An ultra-local micro-lending system is proposed that will provide a community, access to a common pool of funds available only to members of that community. Funds could be provided to the community pool based on the population size of the community. The funds are also generated through encouraging the community members to save. Savings add money to the community pool, which is available for borrowing by others in the community. The system and method encourages the borrower to repay loans through social pressure by informing the loan details to the local community, also incentivize against default through increased access to more funds by building a credit history. The system and method allows efficient management of credit within a community while maximizing access to funds, and further provides an effective method for aid agencies or organizations to provide targeted aid to the communities at need.
Verley, Filip; Ricketson, Jonathan; Min, Anna; and Lyon, Richard, "Ultra Local Micro Lending", Technical Disclosure Commons, (June 03, 2016)