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What is the “MyMela Loans” Program?
MyMela has created the “MyMela Loans” Program to help Indian artisans preserve their
art and their way of life by providing them with zero interest loans.
How does it work?
In conjunction with its field partner, Asha Handicrafts, MyMela identifies the loan
requirements by different Artist Groups and uploads the loan requests to MyMela.com.
You can browse all available funding requests on the MyMela’s Loans List, choose
your favorite Artist Group, and then make a”MyMela Loan”. Lenders can fund as little
as $25 and as much as the entire amount of the loan.
What does funding an Artist Group mean?
When you fund an Artist Group, you are providing them with the opportunity to purchase
materials, make capital improvements or train other workers. Furthermore, these
loans allow Artist Groups to increase production and to expand their businesses
to meet growing global demand generated, in part, by MyMela’s online marketplace.
Why did MyMela partner with Asha Handicrafts?
Asha Handicrafts is a Fair Trade Certified non-profit organization that works to
help and support a network of 6,500 artisans in 10 Indian states. MyMela utilizes
Asha’s expertise to identify artist groups that need funding.
How do I make my first Loan?
To make your first loan you must have an account with MyMela. Once you are signed
up and logged in, choose a loan from the Loan List. Select the amount you want to
loan, click “FUND NOW” and proceed to checkout.
When and how does the loan reach the Artist Groups?
In order to meet the urgent needs of artist groups, MyMela advances them the full amount of the loan at the time the request is approved. We call this a micro advance.
When does the Loan Term officially begin?
The Loan Term begins on the date the Artist Group collects its funds from MyMela.
How long will it take for an Artist Group to repay the loan?
An artist group will repay the full amount of the loan approximately 3 months from
the date it collects its funds.
Will I get my money back?
You will get your money back in the form of MyMela Credits plus a 10% bonus (also
payable in MyMela credits).
What is a MyMela Credit?
One MyMela Credit is the equivalent of one dollar. Therefore, for every dollar you
lend, you will receive a MyMela Credit plus a 10% bonus (also payable in MyMela
Credits).
When do I start earning MyMela Credits?
Starting one month after a loan is made and continuing over the next 3 months, MyMela
Credits equal to the loan amount plus 10% bonus will be deposited into the lender’s
account in equal monthly payments. For example, if you lend $25 on January 8, a
total of $27.50 MyMela Credits* will be deposited into your account in equal monthly
payments over the next 3 months as follows:
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Date
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Amount of MyMela Credits Deposited into Your Account
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February 8
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$9.20
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March 8
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$9.20
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April 8
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$9.20
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Total
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$27.50
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* $25 (original loan amount) plus $2.50 (10% bonus) equals $27.50 payable as $27.50
MyMela Credits
How can I use MyMela Credits?
You can use your MyMela Credits in two ways: shop for more beautiful hand crafted
works of art, or choose to invest in another artist group.
Will MyMela Credits expire?
Your MyMela Credits will never expire.
Can I redeem MyMela Credits for cash?
Your MyMela Credits cannot be redeemed for cash.
What happens if an Artist Group defaults on a loan?
Even though we are not anticipating that an Artist Group will default on their loan,
there is always a risk they may encounter unforeseen hardships and be unable to
pay the loan back. In the event that an Artist Group defaults on a loan, MyMela
will assume 100% of the risk. Therefore, you will earn MyMela Credits even if an
Artist Group defaults.
Will I earn any interest?
Although we are not charging our participating Artist Groups any interest, we will
pay you a 10% bonus on your loan in the form of MyMela Credits.
Why would MyMela lend at 0% interest rates?
Our economic incentive is for each Artist Group to grow their business and be successful.
By cutting out all the financial intermediaries we can lend directly to artisans
and offer 0% interest loans to them.
What payment methods can I use to make a loan to an Artist Group?
We accept the following methods of payment:
•MyMela
Credits
•MyMela
e-Gift Cards
•American
Express
•Mastercard
•Discover
•Visa
•Paypal
Is my Artisan Loan a tax-deductible contribution?
Your MyMela loan is not a tax-deductible contribution.
How do I view all the activity in my loans?
You can view all of your loan activity by logging into your account and clicking
on the “MyMela Loan Portfolio” option in the menu of the “My Account” page. Once
here, the page will show all of your previous loan transactions, including the percentage
repaid to you on each of the loans you have made.
How do I view my available MyMela Credits?
You can view all of your loan activity by logging into your account and clicking
on the “MyMela Credits” option in the menu of the “My Account” page. Once here,
the page will show your available MyMela Credits.
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