Instead of taking out loans, some students will be giving them beginning this semester.
The MicroFinance Foundation will lend to impoverished entrepreneurs in Zimbabwe who want to start their own businesses.
Finance major Bastian Böckenhüser started the group with four other students after a friend started a similar organization at another Florida school.
He said his friend’s group lent $200 to a tailor in Uganda to buy a new machine. The group gave him one year to pay back the loan.
After two months, Boeckenhueser said the tailor paid back the loan and gave an extra $50.
Boeckenhueser said the MicroFinance Foundation will give out small loans, between $200 and $500, with very low interest rates to people who would normally be denied loans because of their lack of income or credit.
“At least we’re giving them the opportunity to try,” he said.
The group chose Zimbabwe because it is one of the top ten poorest countries. Citizens can apply for the “microloans” with the group’s liaison in Zimbabwe, who will send the applications to the group. The group will review the applications and choose recipients during weekly meetings.
The group’s first meeting will be held Wednesday at 6:15 p.m. in Stuzin Hall, room 104.
