This document welcomes and provides introductory information to new honors program students. It introduces honors program faculty and staff, explains requirements for being in the honors program including taking an honors inquiry course. It also introduces students to Kiva.org, explaining how they will each receive $25 to loan through the site. Students are assigned the task of browsing Kiva to find a loan to support, and reflecting on their choice and learnings in a new section of their eportfolio.

1. WELCOME
Class of 2018
Honors Program Students!

2. Introductions
• Your Honors Program Faculty & Staff
- This name is important: Julie Hemstreet
• Where is the Honors Center?
– Sales Building
(with Education Department)
• Being “In” the Honors Program means
– Start with your 1 credit Honors Inquiry course this
fall! Be sure you are registered for this!
– You can find Julie in the Honors Center.

3. Need
Directions?
• Have you seen
the new library
construction?
• The Honors Center is just across
the road. X marks the spot.

4. Microlending Basics
• $25 minimum loans are made to people
around the world for …
– Education
– Small business
– Agriculture
– Adorable Water Buffalo ……………..
• Loans are paid back over
time
• So what? Who cares?

5. Understanding Microcredit
The What, Why, How and So What

6. Microcredit Defined
• Two components: “micro” and “credit”
– Micro= very small (e.g. microchip)
– Credit= any form of deferred payment, including,
but not limited to, loans (e.g. credit cards)
• Pioneered in the 1970s by Mohammed Yunus,
founder of Grameen Bank
– Credit to poor rural women in Bangladesh
– 2006 co-recipient (with Grameen Bank) of the
Nobel Peace Prize
• Model adopted and replicated worldwide

7. Why?
• Credit: essential to the development of private
sector activities
– Short-term loans, which are repaid from proceeds
of economic activity
• Need credit to set up a new venture or expand
an existing one
• Worldwide poverty: problem of lack of access
of the poor to credit at reasonable rates

8. Who? What?
• Impoverished borrowers with no collateral, no
stable employment and no verifiable credit
history
• Example: Rural farmers with no verifiable title
to land, who need money for fertilizers
• Example: Urban small store owner who needs
money to stock up on new products
• Example: Traveling salesman buys a moped to
travel to surrounding villages

9. By Whom?
• Loans: aid agencies, international
organizations
– E.g. USAID, DFID, NGOs
• 2005: KIVA.org founded
– Lenders are individuals
– Peer-to-peer lending (P2P)

10. How?
• Field partners on the ground identify projects
• Projects are advertised through microfinance
portal (e.g. www.KIVA.org)
• Potential lenders browse lists of projects, select
• Money is routed through portal organization and
field partner
• Borrower receives capital, finances project,
repays loan in installments
• Field partner charges interest
• Lender receives original amount

11. Schematic Representation
Donor
Donor
Donor
Field Partner
in country X
Portal
Organization
Borrower
Field Partner
in country Y
Borrower
Borrower
Borrower

12. So What?
• Bottom-up development
• Complements investment in infrastructure
• 1/3 more businesses through microcredit
• When paired with other microfinance tools
(e.g. savings bank), helps people lift
themselves out of poverty
• “Personalized” development

13. Why Women?
• The loan money is used for the stated purpose, rather
than financing non-project related expenses (such as
has shown to be the case when men are loan
recipients);
• - The repayment rate is higher when women are the
recipients, especially when women cooperatives are
formed and are collectively responsible for the
repayment, reducing the likelihood that men in the
household will take away the money and spend it;
• - Women tend to spend any discretionary income (e.g.
additional income from the venture) on long-term
investments such as better nutrition for the whole
family, schooling for children and savings

14. KIVA.org
• We have a grant to participate in microlending
through KIVA.org
• Each of you – first year Honors students – will
get $25 to loan
• Let’s see how it works …

15. Your Mission
• Go to KIVA.org and find a microloan that you want to
support
• Think about who, and why, and where… what are some
of the things that motivate you? Inspire you? What do
you value? How does the loan speak to you,
personally? And what interesting things have you
learned from browsing through the KIVA loans?
• Honors Program Selection Night: TBA – watch for
email from Julie
• Share your thoughts, ideas, reflections on your
ePortfolio.

16. Your Mission
Me – KIVA - $25 - ePortfolio

17. ePortfolio
• You’ve already started your ePortfolio!!!
– Need help? Here’s the name: Julie Kane.
– Need more help?
• Add a page to your ePortfolio where you can
feature your KIVA project
• Share what you’d like and add to it over time
• Honors Program event, featured ePortfolios
• Prizes for selected ePortfolios

18. ePortfolio
• Honors Program ePortfolio
• Show it …

19. ePortfolio
• Honors Program ePortfolio
• Show it …
• Get Started! Add a section to YOUR
ePortfolio.
• When you’re ready to share it – send a link to
Julie Hemstreet in Honors!

20. In Summary
And Now - What?
1. Welcome!
2. Be sure you are enrolled
in your 1 credit Honors
Inquiry course!
3. Go to KIVA and start browsing… and thinking!
4. Set up a new section on your ePortfolio where you can
start your reflection on your KIVA project!
5. We will see you again in a couple of weeks! Watch
your email for dates and details.
• P.S. The Honors Program has a FB page, be sure to
“Like” Us!

21. Questions?