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OUR MODEL: IMAF
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INTEGRATED MICRO ADVANCE FUNDING
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Inspired by the Fair Trade and Micro Finance movements, MyMela has developed a business
model tailored to the specific needs of India’s artisans as well as to the unique
opportunities of an online marketplace. We call our model for social and economic development
Integrated Micro Advance Funding or IMAF. It consists of the following:
- Providing a global online market for Indian artisans
- Offering zero interest micro advances to artisans through field partners
- Lenders repaid with a 10% bonus in marketplace credits which can be used to shop
or re-lend
- 20% of profits invested in community improvement initiatives including education,
healthcare, social service and vocational training projects.
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OUR FOUNDING PHILOSOPHIES: Fair Trade and Micro Finance
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The Fair Trade movement seeks to establish greater equity in international trade
by offering improved trading conditions to marginalized producers and workers. The
goal is to increase wages and improve working and living conditions by providing
market access with fewer middlemen. MyMela offers artisan producer groups direct
access to a sustainable global market through its online marketplace. We identify
producers of high quality handmade items through partnering with non-governmental
organizations and cooperatives. These field partners are carefully selected because
they adhere to Fair Trade goals such as improving access to education, affordable
health care and adequate nutrition, as well as concern for the environmental impact
of producing and transporting goods.
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MyMela’s IMAF model was inspired by Micro Finance: the practice of providing small
loans to low-income individuals or groups who do not have access to traditional
banking services. The loan component of MyMela offers visitors to our site the chance
to make zero-interest loans to artisan groups who use these funds to make capital
improvements, buy raw materials and train other workers. Small loans from individual
lenders accumulate until the full amount of the loan request is reached. This may
take some time so, in order that the artisans may receive their loan immediately,
MyMela advances the entire loan amount to the artisans up front.This is an especially
helpful feature for cash poor artisan businesses, many of whom operate on very slim
margins and would not be able to fill orders without ready cash to purchase raw
materials. Our innovative practice is, thus, more properly called a ‘micro advance’
rather than a micro loan.
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The joy the artisans bring into our lives is repaid by the hope we bring into theirs.
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Once received, artisans have three months to repay their interest-free MyMela loan.
Lenders on our site are repaid the amount of their loan plus a 10% bonus in marketplace
credits. They receive equal payments over three months into their MyMela account,
starting from the day they make the loan. While we have confidence that our artisans
will not default on their loans, MyMela assures lenders that they will receive repayment
in MyMela credits regardless.
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A COMMUNITY EFFORT
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Consistent with the philosophy behind the Fair Trade movement, MyMela supports the
community development efforts of its field partners through investing 20% of all
profits from the online marketplace into community projects. Field partners fund
educational, healthcare, training and social service initiatives for artisans and
MyMela is honored to be part of this ongoing mission. In the About Us section of
our site you can find detailed profiles of our field partners and the ways in which
they assist their artisan communities.
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PERSON TO PERSON: An Eco-system of Change
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Creating a direct connection between consumer and producer is MyMela’s primary goal.
Visitors to our site can enrich their lives with beautiful handmade crafts from
Indian artisans; artisans whose stories they can read and whose struggles they can
respond to directly by making micro loans. This generosity is repaid in marketplace
credits that can be used to shop or lend again. The joy the artisans bring into
our lives is repaid by the hope we bring into theirs. With your help, we can make
a difference in our world.
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