Microfinance is the offering of very small loans, typically ranging from $25 to $500, to people in developing markets to grow their businesses. The economic model won a Nobel Prize in 2006 and in October 2007 eBay launched MicroPlace, a website where investors can chose to invest in microfinance institutions (MFIs) in specific areas of the world.
Whereas before, only large institutions had the means to diversify their investments through microfinance, now individual investors can simply click on the area of the world they would like their microfinance investments to support.
They are then presented with a list of MFIs operating in the area, their missions, and the terms of investments, including interest rates, maturity, and security issuer.
Read more about this growing industry: MicroPlace: Microfinance for the Masses
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