Microfinance expert set to speak tonight

Jessica Jackley, a co-founder of www.kiva.org, will speak on campus today about the advantages of microfinance and her experiences at Kiva, a Web site that allows individuals to provide loans to small-business entrepreneurs in developing countries.

Kristy Anderson, president of IU’s Trockman Microfinance Initiative, said the group is looking forward to Jackley’s visit. The group is responsible for bringing Jackley on campus.

“We decided to invite Jessica because she’s a really engaging speaker, and she can speak on microfinance on a more personal level, one that everyone can understand,” Anderson said.

Students at the Kelley School of Business founded TMI in 2007 to promote education about microfinance among IU students.

Microfinance is a unique way to help solve the problem of worldwide poverty. Anderson said microfinance institutions are set up in poverty-stricken areas to provide loans to small-business entrepreneurs at a decreased interest rate.

Visitors to www.kiva.org can browse individual entrepreneurs from countries like Peru, Lebanon, Ukraine and Sudan who are requesting money for everything from clothing and charcoal sales to bakeries and fruit stands.

“Microfinance is essentially providing access to financial services to people who don’t usually have access to them,” Anderson said.

Lenders can then select who they want to support and loan them a set amount of $25. Kiva does not, however, guarantee a return on the investment, as the disclaimer at the bottom of its site says.

Though the loans are risky, Anderson, who has given a loan through the site herself, said she thinks they’re worth it.

“That’s the great thing about Kiva, it lets people such as myself lend out to other nations,” she said.