The Global Micro Lending Initiative:

"The only place poverty should be is in... museums."
-Muhammad Yunus, 2006 Nobel Laureate

Global Micro Lending

GML Resource Hub

Information and resources related to micro-lending, micro-loans, micro-investment, social finance, and peer to peer lending.

GML Mission Statement:

Everyone deserves access to a financial system which is fair, safe, and transparent. GML's mission is to foster connections between organizations which provide microlending and microfinance services.

Motorcycles and Microlending

Around the world, one of the most convenient and affordable modes of transportation remains motorized two wheel vehicles like motorcycles. For Americans, owning a motorcycle opens up new relationships with other riders. Riding motorcycles is more of a hobby and the bike is often their secondary vehicle. However, in underdeveloped countries, the majority of motorcycle purchasers use their bike, scooter, or moped as their primary mode of transportation and an integral part of their small business. Since cars and trucks are too expensive to buy and maintain, a motorcycle is the most economical choice when building and operating a small business. Regardless of where it's located, a motorcycle provides the possessor an opportunity to both generate income and travel for pleasure.

Although microlending was first established outside the United States, Americans who have bad or no credit are discovering benefits that people in Bangladesh have been taking advantage of since the late 1970s. Borrowers who, based on their credit, don't qualify for credit cards or traditional bank loans, can qualify for microloans. In the United States, microloans for motorcycle purchases are available up to $50,000. A loan for a motorcycle can be used to purchase any motorcycle from any private individual, dealer, or other party. The motorcycle can be used for both personal and business use. When applying for a motorcycle loan, microlenders tend to authorize loan requests from borrowers who plan on using the motorcycle in the course of running a business or charitable organization. Moneylenders trust borrowers who have a greater plan for the motorcycle than just a desire to ride.

Microlenders provide more than just a source of financing. The focus of microlending is to make a positive impact on the community. Microloans are designed to stimulate local economies and reduce poverty. One way this is achieved is by allowing prospective businesspeople to get low cost loans to buy motorcycles for use in their trade or business. Microlenders offer low rates for motorcycle loans to make it easier for borrowers to repay their loans. This safeguards financially vulnerable borrowers from defaulting on their loans and encourages a productive economy.

Microfinance is also used to fund motorcycle related businesses. For example, a potential client from Indianapolis applies for a loan with a microfinancing firm. The proposed loan will fund a motorcycle shop that will build, repair, and customize motorcycles. After the loan funds are dispersed, the new business owner purchases the necessary materials and hires an employee. The business begins to turn a profit and the borrower is able to pay back the loan over monthly installments. This simple financial service created an entrepreneur, impacted residents whose bikes were in need of repair, and provided a local person a job.

Additionally, microfinance programs open up inexperienced borrowers to business training, savings plans, and continuing education. The motorcycle shop owner, who was mentioned earlier, received a loan plus access to utilize these programs. Formed to transition the borrower out of poverty and into a more productive lifestyle, microcredit delivers incentives not provided by traditional banking organizations.