MICROCAPITAL BRIEF: YMCA Launches Ymicro Website to Raise Donations to be Disbursed as Microloans in Colombia, Sri Lanka, Gambia and Liberia by YMCA Branches, Microfinance Institutions

The Seattle, Washington, branch of the Young Men’s Christian Association (YMCA), an organization offering recreation and community development programs that has 45 million members worldwide, recently launched Ymicro.org, a website soliciting donations from the public for on-lending to entrepreneurs in developing countries [1,2]. Repayments collected from borrowers will be earmarked to fund other microloans and programs such as schools and job training for older youth [2].

Ymicro currently funds partner YMCAs in Colombia, Sri Lanka, Gambia and Liberia [1]. YMCAs in Sri Lanka and Liberia will lend through existing internal microloan programs, while other YMCA chapters may collaborate with local microfinance institutions (MFIs) to disburse the loans. [3] Other unnamed countries are set to come on board in early 2012 [2].

The web-based platform, which was launched in July 2011, was modelled on Kiva, a US-based nonprofit that allows individuals to make loans to microfinance institutions (MFIs). The program is currently in its pilot phase, which will last until December. [2]

According to the Ymicro site, updates on the use of the microloans will be posted starting November. Numbers revealing the scale of the program have not yet been released.

By Kristha Abores, Research Associate

About Ymicro:
Launched in July 2011 by the Seattle, Washington, branch of the Young Men’s Christian Association (YMCA), Ymicro is website soliciting donations as small as USD 25 for lending to entrepreneurs. Repayments collected from the borrowers fund other microloans and programs supporting the community such as schools and job training for older youth. Ymicro partners with YMCA branches, which either disburse the loans directly or collaborate with local microfinance institutions (MFIs) for this purpose. As of September 2011, Ymicro works with YMCAs in Colombia, Sri Lanka, Gambia and Liberia. Financial information on Ymicro is not yet available. As of 2010, the National Council of YMCAs of the USA reported total revenue of USD 90 million.

About Kiva:
Incorporated in 2005, Kiva is a US-based online portal allowing individuals to make loans to microfinance institutions (MFIs), which then make loans to people with low incomes. Kiva partners with microfinance institutions (MFIs) in 60 developing and rich countries. As of September 2011, Kiva reports that: it has engaged 988,000 individual lenders, 81 percent of loans have been made to women entrepreneurs, the repayment rate on these loans is 98.9 percent and the average loan size is USD 385.

Sources and Additional Resources:

[1] SeaMo: “YMCA Launches Pilot Microfinance Program”, http://www.seattlemicrofinance.org/ymca-launches-pilot-microfinance-prog

[2] Ymicro: “About Us”, www.ymicro.org/aboutus

[3] Ymicro: “Partners”, www.ymicro.org/partners

Microcapital.org article, May 5, 2011, “MICROCAPITAL BRIEF: 17 Websites Now Allow Individuals to Commit as Little as USD 20 as Microfinance Loans”, https://www.microcapital.org/microcapital-brief-17-websites-now-allow-individuals-to-commit-as-little-as-usd-20-as-microfinance-loans

MicroCapital Universe Profile: Ymicro, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ymicro

MicroCapital Universe Profile: Kiva, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kiva

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: