FAQ

MEDA puts money into its partner microfinance banks to be used as capital for the working poor. When you make a contribution to MEDA, you are contributing into the programming of the microfinance bank. This money is then lent to micro-entrepreneurs to grow their businesses.

Every client that receives a loan is a real entrepreneur with a real business. These women and men are receiving loans and are growing their businesses because of the funds they receive. The clients are not receiving handouts and are required to pay back the entire loan with a reasonable interest rate.

It is important from a legal and moral standpoint to maintain the confidentiality of individual clients. People living in poverty have the same right to confidentiality as we would from our bank. Entrepreneurs who receive loans have a direct relationship with the microfinance institution in their community. They do not want their financial information linked with their names and village location for the world to see.

Client treatment and confidentiality is very important to MEDA. Information given on the website is all that will be shared. MEDA Trust recognizes that making available client names and locations would add the personal touch for people in North America but we believe that people in developing countries deserve the same rights to confidentiality as we do in North America.

MEDA Trust will put selected, client approved stories and information on the web to give you a fuller understanding of the types of loans, businesses, and families that are being impacted through microfinance.

All contributions to MEDA trust are given a tax receipt and can be used for income tax purposes in the US and Canada. If you are contributing to an individual or group account you will get an individual receipt. Organizational accounts are receipted as an organization.

MEDA has been directly involved in developing rural and urban microfinance and training facilities in Haiti, Jamaica, Bolivia, Nicaragua, Tanzania, Russia, Mozambique, and Romania. Several of these programs have graduated to fully sustainable, independent financial institutions. MEDA is developing partnerships in many other countries like Afghanistan, Pakistan, Egypt, Angola, and Argentina. MEDA Trust will be adding new partners to this site as the systems and partnerships are developed.

Begin browsing the loan catalog by clicking on the "Loans" button in the left side navigation bar. You are now free to choose how you wish to view the loans. Each loan description contains an ID number, some details about the client and the terms of the loan. To fund a loan, simply click on the "Fund Loan" button below the picture and a confirmation prompt will automatically appear confirming your selection. You may now choose whether you want to fund all or just a portion of the loan in $25 increments. Using the drop-down menu simply select the amount of the loan you’d like to fund and click “Fund this loan”. The loan and the amount you’ve funded will now appear in your portfolio.

Once you have signed-up and are logged into your portfolio you are free to add funds. Click 'Add Funds' in the left navigation bar under 'My Portfolio'. Begin by selecting the correct portfolio from the drop-down menu and enter the amount you wish to give.

Complete the billing and credit card information and click 'Add Funds' at the bottom of the page to complete your transaction. After submitting funds, the money is now accessible only through your portfolio. As you browse the loan catalog you will notice that loans vary in dollar amounts. You may add funds to your account at any time should you wish to fund a loan that is more than what is currently in your account. Money donated stays active for a period of 18 months. After this time, your donation is used to fund the launch of other microfinance programs.

Once you've browsed the selection of loans you may choose an entrepreneur you'd like to support. Once you've selected a loan simply click on the "Fund loan" button. You will now decide whether you'd like to fund the entire loan or just a portion of the loan in $25 increments. Using the drop-down menu, select the amount you wish to fund and click on the "Fund this Loan" button. The loan will now appear in your portfolio with the amount you've funded together with the total amount of the original loan in brackets.

After starting a group an invitation page will automatically appear. You have the opportunity to invite others to join your group. Simply enter the names and email addresses of friends, colleagues or family you’d like to join your group. Add a personal message in the space provided. Click 'Send Invitations' and potential group members will receive their invite.

Log into your account and your portfolio will automatically appear in the left side navigation. You are given the option to view both personal and group accounts. Simply select the portfolio you wish to access using the drop-down menu in the left side navigation bar.

Every loan profile will contain a Loan ID, some basic information about the client and the terms of the loan. Below the profile is a status bar that indicates the percentage of the loan that has been paid off by the client. This will be updated regularly for you to view the progress being made. The very bottom portion of your loan history displays recent loan payments. This graphic includes the amount repaid in the current installment, the date the payment was made and the outstanding balance of the loan. 

Click on ‘Join MEDA Trust’ on the left navigation bar and a ‘Personal Account’ form will appear on the screen. Fill in all required fields as designated by the asterisk. Passwords must be 6 or more characters in length and can use any combination of letters or numbers. Click ‘Join’ at the bottom of the form and you will automatically directed to your portfolio page and a confirmation will be sent to you via by email that includes your password and login information for your records.

On your portfolio page you will have the option to “Start a Group” in the left navigation bar. Click on this link and a form will appear. Fill in all required fields as designated by the asterisk. Choose a Group password that is different than your personal password. Passwords must be 6 or more characters in length using any combination of letters or numbers. Click 'Create Group' once leaders information is complete. The person who initiates a group is the group leader and will be responsible for managing the portfolio. 

MEDA chooses organizations to work with based on a strict application process. MEDA is a recognized world leader in microfinance and our models are adapted in countries around the globe.

MEDA Trust maintains regular audits of all microfinance institutions they partner with. In addition to regular visitations, all microfinance institutions have staff trained by MEDA. Each institution meets all legal requirements for the country of origin and we maintain a strict standard.

Funds deposited in your account are directed into the programming of one of MEDA’s carefully chosen microfinance bank partners. Money in the bank portfolio is then lent to selected micro-entrepreneurs to grow their businesses. Money that is paid back by entrepreneurs is returned to the bank’s portfolio and is used for additional loans to hard working entrepreneurs.

Entrepreneurs who meet microfinance institution requirements have been approved for loans and are given loans regardless of whether they are chosen by a donor. The microfinance institution has its own portfolio that will fund all clients approved for loans that are not selected through MEDA Trust.

"Total Funds" is the total amount of funds you have donated to MEDA Trust since you opened your account. "Funds Invested" is the total amount of funds that are active in your account. This figure includes all money currently loaned to entrepreneurs and any money available in your account.  "Funds Available" is the total amount currently on hand to spend. "Value of Loans Funded" is the total value of your investment returns since you opened your MEDA Trust account. Because of the revolving nature of loans, donations are able to fund repeated loans throughout the active period. 

Once an entrepreneur’s loan is repaid, the money is put back into your MEDA Trust account and is free to be invested in another entrepreneur. This money is committed to helping entrepreneurs and may not be withdrawn from MEDA Trust. It stays in your account for 18 months. when the 18 month period is over, the money is used to fund the launch of another microfinance institution in a developing country.

Entrepreneurs that receive loans are charged interest at a reasonable rate. Any interest gained on loans returns back to the portfolio of the respective microfinance institution and used to fund the work of that institution. In this way the microfinance institution can become sustainable and eventually not need any more contributions.

Once you have joined a group you are free to add funds to your group account, view member lists, suggest loans to your group and email group members about the loan. All these options are located on the left navigation bar and appear once you have chosen your portfolio. All groups automatically appear in the left navigation option bar. Simply select the portfolio you would like to view and the correct portfolio will appear. 

Similar to what happens with most financial institutions, if a client fails to repay their loan, that money is lost from your portfolio. You are sharing the risk with MEDA, the institution, and the client.

While most loans on the MEDA Trust site have regular payment schedules, some sectors like grain and cattle farming typically involve lump-sum repayments of loans at the end of the loan schedule.

You have 18 months from the date you deposit funds into your account to use those funds to support a loan. After the 18 month “Active Period” is finished, these funds are no longer available for active use and your donation becomes a part of MEDA’s broader microfinance work. You are free to deposit more funds at any time in order to support additional loans.  

All loans are carefully tracked by local microfinance institutions in originating countries. Institutions look after applicants, applications and the paying back of all loans. All information is connected with MEDA Trust via the internet and all loan information is updated every week.

At MEDA, we believe in creative approaches to international development. Technology has opened up new opportunities for people around the world to help the working poor. A website allows more people worldwide to contribute to those living in poverty and feel connected with real people accessing these loans.

MEDA Trust wants to contribute to long term solutions to poverty, not simply short-term band-aid solutions. We support local microfinance institutions that provide strong, sustainable support for ongoing business growth. MEDA believes in helping local financial institutions provide services to their community. These institutions will remain long after MEDA leaves, providing a way for the working poor to rise above poverty and discover the dignity and confidence that comes from earning a living.

To see the value of this approach, follow your own portfolio’s report on the “value” of your loans made. You will see the value of the loans made exceed the amount of your initial contribution.