent a store to sell their goods, buy machinery, or anything else that they will need to start a business.

The loans are not for short term needs but for long term gain. Money used to buy a kiln to make pots is more beneficial than buying food for the rest of the week.

Yunus was also the recipient of the Nobel Pace Prize in 2006 "for their efforts to create economic and social development from below."

Now for the coolest thing...YOU can get involved in microcredit personally!!

Kiva.org gets you involved in microcredit by allowing you to sponsor an entrepeneur.

You can go to the website, pick out someone to sponsor, get journal updates, and "as loans are repaid, you get your loan money back."

Kiva is also pretty big on transparency and they want you to know what's going on.

Microcredit/Microfinance loans have a higher payback rate than regular loans.

While I don't have a Kiva account it does seem like a good way to get involved in microcredit and changing someone's life for the better. While it is not without it's flaws there is a huge possibility for change. And you get your money back. If you're feeling adventurous (or generous) give it a try, and let me know how it works!