eBay the worlds biggest online auctioneer and payments company is now entering into the world of microfinance. Microplace.com a micro financing website was bought by eBay sometime in 2006 Microfinance is the supply of loans, savings, and other basic financial services to the poor which need not be a large sum of money and which does earn you some return

Just for those who are still not clear, eBay is allowing users to lend their money to small business owners by which users are helping the needy and also earning some interest (profit) in the bargain which ranges from 1-4%. Its something like ‘earn money and get blessed’

You don’t need thousands of dollars to help others, the minimum investment is $100. What remains same is the eBay style of making money.. brokerage. MicroPlace makes money from charging issuers to list. “We aspire to break even and if and when we reach profitability, eBay intends to reinvest any profits back into its own social initiatives.” Said Tracey Pettengill Turner Founder & General manager of microplace.com

PayPal, eBay’s online payment service, will process the loans free of charge. Investments may be made through eBay’s PayPal service or a regular bank checking account.

The common question – is my capital guaranteed?

“NO” capital is not guaranteed but they claim that the people who receive the money have a solid track record on repayment. I guess that’s a risk one takes, but such services have proved successful in the past. There are many other online organizations which provide the same services. here are a few names - Rareplay, Yahoo Promotions, Rednoseday, Prosper, Robinhoodfund

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