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An Affiliate of Nyima Foundation |
Our Mission
Nyima Microfunds lending program enables social investors (individual lenders) to empower disadvantaged and vulnerable people around the world to create their own opportunities for better lives. Microfinance loans help address the growing demand from the world’s emerging microentrepreneurs. We believe microfinance is a sustainable model where borrowers can improve their lives with dignity and help alleviate poverty.
Impact Investing
We utilize a peer-to-peer lending/borrowing model and work with field partners who are nonprofit organizations, social businesses, foundations, and community microfinance institutions - collectively called microlenders. We partner with socially responsible microlenders to help bring about lasting change in the lives of disadvantaged and vulnerable people. Oftentimes, interest rates charged by for-profit microfinance institutions can range between 30% to 50%, and some as high as 80% or more.
Our model enables social investors to directly lend to borrowers at significantly lower cost of capital rates. Social investors lend the principal, receive monthly repayments until loan maturity, and a return on investment of 3%. Borrowers repay the principal in monthly installments, pay the opportunity cost to social investors, 3%, and pay the cost of capital to microlenders, about 5% to 9%. 100% of your loan is sent to the borrowers. The obvious benefit from significantly lower interest rates of 8% to 12% is the bottom line – profitability to the microentrepreneurs. Profitability translates to higher likelihood of repayment and a path to poverty alleviation.
After repayment of your loan, social investors have three options: (1) make another loan, (2) receive the principal back, plus a return on investment, or (3) make a tax deductible donation to Nyima Foundation where 100% will be used for charitable purposes. At any time, you have the option to forgive the loan. Our field partners on the ground help qualify the microentrepreneurs.
We are currently beta testing a fund.
Our model enables social investors to directly lend to borrowers at significantly lower cost of capital rates. Social investors lend the principal, receive monthly repayments until loan maturity, and a return on investment of 3%. Borrowers repay the principal in monthly installments, pay the opportunity cost to social investors, 3%, and pay the cost of capital to microlenders, about 5% to 9%. 100% of your loan is sent to the borrowers. The obvious benefit from significantly lower interest rates of 8% to 12% is the bottom line – profitability to the microentrepreneurs. Profitability translates to higher likelihood of repayment and a path to poverty alleviation.
After repayment of your loan, social investors have three options: (1) make another loan, (2) receive the principal back, plus a return on investment, or (3) make a tax deductible donation to Nyima Foundation where 100% will be used for charitable purposes. At any time, you have the option to forgive the loan. Our field partners on the ground help qualify the microentrepreneurs.
We are currently beta testing a fund.
Lending to microentrepreneurs involves the risk of losing the principal value. Nyima Foundation does not guarantee repayment on your loan.
